However it is worth remembering that more than half the world's wealth is held via offshore companies, if not necessarily in offshore banks! Offshore accounts are simply accounts held in banks located in tax havens such as Seychelles, Mauritius, British Virgin Islands or Dubai or Ras Al Khaimah [RAK] in the United Arab Emirates [UAE] or others.



Banking regulations are simpler and flexible allowing more products and lower costs of offering them so you end up with a choice of products not necessarily available to you in your own country. Your money in the offshore account also is not taxed, so it grows faster than if was in your own country.

Investments offered in the money market segment of the financial market are some of the most common investments available offshore. These have short maturity dates and to find out more about offshore accounts that suit your needs you can consult a financial planner for offshore banking advice.

Offshore destinations are tax havens where taxes are low or nil and as such you can grow your savings at a faster compounded rate. You can invest funds via a company incorporated in an offshore tax haven by your self or with a group of investors, of even into a mutual fund that is registered in a tax haven - which will offer greater tax free returns.

You can even start an offshore company and make it your holding company to invest into your operating companies in other countries. For offshore bank accounts Switzerland happens to be one of the oldest and most preferred countries with its legendary bank privacy laws. There are many advantages associated with offshore banking that attracts people.

* It offers privacy and stability and helps increase savings.

* Individuals who have offshore bank accounts do not access it often; rather they spend money from their accounts in a local bank.

* Offshore deposits are kept for future or emergency uses and as such these accumulate considerably over a period of time.

* One more advantage of offshore banking is that anyone irrespective of wealth can open an account. There may be certain regulations regarding the amount of money required to open an offshore account but contrary to belief it is not a massive sum.

Along with the wealthy clients even a small business owner or a middle class individual can have offshore bank accounts.In this way one can do business and earn money and also save on profits since the tax system in offshore destinations is investor friendly. On the other hand offshore accounts indirectly develop the local economy as the money that comes in speed up economic activities.

You not only save tax with account banking offshore but also get many more benefits that strengthen your finances. You get asset protection benefits, personal privacy advantages and access to better account structures and services.

So why are offshore investments treated as 'shady' or 'quasi-legal'? Most tax authorities would like you to tell them about your offshore accounts, and also would like that you pay taxes on those assets to them. However, most offshore investors and offshore account holders want to escape the clutches of their local tax departments through tax shelters such as offshore companies, double tax treaties, or through non-disclosure of overseas assets.

In many countries it is necessary to inform your relevant tax authorities before placing your assets offshore and if you fail to do so then your investment can be illegal technically. So before taking any decision on investments offshore you should take offshore banking advice from qualified financial consultants in your tax jurisdiction. Account banking offshore account structures are very flexible and accessible, pay better interest, have lower charges and multiple currency transaction facility.

With all these advantages, anyone can be convinced that investing offshore is a wise step to take. But there are certain factors that need careful consideration before you make the decision.

In the past and today in the traditional tax havens, offshore accounts are expensive with high minimum balances and high transaction costs. Even the incorporation service providers charge high fees in these tax havens. However, the newer ones, such as Mauritius or Seychelles are quick, less pretentious, and cost around US$ 2000 for company incorporation and bank account opening!