Having a bank account has become the utmost important thing for every individual irrespective of income. Banking, investments, savings have become quite easy for any individual that a person can run financial operations from anywhere at any place in the world. An offshore bank account is such an account when an individual can open an account outside their residing country.
Offshore Bank Account
An offshore bank account is an account that can be opened outside the country in which you are residing. For example, if you are a UAE resident and want to have financial operations in any other country in the world, you open a bank account in that country and the bank account is called Offshore Bank Account.
There are some well-known countries in the world that offer the best offshore account benefits like Switzerland, the Cayman Islands, etc.
Offshore accounts are just for wealthy people but everyone who wants to maintain an account in a foreign land for various purposes like investments, interest rates, etc. But the nature of the account needs to be clear. The offshore bank account is also called a non-resident bank account as it is available exclusively for the non-residents of the country.
Also, check: How to manage multiple bank accounts?
Benefits of an Offshore Bank Account
The benefits of an Offshore Bank Account are,
- Convenient – An offshore bank account is accessible from anywhere and if you are having a business in that country then having a local account will be helpful to run the business transactions conveniently.
- High-Interest Rate – One of the benefits of a bank account is the interest rate offered. Some offshore accounts offer a higher interest rate than an account in your residing country.
Though the documents required for an offshore bank account depends upon the country you are opening the account at, the basic documents are,
- Government-issued ID proofs like Driver’s License, Citizenship ID
- Residing Address Proof
- Bank statements from the current bank
Steps to open an Offshore Bank Account outside UAE
Opening an offshore account is similar to a regular bank account opening in your residing country. The steps are as follows,
- First, select the bank in the country you are looking for. Pick the bank which is not just popular but also works well in terms of finances and has a good presence.
- Once the bank is picked, check the accounts available for non-residents that offer good features and benefits
- A few important things you check while opening an account are online banking availability, multiple currencies, international debit cards. As you are not going to reside in that country, it is necessary to note the ways to perform transactions online.
- After the account is picked, fill out the application form and provide the documents as per the bank’s requirement
- You also need to state the reason for the account as it’s an important step for the bank to avoid illicit transactions.
Eligibility to open an Offshore Bank Account outside UAE
The eligibility criteria to open an Offshore bank account is that the account holder should be able to provide all the valid documents required by the bank.
It is legal to get an offshore account for UAE residents outside UAE but the account openers should ensure it is for a genuine reason and no illegal notions are involved.