Based on an article by Luigi Wewege 

Everyone knows that a savings account is a safe approach when looking for a secure investment, especially when this account is opened in one of the top offshore banks. Such an account allows you to organize your finances and reach certain goals, setting aside funds and earning interest along the way. 

This can also be done with a domestic bank account, but there are very good reasons why to open a savings account abroad. Does it sound too complicated? Mundo works with some of the best offshore banks in the world and with excellent banking experts that can help you open an account in a foreign bank. But why a foreign savings account is better than a domestic one? In this article, we present some ideas that are worth considering. 

1-Set aside funds for short and long term goals

If you have specific goals that you want to achieve, e.g., gathering the cash for a downpayment on a house, or buying a property for its full price, a savings account can be useful. To achieve these goals it will be necessary to use a part of your income and setting aside funds from this income to your foreign account can be a great strategy.

You may ask why is this different than a domestic account so far? Usually, the temptation to withdraw money from a foreign account is much lower than from a domestic one. This will help you reach your financial goals faster and easier and to consistently increase the balance in your account. 

2. Create a contingency fund for emergencies

Whatever your life circumstances may be, nobody is safe from contingencies such as confiscation, lawsuits, bankruptcy, etc. Imagine that your company goes bankrupt or that you lose your job. Now imagine having enough savings to support yourself for 6 months or even a year. Even if it takes some time to get back on your feet, you will have available cash to maintain a decent lifestyle while you catch your next great opportunity. 

A foreign account is also an advantage in this case as you won´t be tempted to withdraw funds unless it is absolutely necessary. You can choose to set up automatic transfers from your domestic account to your foreign one, thus increasing your funds without much thought or effort. When you decide to use this money, then it will be easy to transfer it back to your country´s account or to withdraw it or use it through a debit card issued by your offshore bank. 

3. Secure an income for your retirement years

There is at least one thing many of us learned during the coronavirus pandemic: employer-provided or government-provided pension funds may not be around (or may not be sufficient) to cover your expenses during your retirement years. What is worse, if something should happen to your retirement funds, you may lose all the money you planned to use after your working years are over. These days it is vital to properly establish retirement funds and diversify them in order to protect your financial future. 

4. Build an education fund for the children

If buying a property or creating capital for your retirement years is not your main concern, this does not mean that an offshore savings account won´t be useful. If your priority is your children´s education, you can use a savings account in the above-described way in order to gather the funds to pay for their tuition. College education is extremely expensive these days, which means that the best moment to start saving is right now. Even if your children get scholarships in the future, there will surely be costs to attend and your offshore funds can help you face these expenses without compromising your lifestyle. 

5-Gather the cash to acquire a vacation property

If what you truly want is to get a second property, e.g., a vacation house, you need to start saving as soon as possible. Thanks to your offshore bank account, you can reach the right amount much faster and probably gather enough so you will need less or no financing. 

This approach can also significantly simplify the process of international transfers for real estate purchases. If you want to buy a property in the same country where your account is established, then you can remit the funds to the seller in a much easier way. 

6. Protect your assets

Anyone can be sued, even if they don´t work in a high-profile profession. What would you do if this shall happen? Did you know that your country´s court can seize your assets and freeze your accounts during the whole process, which, by the way, can be very long?

One of the best advantages of offshore accounts is that they are protected from foreign judge´s rulings. Domestic courts can´t seize the assets that you hold in a foreign bank. Thus, if things get ugly and your domestic assets are seized, you will still have your offshore deposits. This can make a huge difference. Your offshore funds may be what puts a roof over your head or food on your plate while you define your rebuilding strategy. 

If you have a minimum deposit amount to set up your account, don´t get discouraged. With discipline and diligence, you can get some of the best interest rates in a not-so-distant future. 

During this article, it has become clear that an offshore savings account is the ideal way to increase funds for long and mid-term goals. Once the time comes when you need to use your funds, the balance will be significantly more than what you would have gotten from your domestic account. You will certainly be satisfied with yourself in the knowledge that you have chosen the right jurisdiction to grow your assets.