Offshore Banking – Fiction Vs Fact

FICTION: Offshore banking can’t be that properly due to the fact they cannot certainly pay the excessive interest costs they offer. If they could truly pay the ones quotes then U.S. Banks would try and be aggressive and feature the equal hobby costs how to open offshore bank account.

FACT: Examine carefully the monetary statements of any U.S. Bank. You will see that their “gross” earnings in opposition to customer deposits can range from 25% to forty% — but — they have legal guidelines written in stone to restriction the interest amount they could pay clients on their deposits. The U.S. Banks vicinity their earnings into pointless frills and non-productive expenses like fancy buildings and many others., while offshore banking facilities do not do that and share their income with their clients.

FICTION: Offshore banking is not regulated, so you are prone to losing all money deposited with them.

FACT: The truth is that every usa within the free world has guidelines, guidelines and laws governing financial establishments and banks. Those policies, policies, and laws, but, are a great deal much less restrictive than the “protectionist” U.S. Banking policies, policies, and laws and allow the offshore banking enterprise higher possibility to earn an awful lot greater income for their buyers and depositors.

FICTION: Offshore banking centers are not insured with the aid of the F.D.I.C.

FACT: Some of the banks are but not that many. If they’re, they must observe the identical protectionist banking regulations and guidelines as all of the other F.D.I.C. Insured banks. But, the majority of offshore banking centers are insured; one manner or every other.

Depositor coverage programs just like the F.D.I.C. Software were installed in a few countries, in order that the banks in the ones international locations have their deposits insured. Independent insurance corporations insure the deposits of offshore banking facilities in different countries AND in contrast to the F.D.I.C., insure one hundred% of the banks deposits; no longer just those beneath $a hundred,000. (By the manner, a number of the banks within the U.S. Insure their deposits with independent insurance agencies and lots of banks in the U.S. Are not F.D.I.C. Insured)

Offshore banking is “self-insured” for the maximum part because of this the ones banks have a liquidity thing same to a hundred% (or extra) of the deposits at the books. Those banks have $1 (or greater) in liquid belongings for every $1 hung on deposit. Therefore, there is no bank run because they are able to cowl any depositor call for.

Self-insured offshore banking is truely greater at ease than F.D.I.C. Insured U.S. Banking. Why? Because the F.D.I.C. Insured U.S. Banks are authorized to preserve a liquidity issue equal to approximately 10 percentage in their public deposits. (Is it any marvel why more U.S. Banks fail every 12 months than in every other u . S .?)

Which type of bank could you sense greater safe having your cash in? An offshore banking organization which as one dollar in cash for every dollar on deposit, or a U.S. Bank which as ten cents in coins for each greenback that shows up on the deposit declaration they provide their clients?

FICTION: Offshore banking isn’t as huge or robust as U.S. Banking.

FACT: Of the most powerful and biggest huge banks in the world (in property), one bank ONLY is positioned within the United States:

Here are the safest offshore banks in the international, in line with a ranking executed in 2007 after examining their overall belongings in US greenbacks. This ranking is compiled from stability sheet statistics blanketed on AllBanks.Org

1 UBS AG Switzerland 2 Barclays UK 3 The Royal Bank of Scotland Group UK four Deutsche Bank AG Germany 5 BNP Paribas SA France 6 The Bank of Tokyo-Mitsubishi UFJ Ltd Japan 7 ABN AMRO Holding NV Netherlands 8 Societe Generale France nine Credit Agricole SA France 10 Bank of America NA USA


Germany’s largest financial institution, Deutsche Bank AG, said a fourth area lack of about $6.3 billion. A 12 months earlier, the bank published a profit of approximately $1.3 billion (1 billion euros), Bloomberg suggested.

Royal Bank of Scotland is anticipated to post losses of as high as £1.7 billion.

Bucking the fashion is a bank now not even at the list above and that bank is Standard Chartered bank that’s looking forward to to submit profits of 1.3 billion kilos. I actually have a touch who allow you to open an account at this bank on your agency if you preference to do so. The account would be in Hong Kong.

Another financial institution I recognize about is rated AAA via an independent rating service and in case you aren’t from the U.S. Or if you are from the U.S. And feature a foreign LLC or IBC to open the account with then you may deposit $15,000 and get worried in their borrow low and deposit high application which has earned depositors as tons as a hundred% in keeping with 12 months on their deposit. It is simple to open an account there.

FICTION: Offshore banking should not be superb, or greater centers could put it up for sale their services in newspapers and magazines within the U.S.

FACT: Offshore banking in fashionable is restricted with the aid of law from advertising in magazines, newspapers, radio and on T.V. Except they arrive below the equal protectionist regulations and rules which might be placed upon U.S. Banks. Knowing that, you have to be cautious about doing commercial enterprise with any offshore banking facility that publicly advertises inside the U.S. Media. Because you can be very sure that they have got bought-out to the U.S. Banking status quo and that established order will come to be selling you out to people who make the guidelines.

FICTION: Offshore banking is best for the wealthy.

FACT: About 25 years in the past, that can have been true. But I recognize of about 3 offshore banking facilities that will allow you to open an account for as little as $500. One of those is in the Asia, another in Europe, and another in Latin America.

FICTION: Opening an account at an offshore banking facility is too tough, and it is very hard to get a withdrawal when you need it.

FACT: Opening an account at an offshore banking facility is easy due to the fact you simply observe the commands they give to you. Getting your cash out handiest requires a request which you fax or e mail with an attachment covered.

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James Bauman Ph.D. Has been worried with the offshore world, banking, and asset safety for approximately 12 years now. During that point he has won an education in offshore banking and excessive yield go back making an investment and has discovered of an offshore bank wherein depositors regularly make 50% to 100% excessive yield go back on their cash in keeping with 12 months. Out of the enjoy he has received over the years he advanced the offshore banking and asset safety commercial enterprise FREEDOM OFFSHORE SERVICES. You can find out greater and the way to get FREE offshore bank account introductions here:

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