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> Bank Accounts
> Offshore Bank Account - UK Guide
 In a nutshell
A bank account that is held offshore - i.e. in a different country/location to that in which you live.
Best Bank Account For
People looking to take advantage of tax breaks or those interested in keeping some of their money/assets offshore. May also suit frequent travellers, people that spend time living or working abroad each year and expatriates.
Special features
An offshore bank account can be held in a foreign currency if you so wish but is otherwise little different to a standard UK account and you may be able to find a full range of comparable products and services with this kind of account. You will also be able to easily manage and access your account. You may also find that you will have a linked savings account given to you at the same time. The fact that your bank account may be dealing in a foreign currency may give you some exchange rate advantages but the big advantage here is the ease of access you'll get if you use your account while you're abroad. Any transactions you make with a foreign funds offshore account in a relevant country may not generally be liable to the same costs and fees you'd have to pay if you use a standard UK sterling account. Any interest you earn on offshore bank accounts will be paid without tax deductions so you'll see a better return on your money with this kind of account.
What to look out for
You should be offered a relatively full range of banking services with an offshore bank account whether you hold it in a foreign currency or in sterling. In addition, you may also be offered the ability to make use of multi-currency services. You may want to approach one of the UK high street banks to open this kind of account if you are inexperienced in offshore banking - most offer this kind of service via their own offshore banking facilities which gives you a level of extra security. If you opt for an offshore account with a foreign provider in a remote country then you may not be given the same rights that you would get with a UK institution. If you do take advantage of the tax breaks given by offshore banking you'll need to check out your own position with an advisor/the Inland Revenue. Offshore banking as a whole isn't tax free for ever in all cases so you may be liable to some tax payments down the line.
You may have to meet certain conditions to open an offshore bank account - some accounts ask for a minimum balance or a minimum salary, for example. And, there may be other costs involved, so it's important to read through account terms and conditions to see what your actual charges will be.
Alternatives
If you're interested in the advantages of offshore banking then this really is your best option. If foreign currency is your area of interest, then you could look at a specific currency account such as a Euro or a US dollar bank account.
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