Top Offshore Banking - Is it the investment place for you?
With the recent changes to the legislation in the Bahamas making it possible for them to allow the formation of private trust companies, you may be considering moving your funds offshore. This article attempts to describe the various options for offshore banking and investments
Amendments have recently been made to legislation in the Bahamas to allow for the formation of Private Trust Companies. This is a demonstration of the government's commitment to the delivery of superior financial services to all clients.
The government is in talks with stockholders including International Trust Companies and Banks, The Bahamas Financial Services Board and other financial institutions. Recently a seminar was held to discuss the review and use of legislation as it pertains to Private Trust Companies.
Private Trust Companies are formed for the purpose of acting as trustees of single trusts. The majority of the world's wealth is held by private individuals and their families. Private Wealth Management is about the preservation of that wealth. Private Wealth Management for families involves the creation of programs to generate wealth, control the transfer of wealth from one generation to the next and protect wealth from predators. These services are normally geared towards individuals with a high net worth.
Most international banks offer a special rate of interest to wealthier private depositors and call it private banking. Minimums have dropped to under $10,000 in many cases. Many institutions are catering for the client with $20,000 to invest in the hope that they will have $200,000 or $2 million to invest in the future.
A top offshore banking investment or private offshore investment normally means investment management offered on a personal level to the company or individual with disposable wealth exceeding $100,000. You should take care when you are thinking of opening a private bank account. You need to be sure that it is the sort of bank that you would like to do business with. Offshore banking is not the same as private banking. You need to know the difference. Find out what banks hope to gain from your investment before you open any type of account.
Private banking does not necessarily indicate investment. Banks like to lend money to wealthy people. If you deposit money with a private bank that is not accompanied by borrowing or lending you are not likely to be charged a fee. In the majority of cases these banks will be hoping for more involvement from wealthy depositors in the future.
Wealthy individuals are normally bombarded by offers from many different banks wanting them to deposit their money with their institution. Your residential status will normally affect whether you choose an offshore banking investment or a conventional banking investment. If you plan to reside in a high tax area or plan to do so in the future then you will probably strive to make an investment with an offshore bank.
Before you become involved with a bank you should try and find out everything about it. You will be able to choose the right bank for your specific needs after you have looked into what each bank can offer you.
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