Alternatives to Savings Accounts [High Yield + Offshore]

Alternatives to savings accounts generally lead prospective customers to certificates of deposits (CDs), treasury bills, or high-yield money market accounts.

But in this article, weโ€™re going to be taking a look at a completely different option: international and offshore accounts.

Weโ€™ll explain why normal individuals should consider international and offshore accounts below, along with a few countries worth considering.

Of course, if you want to start opening offshore accounts now, you can use our library of free articles to start right away. These articles include detailed country reviews, guides to specific services, and even information about how to access your money overseas with an international debit card.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. Alternatives to Savings Accounts
  2. Other Types of Bank Accounts
  3. Frequently Asked Questions
  4. Ready to Explore Your Options?

Alternatives to Savings Accounts

Alternatives to savings accounts include any account that offers a high return and helps depositors fight inflation. The most common options presented include certificates of deposit, money market accounts, and treasury bills. However, offshore and international banking present a viable alternative with higher returns and greater security.

That said, not all offshore banks are created equally. Likewise, many of the popular offshore banking jurisdictions are better off avoided. Thatโ€™s why itโ€™s important to conduct research on the specific bank or country before you decide where to open accounts.

Additionally, if you are looking for alternatives to savings accounts, it’s likely because you want higher returns. So, you should explore each bank’s account and investment options before opening.

Of course, itโ€™s also important to consider whether you will be able to open accounts with the jurisdictions you choose. In most cases, offshore banks have very specific clients that they cater to. This can result in certain nationalities and residencies being excluded.

However, if you find that you are being excluded by offshore banks due to your profile, itโ€™s likely because you are approaching the wrong banks. In other words, there is nothing wrong with your profile, just with the banks you are trying to open with.

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Other Types of Bank Accounts

Certificates of Deposit

A certificate of deposit is a term account that commits to paying the account holder a guaranteed interest rate over a set period of time. In general, depositors can choose between several months to several years. Of course, the specific terms and rates vary depending on the country or bank you are considering.

Money Market Accounts

Money market accounts are considered alternatives to savings account. However, they are similar while offering higher interest rates than standard savings accounts. Additionally, money market accounts tend to have similar functionality to checking accounts.

Checking Accounts

Checking accounts facilitate day-to-day banking activities, including deposits, withdrawals, debit transactions, issuing checks, and more. They do not offer higher returns than savings accounts, but they do offer more flexibility and functionality.

Offshore Accounts

Offshore accounts are generally located in international and offshore banking jurisdictions. That said, any account outside of your country of residence could be considered offshore. Offshore accounts tend to offer higher interest rates and a wider range of services. Additionally, offshore banks tend to be more conservative financially and engage in lower-risk investments and less consumer credit.

Frequently Asked Questions

Below are three of the most common questions that we receive from people looking into alternatives to savings accounts. If you have further questions you would like answered, donโ€™t hesitate to get in touch with us directly.

Are Savings Accounts a Waste of Money?

Savings accounts are often described as a waste of money because the returns offered do not keep up with inflation. As a result, many people hold a limited amount of money in savings accounts and elect to hold larger deposits in alternatives to savings accounts. These alternatives can include higher-yield accounts, like certificates of deposit, money market accounts, or treasury bills.

What Can I Use Instead of a Savings Account?

Instead of a savings account, you can use higher-yielding account types to generate a return on your money. These options include money market accounts, certificates of deposit, treasury bills, or any other account that will enable you to keep pace with inflation.

Ready to Explore Your Options?

If you would like assistance navigating alternatives to savings accounts at home or abroad, we can help.

You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.

But, if you want a 100% personalized account opening service that taps into our teamโ€™s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.

Of course, if you have any questions, please contact us directly.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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