An offshore, or overseas, bank account is one that you have in a country you don't reside in.
They allow you to make and receive payments, hold money and set up savings and investment accounts in multiple currencies.
Offshore accounts, also known as offshore bank accounts or offshore savings accounts, can make it simpler to manage your financial commitments across multiple countries and regions. They can be useful if you need to make, or receive, regular international payments and transfers.
Most expats have a bank account in their home country and another account in the country they're living in. Many also consider opening an offshore account, as this can be an effective way to save, invest and manage money while abroad.
Reasons to open an offshore account include:
you're already living or working abroad
you're planning to move abroad, for work, or to retire for example
you're an international assignee and move countries regularly for work
you make frequent trips between countries for business
you get paid in a foreign currency, for example, for freelance work
you own assets abroad such as investments, or property
you have family members abroad who you support financially, for example, for a child's school fees
While each offshore account will come with different features and benefits, here are some of the common ones:
potentially tax-efficient savings and investments in various currencies, although any tax benefits would depend on your circumstances
hold money, make and receive payments in multiple currencies
manage foreign exchange
access international expertise and investment advice
keep your money in a secure and central location, connected to your local accounts
keep the same bank account every time you move
They typically also come with regular banking features, such as a debit card and online and mobile banking.
While offshore accounts could provide a tax-efficient way to save and invest, you need to disclose your income to any relevant tax authorities and declare any interest earned on offshore accounts.
Some offshore accounts may have a monthly fee, or may charge for international transfers. Others don't. For example, the HSBC Expat Bank Account has no monthly fee and transfers between HSBC accounts are free.
Other fees and charges may apply so you should read through the terms and conditions before opening an offshore account.
Offshore accounts are not protected by the Financial Services Compensation Scheme (FSCS), which protects savings held with authorised UK banks and building societies, up to £85,000 per person.
However, some offshore accounts are covered by other schemes. For example, the HSBC Expat Bank Account is covered by the Jersey Bank Depositor Compensation Scheme, which offers protection for eligible deposits of up to £50,000.
Based in Jersey, HSBC Expat provides expat bank accounts with many of the benefits listed above.
Please remember that the value of investments, and any income received from them, can fall as well as rise, is not guaranteed and you may not get back the amount you invested. This could also happen as a result of changes in currency exchange rates, particularly where overseas securities are held or where investments are converted from one currency to another. We always recommend that any Investments held should be viewed as a medium to long-term investment, at least five years.
Banking offshore may have potential tax benefits for you. However, tax rules differ from country to country. If you're unsure about your personal tax obligations, you should seek professional advice. It's your responsibility to ensure your personal tax obligations are met.
Whether you're moving abroad, are already there or have financial interest internationally, we'll help you manage your money.
Offshore accounts in multiple currencies.
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