How safe is your cash stacked in the bank? Many are the people who argue that as far as their cash is in a bank, it is safe. The inverse is true in the western banking system! Recently, a lot of political interference has put the banking system and clients deposits in great peril. A better word to describe the situation is a system that has crossed the red line. The good news is that there is a solution to the entire problem; opening an offshore bank account. Here are the major reasons why an investor needs an offshore bank account.
Steering away from political risks
Cash deposited in the western banking system is the first target by country’s administrations. Most of the administrations have laws that allow the governments to withdraw people’s deposits at ease. A good demonstration is what happened in Cypress in 2013. The government withdrew banks clients’ deposits overnight without notifying them. Well, you might also be a victim of a similar problem already! Other western countries are nationalizing their citizens’ retirement savings and taxing people’s bank’s deposits & interests.
However, Hong Kong has a very stable banking and political system. The independent nature of Hong Kong political system and focus on building a business economy has enabled it to pass strong laws to protect banks, clients, and clients’ deposits. It is because of this that most of the international banks prefer operating from Hong Kong.
Protecting personal accounts from being frozen back at home
Getting embroiled in a lawsuit in the west is a reality that many people have come to accept. A case can easily build at the workplace, home, or even in the neighbourhood. Once such a case drags you to the courts, the chances of getting your account frozen are very high.
The savings could be locked for a long time while the attorneys will have to be paid. The main target is your cash in the bank. To avoid this risk, it is important to open and put savings in an offshore account such as Hong Kong that is not subject to home jurisdiction.
Your cash will earn higher interest in offshore banks compared to back at home
Many banks in the west offer very low-interest rates. Even if you keep the cash in fixed accounts, the interest rate will still be low despite the fact that the money is lent to people at a higher interest. However, other financial institutions such as banks in Hong Kong are willing to pay higher interest rates to help grow your wealth.
Opening an offshore account provides you with the flexibility to access your cash anytime and total protection. It is the best way to have peace of mind that the cash is safe and ready in the case of an emergency.