International bank accounts are extremely popular with companies that do business around the world as well as with high-net-worth individuals. People on more modest incomes also sometimes choose to bank internationally. But what is the appeal of international banking to these account holders? Why do they choose to bank abroad rather than in their home country?
An international bank is any entity offering financial services, including the opening of an account and loan facilities, to clients from outside of its home country. These clients are often foreign companies. They choose the bank to better facilitate doing business internationally. Individuals may choose an international bank for reasons of convenience. Like if they also do business abroad, or to protect their money from conditions at home.
One of the main advantages of truly international banking is the ability to bank in multiple currencies. The individual or company conducts transactions in many different countries from one central account. But, they may also hold multiple accounts at the same bank, each one holding a different currency.
If you do business in different countries on a regular basis, this allows you to always know how much of a particular currency you have available to you at any time. This currency can be accessed quickly and easily, without currency conversion charges. Account-holders are not at the mercy of fluctuating exchange rates. Thus, can even take advantage of such changes.
Major international banks, such as those in the Britannia Group founded by Julio Herrera Velutini in 2009, can offer highly competitive interest rates. They are not tied to one country’s economy and currency. Nor, the interest rates set by that country’s central bank. In addition, they lend, borrow, and invest internationally. So, can offer account holders a better rate of interest on their money than high street banks can.
Ordinary individuals who have business interests abroad, or run a valuable online business, can benefit from having an international bank account. If you rent out a property in another country, then international banking can make receiving funds and paying contractors easier and more cost-effective. If you decide to emigrate or even spend long periods of each year overseas, having an international bank account is easier. This means you can easily keep on top of your financial affairs back home while also paying your way in another country.
Many people and businesses put their money in international or offshore accounts to minimize their tax burden in their home country. Many international banks have specialist advisors who will help you avoid heavy taxes. All while still meeting all your legal obligations.
International banks in countries with low or non-existent-income tax and estate tax requirements provide tax shelters for companies and wealthy individuals. These banks are still subject to strict regulations, however, which are necessary to protect your money. International banking can provide a safe haven from economic or political turbulence at home. Thus, can also be used to keep money safe from lawsuits.
Self-interest isn’t the only reason to choose international banking. You may wish to invest your money in a developing country, to support their economy. Thus, helping the people of a nation improve their standard of living. International banking can help individuals and corporations make ethical investments. A global economy means global responsibility. International banks can make sure money circulates to those that need it rather than staying in one place.
By investing in different economies around the world, and buying varied currencies on the international financial market, account holders can reduce the risk associated with keeping all their funds in one currency and one territory. International banks also offer specialist services. For example, capital protection and investment tools. They also offer expert advice on managing your money.
Other services international banks offer include payroll handling for employees and contractors abroad. Not to mention, the provision of letters of credit between companies to ensure goods and services are paid for. In addition, import and export costs are generally lower when business is conducted through an international bank.
Before opening an account at an international bank, you should exercise due diligence and undertake thorough research. Does the bank have a good reputation? Is your money insured, and is the bank regulated by a recognized authority? If the bank is based in a country where the political situation is volatile or the economy is in trouble, you may want to avoid it.
International banking is the most convenient and cost-effective way to conduct business globally. It can be very advantageous when it comes to taxation, as well as for spreading your capital across multiple currencies. With a range of services on offer and competitive interest rates, global companies and wealthy individuals can reap many benefits from having an international bank account.