2022 is an opportunity for you to make some real progress with your finances. Whatever goals that you have in mind, including adding offshore bank accounts to the mix, is a great idea. This is true regardless of your age or if you’re a middle-income earner.
Now is a great time to establish accounts based in a nation where your money can grow. You also want to do business with a banking institution that’s secure and stable. It also helps if you have specific reasons for opening certain types of accounts.
To help you get started, let’s look at three aspects of offshore banking:
- What are some of the advantages of establishing and growing offshore bank accounts?
- Why would Belize be an excellent choice for establishing those accounts?
- What sort of bank accounts could you establish with a reputable bank in Belize?
By the time you finish going over these three areas, you’ll be ready to make contact and begin to establish your first account.
Understanding the Benefits of Offshore Bank Accounts
The reasons for opening and maintaining offshore accounts do vary. Some choose this route because they can use those accounts to take advantage of international investment opportunities that cannot be funded from home. Others travel abroad from time to time and find that using funds from offshore accounts is simpler for paying expenses, including covering medical costs.
Even if you’re not a world traveler and aren’t interested in international investing right now, there are still solid reasons to consider opening one or two offshore accounts. Consider these and how they might apply to you:
Earn More Interest on Your Deposited Funds – Depending on where you establish your accounts and the amount that you can use for the opening deposit, it’s possible to lock in a competitive rate of interest. In fact, that rate may be more favorable than what you can get with any domestic bank account. When you can afford to open a term deposit account and leave the money in place for a term of anywhere between one and five years, the interest earned may come as a pleasant surprise.
Protect Assets from Legal Action – Few if any of your domestic financial accounts are safe from some type of legal action. There’s a good chance that if you were the defendant in a civil suit or some type of criminal action, and the court ruled against you, all or at least most of your assets could be seized to settle any monetary awards to the plaintiff. If that happened, how would you manage to keep financially afloat?
Funds tucked away in offshore accounts are generally not subject to domestic court rulings. Those funds could provide you with the resources needed to get a fresh start.
Minimize Political Risks – Never assume that changes in the political climate at home won’t interfere with the funds in your domestic accounts. Banks can and do fail if certain events come to pass. The thing to remember is that the impact of domestic events on your offshore accounts will likely be limited. Once again, those funds could provide you with the means to weather whatever is happening at home.
As Well as Economic Risks – The same is true if the domestic economy experiences a recession or a depression. As the economic crisis worsens, your domestic assets could decrease in value. At the least, any funds you have in domestic bank accounts may no longer earn much in the way of interest. You could also see your domestic pension and other retirement accounts actually lose money.
The funds in your offshore accounts may experience little to no impact from the economic troubles at home. When the dust settles, you’re still on firm financial footing. Even if your domestic retirement accounts are decimated, the ones you have active with an offshore bank remain strong.
Enjoy a Measure of Privacy – Many nations have strict regulations about protecting proprietary data about banking clients and their accounts. The amount of information shared with domestic tax authorities is often limited. In fact, you may not have to report the accounts at all if the balances are under a certain amount. View this as one more way to have emergency funds that only a few will know exist.
Why Belize is a Great Location for Your New Offshore Accounts
Now that you have an idea of why offshore accounts are worth establishing, think about where you want those accounts to reside. There are plenty of nations that offer various benefits, but there’s one that you should consider closely: Belize. Why this country and not another one? Here are some reasons to consider:
- You Don’t Have to Travel to Belize
Unlike some other countries, you don’t have to be physically present in Belize to open bank accounts. You do have to provide documents that establish your identity, your current permanent residence, personal or professional references, and a copy of a valid passport. Typically, these can be remitted by post. In the meantime, you can send electronic copies via email. Once your documents are received and the application is approved, you’re ready to make the initial deposit.
- More Than One Account Type to Consider
You can set up checking and savings accounts easily enough. There are also other account types that allow you to earn higher interest rates, such as a time deposit or a demand deposit if you want immediate access to the cash. There’s also a debit card that you can use to access the account balance if necessary.
- Online Banking Options
You have access to your accounts around the clock. That’s great if you want to deposit funds from one of your domestic accounts, transfer funds from one offshore account to another, or just check the balances.
- More Favorable Interest Rates
Belize financial institutions tend to offer excellent interest rates on certain accounts. If your plan is to set aside funds for retirement, it makes sense to fund an account that offers the highest rate.
- No Language Barrier
Applicants who hail from English-speaking countries will not have to deal with language issues. English is used extensively in Belize’s banking community.
Examples of Offshore Accounts That You Can Establish in Belize
What kind of offshore bank accounts can you establish in Belize? Here are some that are likely to be of interest:
Demand Deposit Accounts – These often require lower opening balances and minimal advance fees. Demand Deposit accounts offer the benefit of being able to withdraw the cash quickly, even if you are not in the country. If you do decide to add to the balance and exceed a certain amount, the account will begin to generate interest.
Lifestyle (Savings) Accounts – These also come with minimal initial deposits and begin to accrue interest after you reach certain balance thresholds. A Lifestyle (Savings) account is worth looking into if you plan on retiring in Belize since it can serve as your household account once you’re in the country and establish residency. Think of it as ensuring that you have a bank account you can use within the country once you do arrive.
Term Deposits (CDs) – While the Term Deposit account requires a larger deposit, the initial amount is still within reach of the average middle-income earner. The good news is that it comes with a reasonable interest rate that can be paid monthly, quarterly, or annually to your demand deposit or lifestyle (savings) account. The term can vary; choose any time frame between one and five years.
Above and beyond basic banking accounts, it’s also possible to establish investment accounts that allow you the opportunity to increase wealth over time. It’s easy enough to use funds from your demand deposit or lifestyle account to secure an investment. As with the bank accounts, you can use online access to monitor the status of those investments.
Open an Offshore Bank Account Today
Welcome to 2022! Are you ready to take your financial wealth building to the next level? There’s no better time to start than today.
Contact the team at Caye International Bank and set up your first account. With their help, you’re sure to get off on the right foot.
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Luigi Wewege is the Senior Vice President and Head of Private Banking of Caye International Bank, headquartered in Belize, Central America. Outside of the bank, he serves as an Instructor at the FinTech School in California, which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of The Digital Banking Revolution, available in audio, Kindle, and paperback formats throughout all major international online bookstores – now in its third edition.