banking - What's the Point of an Offshore Bank Account?

Sigh - when I'm asked what I do for a living I'm then asked the 'isn't offshore banking illegal?' question - having answered that I'm usually asked 'so what's the point of an offshore bank account?' - because having pointed out that there is nothing unethical or illegal about opening an account offshore and that not everyone who 'goes offshore' does so to evade taxation, people seem to wonder why on earth anyone would want to bother with an offshore bank account in the first place! It's funny how the offshore world still seems to be synonymous in many people's minds with shady dealings, fugitive tax exiles and crime - when in actual fact by simply opening a bank account in a country other than the one in which you're currently resident - like you might do if you own a holiday home abroad for example - means you've effectively 'gone offshore!' So if you're wondering what's the point of an offshore bank account and whether you could actually effectively use one, read on to find out more... As stated, an offshore bank account is one opened in a jurisdiction other than the one in which you're currently resident - although usually one considers an account opened in a low tax jurisdiction to be a 'proper' offshore bank account - so the Cayman Islands or the Channel Islands are more likely to be synonymous in people's minds with offshore banking than Spain or Mexico for example. But in actual fact, Spain and Mexico are just as likely to be used by non-residents for banking purposes as any because many people open accounts in countries where they have a second home, where they holiday frequently or where they regularly work. Just think about it - if you're considering buying real estate abroad or you often travel to a given country for work or leisure breaks it may make sense for you to consider opening a bank account locally so that you can set up standing orders and direct debits for things like your water or electricity supply for example, or so that you can have funds available for a local transfer when you want to do a bit of shopping or sightseeing. Other people expatriate and go to live or retire abroad and some of the countries they choose have different banking laws or rules and regulations that restrict the individual so much that they decide to keep the majority of their money elsewhere where they can access it easily for example - or where they can reduce the amount of taxation they have to pay out on interest earned maybe. Some people who live and work abroad end up in countries which are politically or economically unstable - for people such as this it makes no sense to keep their money in a local bank account and in a local currency no matter how much interest they are offered! Again, in such an instance as this it makes far more sense to have an offshore bank account that is safely protected by international banking insurers and strict local laws in a robust and respected jurisdiction like the Isle of Man for example, rather than in a country where austerity is a possibility or the closure of XYZ Bank Limited would result in the loss of all an individual's funds with no chance of recompense. So, if you fall into any of the above categories it's highly likely that an offshore bank account could be of benefit to you. However, you have to consider your options relating to which jurisdiction, which bank and which offshore bank account type before you move your money, and remember - non-disclosure of offshore funds could land you in a whole heap of trouble! Get advice if you want to get it right. Rhiannon Williamson writes about offshore saving and investing as well as offshore banking and her website http://www.shelteroffshore.com/ is full of simple, accessible and useful tips, tricks, articles and reports about making the most of your money and protecting your assets and your financial future. Article Source:http://EzineArticles.com/?expert=Rhiannon_Williamson banking - Is Online Banking Safe? Today, people are aware of the concept of online banking offered by several banks, of which some are newly opened banks and some are expansions of a well-established banking company. But one question remains to be answered, is Online Banking safe? Despite the cut-rate deals offered by most Online Banks, numerous customers are questioning themselves about the safety of Online Banking. Most of the newly established online banks inform their customer that they have the advanced and secure technology to insure their client's accounts with total confidence and give the assurance that their security is the one that you can trust. Despite of all these assurances given by these Online Banks, most customers are still worrying, because their confidence is already shaken by computer viruses and hackers. Even a very established bank suffers online security malfunctions. The very reason why customers fear online is because if, in fact, their account was compromised, it could be a life-altering virtual nightmare of stolen identity and depleted funds. As the years pass, these incidents are rarely reported and have not reached a big epidemic. Unfortunately, the few occurrences have received a lot of press. For example, in May of 1999 the online bank Egg upgraded its website, and with unexpected turn of events, the newly installed security measures scrambled the online session protocols which allowed users to view banking details of other customers. Also in November of 1999, the Halifax banks had to suspend all online banking services due to the bug that backfired while it was being fixed, and customers were also able to view the accounts of other customers, a total invasion of privacy. The Barclays, which claimed to be the largest online bank in the United Kingdom, had to shut down their website at the end of July 1999 because their customers were serving bank statements by other clients. These incidents seems to have one thing in common, their advanced and secure technology opened up when they were upgrading the software. Here is a big problem to be considered in online operations, complex e-banking or online banking's test on its reliability and security are mostly done on live websites or should we say, in the wild. As these banks rush to be able to get online, they rarely test for the worst thing that may happen, as thousands of customers try to log on and at the same time, numerous crackers and hackers test the defenses of the web site. Here is one more thing to be considered, who will pay for the emptied accounts which were raided by fraudsters? Most banks rely on a small print that tells the users they are responsible for their data and money unless they alerted the bank for any problems. Most customers were not satisfied with this policy, so most online banks gave a word that they will pay up the lost money unless the customer gives a fraudulent report regarding their accounts and negligence of customer. Of all the given incidents, now it's up to you to judge on the safety of online banking. You have to think twice before you start saving or investing you money on online banking services.