2007-04-19 09:44:05 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The answer depends on which country you live in.
In the UK it can be advantageous to have an offshore bank account denominated in foreign currency. You would do this becase if you transacted often in, for example, US$ and didn't want to be affected by day to day currency fluctuations.
Alternatively, you may want to hold a bank account in a country that has a much higher rate of interest - New Zealand is a popular example.
There is no tax advantage though as you are obliged to declare the interest in the UK and pay tax on it (there are issues about double taxation agreements so it is not that straightforward!)
For most average people there is no great advantage to an offshore account.
2007-04-20 01:59:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Advantage - you can hide some of your funds from your soon-to-be-ex wife and maybe take advantage of currency fluctuations (eg. convert ££ to $$ at1:2 and wait for the exchange rate to narrow).
Disadvantage - Inland Revenue will be informed and will investigate you for Tax Evasion & everyone will assume you are a drug dealer.
2007-04-20 01:37:25 · answer #2 · answered by Steve B 7 · 0⤊ 2⤋
FX rates
Interest rates
Hedging
Convenience (e.g. paying foreign mortgage)
2007-04-20 04:21:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋