What's an Offshore Savings Account?

Offshore as a financial concept simply means placing money, wealth or assets in a country other than the one in which you live.

Typically it is the wealthy that place money offshore to take advantage of the favourable taxation regimes available in so called tax havens – but even for the likes of you and me there are advantages to the offshore savings world that we can all benefit from.

Offshore savings accounts allow people to either save a regular monthly amount or a lump sum, earn higher rates of interest from some offshore providers than we could if we saved ‘onshore’ with the local bank – and what’s more, we can earn our interest gross and only pay tax on it once annually which allows for extra compound growth in the interim which can give our savings a little extra boost.

1. Tax Free
   Most of us still have to pay tax on any income or gain that we derive even from investments or savings that are placed offshore. We are under an obligation to tell our local tax authority about any offshore savings accounts we have when we make our annual declaration to the IRS or HM Revenue and Customs. But because taxation is not deducted at source on the majority of offshore savings accounts we have up to a whole twelve months of compound interest giving our savings even greater growth power which makes saving offshore advantageous even when we ultimately do have to pay tax on the gains we derive from our savings.
   
   
2. High Interest
   The offshore savings accounts that offer the highest rates of interest are available to those in a position to regularly save large amounts monthly. Basically the more you can afford to save the higher the rate of interest you will be given, the higher the rate of interest the greater the compound growth you can earn and the harder your money will work for you.
   

A number of leading international banking providers offer offshore savings accounts that are easily accessible and secure. The award in 2009 for best offshore bank for expats was won by Anglo Irish Bank. You can open an account with them easily online and then have full access to your account and growth statistics online.

Gone are the days when saving and investing offshore was complicated, clandestine and the realm of the super rich or the super criminal – and we herald the arrival of an accessible concept of offshore from which we are all welcome to benefit.

Anglo Irish Bank - Best Expat Savings Account 2009

Leading expat magazine, Nexus, has voted Anglo Irish Bank Corporation (International) PLC winner in four categories in its 2009 Best Banks for Expats Awards, one of the most high profile and sought-after awards in the financial services industry.

The Nexus Awards are based on the number of times a savings account appeared in the magazine's monthly 'Best Buy' tables during the last 12 months. "Best Buy" accounts are those which offer the highest interest rate available at the time in the different categories of account.

Success in the Nexus awards confirms that Anglo Irish Bank has consistently offered competitive interest rates during the last year.

Anglo Irish Bank came top in four award categories:

• Best Offshore Bank for Expats, Overall (Winner)
• Best Offshore Bank for Expats, Sterling Notice Accounts (Winner)
• Best Offshore Bank for Expats, US Dollar Accounts (Winner)
• Best Offshore Bank for Expats, Euro Accounts (Winner)
  

Commenting, Anglo's Head of Personal Savings, Gary Quaggan, said: "When we launched our Privilege range of accounts we made a commitment to keep rates consistently competitive. Winning these awards for the fifth year running is a powerful and independent endorsement that we are delivering on that promise. The fact that we have also once again won in four award categories, including Best Overall Offshore Savings Bank, signals to expatriates, and others looking for international deposit accounts, that they can trust Anglo Irish to offer them a good deal across the board.

We aimed Privilege at a broad spectrum of investors, including expatriates who tend to have particularly busy lifestyles and can't always be expected to follow every rate change in the savings market. Many expatriates, therefore, find that Privilege's pledge to keep rates competitive over the medium to long term is something which particularly appeals to them. We like to think that our reputation for excellent customer service also plays an important part in winning and retaining investor loyalty".

Anglo Irish Bank Corporation (International) PLC first launched its Privilege range of deposit accounts in January 2002. Since then, its suite of deposit and fixed interest accounts has appeared regularly in the "Best Buy" tables.

All Anglo accounts are available to pay interest gross*, can be operated by telephone, in person, or online, and are available with a minimum opening balance of 5,000 in GBP£, US$, or Euro€.

*Subject to the provision of the European Savings Tax Directive

Sourced from Anglo Irish Bank [Link]