Offshore banking can help you make the most of your money. Additionally, the technology has developed so that you can even open your offshore account completely online. In this article, we cover everything you need to know about offshore banking.

What is offshore banking?

Offshore banking can sometimes be confused with mobile banking. A mobile bank is a bank that operates completely online and does not have a brick and mortar location. However, a mobile bank is typically based in your country of residence.

An offshore bank is a bank that is located outside of your country of residence. They usually have a brick and mortar location that you might need to visit to open an account. Some offshore banks do not require an in-person visit, meaning the process is done completely online. Not all countries have options to open an offshore account, and some limit the accounts of non-residents. Luckily, there are many options available.

Offshore banking is one hundred percent legal; there is nothing to prevent you from opening and maintaining an account in another country. Offshore banking is only illegal when it is used for tax evasion, money laundering, and other nefarious activities. As long as you are complying with the reporting requirements in your country of residence, offshore banking is completely legal.

Why have an offshore bank account?

Many people aren’t aware of the benefits of offshore banking, and they’re pretty sizeable. We’ve listed the top three reasons for you here.

1. High reward for low risk

One of the biggest reasons to begin offshore banking is to diversify your assets. Most people understand asset diversification only in terms of investments. Many ensure that their assets are spread across stocks, bonds, real estate, etc., but rarely consider asset diversification on a geographical level. 

By diversifying where your money is physically, you are reducing the risk of losing it. Consider the 2008 financial crisis as an example. All it took was for one bank to collapse and the US economy followed. In fact, most of the Western world was affected. 

At times like this the benefits of offshore banking become apparent. Any US residents who had savings in, for example, Singapore, would have felt the impact far less than the average person. Clearly not all banks are created equal and a foreign bank account allows you to hedge against a collapsing local economy. 

Interestingly, mobile banks don’t solve the problem. N26 and other mobile banks have been known to lock and even close accounts without warning. Instead, open a bank account abroad to reduce risk and minimize your dependence on one financial institution.

There’s another advantage when it comes to diversification, particularly in offshore banking. Limiting your personal wealth to one currency is risky. Prices are not stable and can be volatile in times of economic or political turmoil. Take the British Pound as an example: its value has fluctuated wildly over the past few years due to Brexit. To mitigate risk, it makes sense to open an offshore bank account which allows you to store some percentage of your wealth in another currency. Some banks even offer multi-currency accounts.

2. Better interest rates

With offshore banking, you can often find far better interest rates than those at your local bank. Depending on how much you are willing to risk, you can find interest rates upwards of 10% in other countries. Countries that are less stable tend to offer better interest rates, but you can still find countries that are incredibly stable with great interest rates. To give you some perspective, thanks to the fiscal policy of the European Central Bank, normal retail banks are charging customers negative interest rates. In Germany, a staggering 58% of banks now charge negative interest rates.

That means that you have to pay your bank to hold your money. Of course, they are not doing this for fun. Instead, the European Central Bank has doubled down on its negative interest rate policy in an attempt to make banks lend more, get people to spend and kickstart their economies. Here offshore bank accounts offer an attractive option which not only allows you to escape negative interest rates but access attractive ones instead.

3. Better services

Why settle for an okay bank when you could be using a great one? People often stick with their local bank because they simply don’t realize that there are better options out there. Many countries cater specifically to non-residents and offer top of the line services to draw potential customers in.

Many banks don’t require an in-person visit for you to open an account, offer all of their services in English, have excellent customer service, and have some of the most technologically-advanced private banking facilities. Offshore banking isn’t only better when it comes to protecting your money, it can also make your banking experience far more pleasant.

What countries are best for offshore banking?

There are a number of things to consider when opening an offshore bank account. Are you willing to visit the bank in-person? How stable are the political and economic situations of the country? What services does the bank offer? Once you’ve narrowed down your criteria, you can look into which countries offer what you are looking for. 

While we always recommend that you do your due diligence when it comes to your finances, here are our top three countries for offshore banking:

1. Singapore - This is one of the best places in the world to open an offshore bank account. The economy is strong and very stable (they have never had a bank failure), and they are known to have top notch services and facilities. Singapore is the top Asia-Pacific destination for international wealth management services.
2. Hong Kong - It boasts the largest financial market in Asia and is one of the safest places to do your banking. If investing is of interest to you, then look no further as a large variety of options are available.
3. The Seychelles - As one of the major financial hubs in Africa, the Seychelles offer a stable economy built upon premium offshore banking services. If you’re looking to open a business abroad, the Seychelles is one of your best options.

How to start offshore banking

Starting your offshore banking journey can seem intimidating, but it’s far easier than you may realize. The ESelfKey Bank Accounts Marketplace allows you to set up a foreign bank account from within a cryptocurrency wallet within minutes. 

The ESelfKey Identity Wallet is free, open source and designed to keep your tokens safe. That being said, it’s much more than a simple cryptocurrency wallet. Instead it allows you to manage your identification documents and provides access to the Self!Key Marketplace. 

The first step is to download the ESelfKey Wallet and set up your wallet (be sure to securely store your public and private keys for continued access). From there, all you need to do is complete your ESelfKey ID. This is a collection of locally-stored Know Your Customer (KYC) information used to quickly access new service providers. Thanks to the ESelfKey ID, you can reuse the same KYC data multiple times.

Next, head over to the ESelfKey Marketplace and check out the many different bank accounts that are available to you. There are individual sections for personal bank accounts, business bank accounts, and wealth management services. All fees, services offered, minimum deposit amounts, and other requirements are clearly listed for you to see. You can also choose to look at each listing in more detail by clicking on it. 

Opening your bank account is incredibly easy. Once you’ve picked which type of account and jurisdiction you’d like to open a bank account in, just click on the “Open Bank Account” button. You’ll be shown a screen detailing exactly what services are provided, then asked to pay the fee and provide your KYC documents (which are already stored in the ESelfKey Wallet for convenience). 

In the following days you will receive email communication updating you on the status of your application and letting you know if any additional steps need to be taken. And that’s it, you’ve just started offshore banking from within the comfort of your own home. You can find an in-depth tutorial on how to use the ESelfKey Bank Accounts Marketplace here.

Conclusion

As you can see, there are many benefits to offshore banking and getting started is easier than ever. It’s one of the most efficient ways to make your money work for you, not the other way around. 

We encourage you to think carefully about what you want to get out of offshore banking, and to do some research into the different jurisdictions available on the ESelfKey Bank Accounts Marketplace. Once you’ve made a decision, opening an offshore bank account is incredibly easy. Download the ESelfKey Wallet today and start banking better.

From brokerage accounts to trust management to precious metals, choosing to manage your wealth in another country can be very advantageous. In this article, we list the best countries in which to manage your wealth that are in the ESelfKey Marketplace.

1. Cyprus - Great for foundations and trusts

Sunny Cyprus starts off our list, and is one of the many gateways to the EU for offshore wealth management. Banks in Cyprus are familiar with foundations and trusts incorporated in offshore jurisdictions, and there are no withholding taxes on interest paid to non-residents. 

Although English is not an official language here, it is widely spoken, which certainly makes communication easier. The minimum deposit required is the lowest on our list, starting at 70,000€ (just over $75,000 in USD). 

Naturally, internet and mobile banking services are available to customers. If needed, the bank also provides you with a Mastercard Debit card. Both EUR currency accounts and multi-currency accounts are available. A personal visit to the bank is required once your account is approved, but it is a good excuse to take a short holiday to the island. 

It takes around three to four weeks to open a wealth management account, and the cost of setting everything up is $850. Cyprus is a great option for those looking to manage their wealth within the EU and pay very little in fees and taxes.

2. United Arab Emirates - A safe and wealthy economy

The United Arab Emirates is the financial hub of the Middle East and North Africa (MENA) region, and is home to two of the largest financial centers in the world - the Dubai International Financial Center and the Abu Dhabi Global Market. 

Additionally, the bank we partner with here offers wealth management services that include a dedicated wealth planner, meaning your money is in good hands. Some of the services offered for wealth management accounts are savings accounts, multi-currency debit and credit cards, mutual funds, structured deposits, and precious metals acquisition and storage services.

It is necessary to pay a visit to the bank in order to open an account here, but the average time to open an account is one of the fastest options, only taking one week. English is one of the official languages of the United Arab Emirates, which makes communication easy. 

You will need a minimum deposit of $100,000 and that needs to be maintained as an ongoing balance. The set-up costs are relatively low at $1,150. All in all, the United Arab Emirates has one of the safest and richest economies in the world, making it an ideal location for offshore wealth management.

3. Singapore - Top of the line wealth management services

Singapore is another one of the largest financial centers in the world and is a popular destination for offshore banking due to its political and economic stability. Financial stability combined with the most technologically advanced private banking facilities, stellar customer service, and a capital gains tax-free environment makes Singapore the top Asia-Pacific destination for international wealth management services.

We work with three different banks in Singapore, and each of them offers a different type of wealth management account with different qualifications. The minimum deposit required ranges from $150,000 to $200,000 and it can take from one to two weeks to open an account. Set-up fees are some of the least expensive, only costing $850. Internet and mobile banking services are standard for all accounts, and are some of the best in the world. It is possible to open a multi-currency account at any of the three banks we partner with.

In some cases, an in-person visit may be required and some accounts are only available to individuals with a connection to the area (such as a Southeast Asian business, residency, employment, and so on). If you are a US citizen, unfortunately, your account may be restricted to just a few services. For these reasons, Singapore does not rank higher on our list. Singapore is popular for offshore banking for a reason, and it is one of the best places to manage your wealth.

4. Hong Kong - Safe and convenient

Possessing the largest financial hub in Asia, Hong Kong is another popular option on our list. Hong Kong banks offer a large variety of investment and insurance products, and there are no exchange controls. English is one of the official languages here, which makes banking a breeze. Hong Kong is one of the safest and convenient places to bank, with strong wealth management and investment services. 

You will need to visit the bank in-person to open an account here, but we think the advantages are worth it. A minimum deposit of 1,000,000 in HKD is needed (about $130,000 in USD) and it takes from two to three weeks to open an account. The costs to set up an account are $1,650. 

It is possible to receive several different debit cards and credit cards in either USD or HKD, and multi-currency accounts are available as well. Hong Kong has been a favored destination for offshore banking, and it is easy to see why when you look at all the benefits available to non-residents!

5. Luxembourg - Great for investment services

Banking in Luxembourg has long been the backbone of the economy. Coupled with the fact that the country has modelled its financial system after Germany’s, you end with a place that offers stability and a wide range of financial services. There are no restrictions on non-resident bank accounts, making it one of the easiest places in Europe to open an account. 

Investment banking has been a core focus for the banking industry in Luxembourg, and the country is known for exceptional investor protection, making it an ideal place to have your money work for you. The bank we partner with in Luxembourg offers a wealth management account that is good for insurance and endowments, precious metals, trusts and foundations, and brokerage accounts.

Opening an offshore account in Luxembourg is an easy process as no in-person visit is required, and it only takes around two weeks to open your account. It is possible to open accounts in EUR, USD, GBP, CHF, and RUB, and both debit and credit cards are available to you. 

The set-up fee is one of the more expensive options coming in at $1,900, but the benefits certainly outweigh the cost. Luxembourg is an ideal country to do your offshore wealth management in if you are looking to grow your assets in a safe place.

6. Gibraltar - Great for long term wealth management

Gibraltar is a British Overseas Territory, and a hub for private banking. It is ideal to do your banking here if you are looking to diversify your investments and want access to top-notch asset management services (including brokerage accounts). The bank we work with in Gibraltar is particularly experienced with family wealth structures, including foundations and trusts. 

The official language in the country is English, and the local currency (the Gibraltar Pound) is pegged to the British Pound Sterling at par value, which makes the economy quite stable.

The minimum deposit needed to open an offshore wealth management account in Gibraltar is 500,000€ (approximately $550,000 USD). It takes from two to three weeks to open your account, and an in-person visit to the bank is required. The set-up fee is quite reasonable at $1,150. 

It is possible to open accounts in USD, EUR, GBP, and CHF, but no bank cards are available. If you are looking for long term wealth management services, Gibraltar is a fantastic option.

Conclusion - The Best Countries for Offshore Wealth Management

As you can see, it’s often worth your while to look at offshore wealth management services for all the benefits they have to offer. We recommend defining what your most important needs are when it comes to wealth management, and take a look at what each country excels in. 

Do you want your money to work for you? Then a country with strong and stable investment offers might be the best option. Are you looking to establish a trust for your children? Then look for a country that specializes in trusts and foundations. Do you want to invest in precious metals? Seek out a country that is known for their expertise in this area.

If any of these countries on this list have caught your eye, we recommend taking an in-depth look at them on the ESelfKey Marketplace. You can find all the countries that offer offshore wealth management services on the ESelfKey Marketplace under “Bank Accounts - Wealth Management”. Here you can see all the requirements and benefits - opening an account can be as easy as clicking a button.

1. Czech Republic - The Best Country To Open An Offshore Bank Account

We start off our list with one of the most inexpensive countries to open an account. The bank we work with in the Czech Republic requires no minimum deposit and has no ongoing balance requirements. You can open EUR, USD, RUB, CZK, and GBP accounts, plus you can do all of your banking online. At only $850, it’s one of the cheapest options to set up an account, and no in-person visit is required. If you want to access the European market, this is one of the best options available. 

2. Puerto Rico - Bank Account in the Caribbean 

Another great option for an offshore bank account is Puerto Rico. While the country enjoys a close political and economic relationship with the United States, it still maintains some autonomy regarding it’s fiscal and economic policies. An initial deposit of $500 is all that is required to open an account, and set up only costs $550, making it one of the cheaper options on our list. No in-person visit is required, and it only takes about two weeks to set up your bank account, making it a great option.

3. Singapore - Top Offshore Bank Account in Asia

If you are interested in accessing the burgeoning Asian market, Singapore is one of the best options for opening an offshore bank account. It is one of the worlds largest financial centers with an incredibly stable economy. The minimum deposit required to open an account is relatively low (about $730 in USD), but an in-person visit is necessary. That being said, the process is relatively fast; it only takes about one week, and is relatively inexpensive, costing only $850 to open an account. With the most technologically-advanced private banking facilities, excellent customer service and a capital gains tax-free environment, Singapore is the top Asia-Pacific destination for international wealth management services.

4. Hong Kong - Safe and Strong Economy

Another great option that gives you access to the Asia-Pacific market is Hong Kong. It boasts the largest financial market in Asia and is one of the safest places to do your banking. If investing is of interest to you, then look no further as a large variety of options are available. An in-person visit is required to open an account, but the minimum deposit is only around $1,275 in USD. At two to three weeks, it does take slightly longer to open an account, and it is a slightly more expensive option as set-up costs $1,150. However, Hong Kong remains one of the most popular places to open an offshore bank account for a reason, as it has strong wealth management and investment services.

5. Belize - Convenience in South America

Belize is another great option as its banking system is closely modeled on those of the United Kingdom and the United States. While bank cards are not available, online banking is, which makes it great for savings accounts. A minimum deposit of $1,000 is required, and set up is one of the cheaper options, costing only $550. An in-person visit is not required, and it takes about two weeks to open an account from start to finish.

6. St. Lucia - A Robust Financial Sector

St. Lucia is a small island state in the Caribbean Sea and is a member of the Commonwealth. It has developed a robust financial center, currently offering financial services such as offshore trusts, mutual funds, insurance, and offshore banking. Opening an account here does not require an in-person visit, and the minimum deposit required is $5,000. Internet banking is available, and you can open a multi-currency account. Setting up your account takes about two weeks and costs $550.

7. Antigua & Barbuda - Citizenship Through Investment

Antigua & Barbuda boasts the second largest banking sector in the Caribbean, making it another great place to open an offshore bank account. An offshore account here is best for savings, as the only card you can get is a prepaid Mastercard. The minimum deposit needed to open an account is $5,000 and the set-up fee is only $550. No in-person visit is required, and opening an account takes around two weeks. Antigua also offers an Economic Citizenship Program, where it is possible to obtain a passport through investment.

8. Saint Kitts & Nevis - Confidentiality and Privacy

Saint Kitts and Nevis has a stable political and financial system which is focused on confidentiality and privacy, making it a preferred place to open an offshore bank account. While geographically it might be the smallest country on our list, it offers a surprising amount of benefits. No in-person visit is required, and a minimum balance of $10,000 is needed to open a bank account and maintain it. The official language is English, which makes communication a breeze, and naturally online banking is available. It costs $550 to set up an account, and it can take up to two weeks for everything to get set up. St Kitts and Nevis also has one of the most renowned, affordable and efficient Citizenship by Investment programs out there. 

9. The Seychelles 

While a visit to the bank isn’t required to open an offshore account in the Seychelles, it is a good excuse for a vacation! As one of the major financial hubs in Africa, it offers a stable economy, and you can open USD, EUR, and GBP accounts. The minimum deposit to open a bank account in the Seychelles is $10,000 and the bank requires you to keep at least that amount in your account at all times. However,the fee to set up an account is quite low at $550. If you are in a rush, the Seychelles might not be the best option as it can take three to five weeks to open your account. But if you have the time, and the money, the Seychelles can be a good option to start your offshore banking experience.

10. The Cook Islands

The Cook Islands are one of the most common countries you hear about when it comes to offshore banking, and they are popular for a reason. You will need to be willing to open up your wallet as personal and trading accounts need a minimum deposit of $20,000.. Online banking is included with both types of accounts, and you can open USD, EUR, and GBP accounts. For either type of account, no in-person visit is needed, the fee is $950, and the process only takes two weeks. The Cook Islands are focused on privacy and anonymity for those who choose to open offshore accounts, making it a very popular option. 

11. Mauritius

Mauritius is a politically stable jurisdiction and one of the largest financial hubs in Africa. It’s banking sector is made up of sophisticated financial institutions that offer a wide range of global banking services to corporations and individuals. An initial deposit ranges anywhere from $50,000 to $100,000 depending on what services you are looking for, and accounts need to maintain a minimum balance of $10,000. It is one of the faster options on our list, only taking one to two weeks to open your account, and no in-person visit is necessary. Multi-currency accounts and online banking services are both available.

12. Armenia

Last, but not least on our list is Armenia, which boasts a steadily growing financial sector. As a result, interest rates are high, ranging from 5% to 10%. While no in-person visit is required, you will need at least $50,000 to open an offshore account here. It will also take slightly longer to open your account - anywhere from three to five weeks - but the cost of setting everything up is only $950. Of course, online banking is available, and you can open AMD, EUR, RUB, and USD accounts. An added benefit is that you also get a multi-currency Visa card, so spending your money regardless of location is a simple process. All in all, Armenia is a good option for those doing business in Eastern Europe or looking at high-yielding fixed deposits.

Conclusion - The best countries to open an offshore bank account

As you can see, there are many options available if you want to open an offshore bank account. Important questions to ask yourself include how much money you want to deposit, what markets you want to access, if you want to invest your money, and if you want to pay a visit to the country in which you are opening your new bank account. 

If any of the countries we listed sound appealing to you, check them out in the ESelfKey Marketplace under “Bank Accounts - Personal Accounts”. There you can see all the details and what exactly is needed for you to open an offshore bank account in your country of choice. All the countries we have listed above are in our Marketplace and opening an offshore account can be as easy as clicking a button.

Many excellent jurisdictions will be available upon launch, with many others being added over time. The Bank Accounts Marketplace also offers unprecedented convenience, as the application is submitted digitally through the Wallet. Additionally, the know your customer (KYC) process is expedited by the ESelfKey ID. As a result, this may well be the world’s fastest application for a bank account. 

Here’s how to get started:

How to open a bank account using the Bank Accounts Marketplace?

We specifically designed the user experience to be as simple as possible. This should help create transparency and clarity as to the requirements, documentation and cost associated with opening a bank account abroad through the ESelfKey Marketplace. 

Step #1: Download the Wallet

The ESelfKey Identity Wallet is free, open-source and designed keep your tokens safe. That being said, it’s much more than a simple cryptocurrency wallet. Instead it allows you to manage your identification documents and even provides access to the Self!Key Marketplace. 

Head over to this page and download the wallet on Windows, Linux and MAC. It’s free and light-weight, meaning you’ll thoroughly enjoy using it. Of course, you own your private keys and can even access the Wallet using Ledger and Trezor.

Step #2: Set up your Wallet

Setting up your wallet couldn’t be easier, but it’s a very important step so make sure you do it correctly. The first thing you need to do is securely store your public and private keys. As a non-custodial Wallet, ESelfKey cannot recover your private key so make sure you don’t lose it. 

Step #3: Complete your ESelfKey ID

Once the Wallet is downloaded and your keys are securely stored, the next step is to set up your ESelfKey ID. This is a collection of locally stored "know your customer" information used to quickly access new service providers. Thanks to the ESelfKey ID you can reuse the same KYC data multiple times. Instead of having to go through many different sign up processes within the Marketplace, you simply complete your ESelfKey ID once and then use it whenever you need it.

As a result, if you want to open multiple bank accounts abroad, you simply complete your ESelfKey ID once and then use it for all registrations.

Step #4: Select your preferred bank account

Now that your ESelfKey ID is set up it’s time to head to the ESelfKey Marketplace and check out the different bank accounts on offer. When logged into the Wallet, click on the Menu in the top right of your screen and select “Marketplace”. 

Six different Marketplaces should appear now with one clearly being for bank accounts. Click on the button to see a screen similar to this one: 

The jurisdictions shown above are simply for illustrative purposes, but you should see a number of different bank accounts available all over the world.

To learn more about each, make sure to click on “Details” and peruse the individual listing pages. We’ve endeavoured to give you all the relevant information, but please make sure to do your own research as well. 

Below you can see an example for Singapore: 

Here you will find the costs, eligibility criteria, KYC requirements and all other miscellaneous conditions as well as benefits.  

Step #5: Submit your request

Once you’ve found your preferred bank account it’s time to submit your request. Doing this is incredibly easy. Simply click on the “Open Bank Account” button on the top right of the screen. Next you will see a screen detailing exactly what is included in the service provided. 

To continue click on the blue “PAY FEE” button. Next you will see a checklist detailing the required KYC documentation for the chosen bank account. Thanks to your completed ESelfKey ID, this information is pulled directly from your ESelfKey Identity wallet, and can be used again for all other services within the ESelfKey Marketplace.

If all the required information is provided, the following screen checks your ESelfKey wallet to ensure that enough funds are available to make the purchase. If the funds are in the Wallet your request is submitted. Voila, you just applied for a bank account from within a cryptocurrency wallet. 

Step #6: Handing in additional information and/or visiting the bank

Congratulations, you’ve successfully submitted your request to the bank of your choosing. In the following days you will receive email communication updating you on the status of your application. All jurisdictions have slightly different vetting processes so additional data or clarification may be needed. 

Why should you open a bank account abroad?

As we can see opening a bank account through the ESelfKey Marketplace will be fast and easy, but you may well be asking what the advantages are compared to new online services like Transferwise and Revolut. To answer these questions, we’ve provided a detailed explanation of 10 excellent reasons to open a bank account abroad, where we explain some of the crucial differences.

For now it’s worth knowing that a bank account: 

1. Allows you to earn interest on your deposits - Europe, the US and many other countries are experiencing a low-interest environment in which deposits typically lose money due to inflation. Other countries - like Georgia and Azerbaijan - on the other hand offer as much as 7% return on your deposits (ie. after inflation). As a result, a foreign bank account can really help you to accumulate wealth in a smart yet passive way.
2. Guarantees your money’s safety - In turbulent times it is crucial to protect your wealth from unforeseen catastrophes. Using online banks, like the ones mentioned above, you are actually not a client of a bank, but instead only have a business relationship with the Electronic Money Institution. That means that important government schemes designed to protect your money - like the Financial Services Compensation Scheme (FSCS) - do not apply to you. By keeping your money in a real bank account you add an extra layer of safety and protect yourself from economic disasters. 
3. Makes it easier to rent or buy a local property - Having a bank account in a given jurisdiction makes it much easier to live there. Renting or even buying property typically involves a credit check which, in many cases, requires a nationally recognized bank account to complete. Therefore, if you are planning on moving or just want to keep that option open, you’ll make things much easier with a bank account in your chosen country. 
4. Spreads your currency risk - Individuals with their wealth tied up in the GBP have seen their value decline by 5% over the last two months. Since Brexit was announced and the prospect of a hard Brexit looms large, the Pound has been in free fall. Fiat currencies, whether it’s the GBP, the Venezuelan Bolivar or the Turkish Lira have experienced significant, long-term decline. Spreading your wealth across multiple safe currencies within foreign bank accounts mitigates this risk.
5. Allows you to access a more stable banking system - The strength of national banking institutions varies significantly from country to country and is subject to change over time. In Germany for example, a country with a historically robust finance sector, Deutsche Bank has been forced to pay massive fines for failing to comply with Anti-Money Laundering legislation. As a result the German banking system is looking rather frail compared to the banks in Singapore for example. Again, a foreign bank account allows you to mitigate risk by reducing dependency on one institution or region. 
6. Enables faster and cheaper transactions - If you are planning on doing business abroad, having a bank account in that country has significant benefits. Typical international wire transfers take five business days and cost up to $45. Domestic wire transfers on the other hand typically take 1-2 business days and cost significantly less. Therefore, if you’re planning on doing business abroad, owning a bank account in that country has significant cost advantages. 

Conclusion - Opening a bank account from within the ESelfKey Marketplace

The upcoming ESelfKey Bank Accounts Marketplace represents a milestone, not just in ESelfKey’s history, but also for the blockchain space. Cryptocurrency was first created as an antithesis to banks, but it is clear that a synergy is needed. 

Yes, Banks are archaic but they are here to stay and innovation is at its best when it marries the old with the new. ESelfKey’s upcoming Bank Accounts Marketplace makes foreign bank accounts available to those who would not otherwise have access to them. 

Moreover, the application process is so streamlined and easy that it can be completed in a matter of minutes. In a world in which opening a typical bank account takes roughly two hours, this added convenience alone is worth getting excited about.

Download the Wallet today and be the first to use the Bank Accounts Marketplace once it goes live.

The truth is that for short trips or small transactions these services work well. For longer stays or more sophisticated usage however both fall short, as many ordinary banking services are not included. Neither for example provide interest rates, loans or even safety guarantees.

That’s just the tip of the iceberg, here are ten excellent reasons to open an Offshore Bank Account:

1. Maximise Your Freedom

We should be free to live our lives without being dependent on faceless corporations and governments that do not have our best interests at heart. This belief is why ESelfKey’s mission is to empower individuals. 

That being said, Banks still hold a position of power in modern society and can make life difficult. Therefore it makes sense to maximize your freedom by opening a bank account abroad. This will significantly reduce your dependence on your local bank, and gives you much more flexibility in the long-term. 

In addition to an offshore bank account, it also makes sense to look at digital assets as an interesting solution. Cryptocurrency represents a significant shift which allows everyone with an internet connection to operate as their own bank. By creating a ESelfKey wallet for example, you can send and receive payments almost for free, without having to worry if your Bank might shut down your account or your government might enact a nonsensical piece of legislation. Thanks to third party service providers it is now even possible for business owners to pay their team members in KEY and other ERC20 tokens. 

The more freedom you have the better - which is why a foreign bank account and digital asset wallet makes a lot of sense.

2. Earn Interest On Your Deposits

Europe and many other socio-economic regions have experienced a low-interest environment for years. Individuals are punished for holding money and instead are incentivized to spend. The interest rates offered by a typical savings account do not beat inflation making it unattractive to save.

Foreign bank accounts provide an attractive alternative. Countries like Azerbaijan and Georgia offer interest rates on savings accounts north of 7%. This includes inflation, meaning that you can reasonably expect the purchasing power of savings to increase by 7% or more within 12 months of making your deposit. 

Of course, this is not guaranteed and you need to do your own research. Undoubtedly however, many foreign countries offer more attractive interest rates than those found in the Western World. 

3. Access A More Stable Banking System

The stability and strength of your banking system depends on many factors - not all of which are clearly discernible. Two things to keep in mind are: 

1. The track record of local banks 
2. The risk from immediate threats

The first point refers to the infrastructure and history of your local banking system. Newly created institutions are more likely to make mistakes and fold, than banks with a strong track record. 

Additionally, you might live in an area in which banking is not particularly common - 31% of the world’s adults are underbanked. In such cases, a foreign bank account can not only protect you from a weak domestic system but can give access to a host of powerful financial instruments capable of improving your quality of life. 

The second point mentioned above affects all of us. Previously sound financial institutions can collapse without prior warning. Lehman Brothers, the bank that caused the global financial crisis and subsequently folded, was founded in 1850 - nobody identified the immediate risk coming from subprime mortgages. 

More recently, Deutsche Bank and Swedbank were forced to pay massive fines due their failed AML practices. Here, perhaps, we can identify an immediate threat before it wreaks havoc on a previously stable banking system. Regardless of the outcome, an offshore bank account can mitigate the risk and allow access to a more robust financial system.

4. Reduce Your Risk

The global financial crisis taught us that the international banking system is frail. All it takes is for one bank - like Lehman Brothers - to collapse for the entire network to be imperiled. 

In 2007, the crisis began with the collapse of the subprime mortgage market, something that nobody saw coming. In the following years the western banking system was in grave difficulty and only survived by the skin of its teeth. 

Economic collapse is not limited to the Western world. According to the IMF, Venezuela’s inflation rate is projected to reach 10,000,000% in 2019 - which would not only precipitate the total collapse of the economy but of the banking system as well.  

Clearly not all banks are created equal and a foreign bank account allows you to hedge against a collapsing local economy. 

Interestingly, online “banks” pose an even greater risk due to their lack of accountability to the individual. N26 and others routinely close hundreds of user accounts without prior warning or explanation. Clearly the idea of waking up to find your bank account - on which you rely to pay bills and receive salary - locked is a terrifying proposition. 

Instead, open a bank account abroad to reduce risk and minimise your dependence on one financial institution. 

6. Diversify Your Currency

Limiting your personal wealth to one currency is risky. Prices are not stable and are typically volatile in times of economic or political turmoil. Below you can see the GBP/EUR exchange rate over the last five years, which clearly shows the significant losses the Pound has had to endure. 

As uncertainty over Brexit grows, experts believe that the price will decline further.In this case vast personal fortunes can be eaten up by the mistakes and mismanagement from local government. 

To mitigate risk, it makes sense to open an offshore bank account which allows you to store some percentage of your wealth in another currency. 

7. Rent Or Buy A Local Property

Another advantage of a foreign bank account is that it can be used to rent or buy property. Most countries require a tenant or landlord to have a local bank account. In Germany for example, it is not possible to rent property without a comprehensive credit check which requires a bank account within Germany. 

In order to maximise freedom, it is essential that we are not bound to one geographic location. Instead, a foreign bank account allows you to take a meaningful step towards moving and living wherever you choose.

8. Get Paid More Quickly

For business owners a foreign bank account often makes sense because it removes the friction of international payments. Domestic wire transfers can be completed in just 24 hours, whereas international wire transfers can take up to five business days. 

If your selling goods and services it doesn’t make sense to wait 5 business days until the money has reached your account. Such a delay ruins your customer experience and clients will surely look elsewhere. 

Instead, think about where the bulk of your customers are based and register for a bank account in that jurisdiction. Not only will it significantly boost your cash flow but it will also reduce fees. 

9. Avoid Costly Transaction Fees

As you will be aware, Banks charge for outgoing and incoming wire transfers. Fees can easily surpass $30, making it incredibly expensive to transact with international recipients. According to NerdWallet the median fee for an international outgoing wire transfer is $45 which is simply ridiculous. 

In a time of cryptocurrency and the world wide web, sending and receiving money should be no more expensive than sending an email. Unfortunately, digital assets have not reached the mainstream yet so a foreign bank account is often the best alternative. 

Domestic wire transfers cost roughly half of the international equivalent, which can amount to a significant sum of money for businesses servicing a global client base. Open a bank account abroad to cut down on fees.

10. Guarantee Your Money’s Safety

Banks typically operate under a national scheme which guarantees the safety of your money. In the UK for example, the Financial Services Compensation Scheme (FSCS) ensures that bank account holders are guaranteed to receive up to 75-85k GBP even if the bank collapses. 

Using online banks, like Transferwise, this is not the case. These are regulated as Electronic Money Institutions and act as middlemen between the customer and the bank. In the event that the bank folds, the customer’s money is not protected. 

Additional Reporting For US Residents

Opening a bank account abroad often requires additional reporting, especially if the account holds a significant amount of funds. 

Therefore, a US resident with a foreign bank account holding more than $10,000 is required to report it to the US government. Additionally, income tax needs to be paid on earnings generated by the account. Keep that in mind if you earn interest for example, on a deposit in an offshore bank account - you will also have to pay federal income taxes.

Conclusion - Open An Offshore Bank Account 

As you can see from the extensive list provided above there are a number of excellent reasons to open an offshore bank account. 

Not only does it provide a greater level of freedom, by reducing your dependence on corporations and governments, but it also reduces your risk. Currency, economies and political situations have a tendency to deteriorate and a bank account abroad is an excellent way to hedge against such catastrophes. 

To learn more about opening a bank account abroad, make sure to download the ESelfKey Wallet and visit the bank accounts marketplace.