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Are offshore interest rates higher than British interest rates

Offshore banks operate in a very similar way to your average bank, but with less restrictions. Most international banks do not have to follow the strict ethical code that British banks have to follow, although they are not allowed to operate illegally. Because of the relaxed rules and regulations, offshore banks have become increasingly popular with British people who want to take advantage of offshore interest rates and the privacy that comes with having a offshore bank account.

Offshore interest rates are generally higher than British banks due to the banks themselves having lower overheads. There is also less involvement and regulation from the various Governments. Over here in the UK Government intervention reduces the interest rates available to potential customers. Offshore interest rates are also paid in full, with no tax taken off at all. This is the major pull for many people, as the Government in the UK classes interest payments on UK bank accounts as income, therefore it is subject to tax. This is why you may be familiar with people referring to offshore bank accounts as a tax haven.

There are many other benefits to having an account offshore not just interest rates. Many offshore banks pump large amounts of cash back into the local economy, meaning your investment is also helping to make life better for less fortunate people around the world. The most popular offshore banks are located in Switzerland and Singapore. You can access all you need too over the internet and telephone. In fact, you do not even have to set foot in the country to open an offshore bank account there.

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