Offshore Savings, Is There a Risk?

by Justin Weinger on September 13, 2012

There’s very little doubt that you need to save money, and that saving it under your mattress is no longer a viable option.  These days most people would agree that everyone should have a bank account.  Even those living paycheck to paycheck should have an account to at least cash their check.  While having a savings account is a no brainer, a puzzling question remains, what about an offshore savings account?  Chances are you have heard about them, but what are the benefits, and what should I look for when choosing the best offshore savings accounts?

As an American citizen and full time resident I always pay my taxes owed.  That being said, others do not always follow the same mind set.  It’s no secret that offshore accounts are often used as tax free havens.  Though I will say that the President has been making a big effort in collecting taxes on offshore accounts since he has been in office.  Another advantage of offshore accounts is their privacy.  Quite frankly, they are harder to access, harder to hack, and the people with the ability to view them is extremely limited.  Also, many other countries have less banking regulations than the U.S., meaning access to funds can be quite a bit easier.  Let’s also not forget about government risk, and foreign currency exhange rates.  By spreading money out in various countries you diversify and protect your savings!  With all the social unrest in Europe, the debt crisis, the U.S. recession, and turmoil throughout the rest of the world, I am more than happy to spread my savings around a bit.


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