Whether you’re looking to open foreign financial accounts remotely or in person and you’re on the hunt for the best offshore bank account interest rates, you’re not alone.
Unprecedented periods of negative interest rates, market uncertainty, and instability across formerly stable nations are contributing to a desire for higher interest rates through offshore bank accounts.
Unfortunately, finding the best offshore bank account with attractive interest rates is more difficult than you’d expect. In fact, most offshore banks don’t offer attractive interest rates at all.
That said, there are a number of offshore banks, spread across a small selection of offshore banking jurisdictions that offer surprisingly attractive interest rates.
In this article, we’ll explore which countries to consider, the risks, what to watch out for, and how to strategically open bank accounts so you can access the best offshore bank account with high interest rates.
But before diving in, don’t forget to download your FREE copy of the High-Interest Rate Guide. It shares important considerations about opening accounts in high-interest countries and will help you unlock the best rates possible.
Feel free to jump ahead to the areas most relevant to you by using the table of contents below.
Table of Contents
- What Are the Best Offshore Bank Account Interest Rates?
- How to Find the Best Bank Account Interest Rates Offshore
- What Are the Risks of Banking Offshore?
- How to Access the Best Offshore Accounts
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What Are the Best Offshore Bank Account Interest Rates?
If you’re from any one of the developed countries of the West, you’re probably familiar with interest rates between 0% and 1.5%. But, if you’re lucky, you might be able to find something around 2% with a long-term deposit or a part of a special “welcome” offer to attract new clients.
If that doesn’t sound overly enticing to you, it might be time to tap into geo-arbitrage opportunities and open bank accounts in offshore banking jurisdictions where available interest rates are much higher.
Doing so can result in high single-digit interest rates, even in your home currency. And, this might allow you to outpace the rise in inflation in your home country.
Plus you can almost always access your funds through various international withdrawal methods like offshore debit cards. Not to mention, many large offshore financial institutions have partnered with card issuers to offer a wide range of payment cards that include major credit cards.
We’ll discuss withdrawal options further below. But for now, let’s get back to interest rates. One point to consider is that it’s entirely possible for depositors to capture interest rates in the range of 3% to 7%, depending on the currency, term of deposit, and the jurisdiction where they bank.
Of course, there are important deposit factors and risks that depositors must consider when chasing the interest rates offshore. But, more on that in a bit.
To help you get a better understanding of what’s possible, we want to share an example of the best offshore bank accounts with high-interest rates that are available in a popular banking hub right now. So, here’s a look at the sort of interest rates and deposit terms that you could consider in Panama.
Best Offshore Account Interest Rates (Panama Example)
| wdt_ID | Term | US APY (High) | Panama APY (Average) |
|---|---|---|---|
| 1 | 3 Months | 1.30% | 2.00% |
| 2 | 6 Months | 1.70% | 2.65% |
| 3 | 12 Months | 1.90% | 3.25% |
| 4 | 18 Months | 1.90% | 3.50% |
| 5 | 2 Year | 1.90% | 3.75% |
| 6 | 3 Year | 2.22% | 4.00% |
| 7 | 4 Year | 2.10% | 4.00% |
| 8 | 5 Year | 2.20% | 4.15% |
Interest rates like these are available to pretty much anyone, as long as you have the right information, know where to look, who to contact, and how and where to open the best offshore bank account.
With this in mind, let’s take a look at where the best interest rates via offshore bank accounts are available today.
How to Find the Best Bank Account Interest Rates Offshore
Not surprisingly, to access the best offshore account interest rates, you’re going to look… well, offshore.
But, not all offshore jurisdictions are equal. Banks in certain countries may offer interest rates in the range of 1.5% to 3%, not much better than your home country. In these cases, it may not be worth the transaction fees, tax reporting complexities, or other considerations to even open an offshore bank account.
That said, banks in other countries might offer rates between 3% and 7%, which is significantly more attractive than what you’d receive at home.
Note: if you are after an offshore bank account with a credit card the options available to you can be limited. The same goes for if you are looking for offshore debit cards.
The key is knowing where the best offshore banks with higher interest rates are while also balancing the risks with the jurisdiction where you plan to bank.
With this in mind, here is a selection of offshore banking jurisdictions that offer interesting interest rates, while still offering suitable banking environments.
Needless to say, all countries present risks to depositors, so do consider all your options and the risks before making a decision.
Countries Offering the Best Offshore Interest Rates:
| wdt_ID | Country | Interest Rate (USD %) |
|---|---|---|
| 1 | Mongolia | 5.40 |
| 2 | Indonesia | 4.50 |
| 3 | Ukraine | 4.25 |
| 4 | Cambodia | 4.25 |
| 5 | Georgia | 3.50 |
| 6 | Turkey | 3.00 |
| 7 | Panama | 2.20 |
Of course, knowing which offshore jurisdiction to bank in isn’t enough to actually access the best interest rates. For that, review how to open an offshore bank account below. But first, let’s discuss the risks of banking offshore.
What Are the Risks of Banking Offshore?
Opening offshore bank accounts is a polarizing topic. The internet is littered with extreme opinions – often either for or against them.
Our team is more pragmatic. In fact, we see value and utility in both onshore and offshore bank accounts. Which banking strategies are best for you depends on who you are and your banking objectives. But, there are risks that everyone should consider before opening offshore accounts to reap the benefits of interest rates.
Here is a snapshot of some of the key risks to consider before opening an offshore bank account with the purpose of accessing the highest interest rates possible. We discuss each in detail below.
Risks of Banking Offshore
- Bank Risk
- Country Risk
- Cross Border Considerations
- Bank Business Model
- Account Opening
- Other Risks
Bank Risk
One of the most important factors is the stability of the bank where you are planning to open an account. There are a number of ways for you to figure this out, but our team suggests looking at the Liquidity Ratio and the Solvency Ratio of the bank.
Some depositors may think working out these two equations is overkill, but it’s really not. Five minutes to find the right numbers and calculate these two ratios could save you a tremendous amount of loss later on.
Of course, if you’re using the bank’s financial statements, you will be assuming that their numbers are accurate. And, even if those statements are audited, you will be assuming their auditors didn’t lie.
While this may seem overly skeptical, a certain level of polite skepticism is good when you’re looking to open accounts offshore in countries where you don’t have experience and don’t understand the local culture.
Country Risk
Banks may be standalone entities, but they operate within specific countries and economic systems. With this in mind, you should always feel comfortable with the economic outlook of a country before making a major deposit in the banking sector.
Now, it’s true that some offshore banks may be relatively independent of their home economy. But this is rare. For instance, most banks offshore engage in lending, whether through mortgages or commercial loans. While such debt products are usually only available to local borrowers, they can negatively impact all depositors, including offshore clients.
For example, if there is an economic downturn and non-performing loans increase across the banking sector, your bank could be impacted. Hopefully, your bank will be in a position to manage this. But, if not, your principal could be at risk.
Cross-Border Considerations
Typically, when it comes to opening an account offshore, most people are worried about whether or not they will be able to open a bank account based on the bank’s policies.
But, there is another cross-border consideration that you should consider. And that’s whether or not there could be tax implications for you as an individual looking to open a bank account offshore. Such implications could range from reporting requirements to taxes.
In all cases, the situation varies depending on the tax laws that apply in your country of residency (and citizenship), your ties to the jurisdiction where you plan to bank, and how the jurisdiction taxes earnings generated from your bank deposit.
To make sure you’re choosing offshore bank accounts and interest rates that best match your banking client profile, it’s important to familiarize yourself with these considerations first. This also might include speaking with a qualified advisor who’s familiar with your profile and objectives. This is particularly important for people hailing from countries with particularly harsh tax laws, like the US.
Bank Business Model
It’s also important to understand the business model of the bank that you’re considering. This can impact whether or not your money is going to be safe.
Fortunately, many offshore banks operate business models that are focused on generating fees instead of lending or high-risk investing. And while banking fees may sound like a bad thing, when it comes to bank business models, it could be exactly what you’re looking for.
Banks that generate a significant portion of their income from fees limit deposits or risk. Instead, for fee-based banks, assets are held by the bank, managed on behalf of clients, and the bank generates income by providing services and facilitating transactions.
Of course, there are very few banks that only engage in fee-based transactions. So, it’s important to understand all of the ways your bank makes money and the risks that this can expose your money to before opening accounts.
Other Risks
Before taking a look at the risks of opening a bank account offshore, we thought it would be important to highlight some of the other risks associated with offshore interest rates. These include:
- Currency risk
- Local inflation rates
- Economic & political risk
- Deposit guarantees
- Exchange controls & restrictions
- Alternative options (e.g. securities, short-term bonds, other investments)
Be sure to consider each of these carefully before you open an offshore account with a bank in a high-interest environment.
Account Opening
Finally, while many prospective clients may feel that unlocking the best offshore bank account interest rates should be a straightforward process, it’s not. That’s why the most immediate risk is the time and money you could end up wasting trying to open offshore bank accounts with the wrong banks.
To find the right offshore bank account (and access the best interest rates), you need to make sure the bank, branch, and banker are suitable for your client profile. That means ensuring the bank caters to foreign non-residents with client profiles like yours. Of course, they also need to offer the products you want and facilitate the kind of opening you’re after.
Let’s take a look at how you can actually access the best offshore bank account interest rates, including through remote account opening, right now.
How to Access the Best Offshore Accounts
Depending on your client profile, opening an offshore bank account can be an expensive and time-consuming nightmare. The key to getting it right is knowing which countries, banks, branches, and bankers to choose from. To do this, you need to know which are best suited to which clients. This step alone can save thousands of dollars in the process of finding the best banks to open a bank account offshore with.
Unfortunately, figuring out the countries, banks, and bankers that cater to certain client types isn’t as easy as picking up a phone or sending an email. Bankers are busy, may not speak your language, don’t have time to serve unqualified prospects, and don’t want to deal with foreign non-resident clients.
In the worst-case scenario, a customer service rep might respond and provide you with the process of how to open a bank account offshore. Then, after hours and hundreds in fees to compile documents, get authentications, coordinate postage, and apply for an account – you’re rejected. Or worse, you discover the rep gave you incorrect information, missed something, or simply wasn’t thorough.
These outcomes are not uncommon when prospects are trying to access the best offshore accounts with attractive interest rates. With this in mind, here are some helpful questions to ask when trying to find a suitable bank.
Unlock the Best Offshore Account With High-Interest Rates
Above, we shared the risks and considerations to be aware of. Now, let’s look at some of the important questions that should also be answered before opening accounts offshore with the intention of accessing high interest rates.
Offshore Bank Account Opening Considerations:
- Which offshore banks offer accounts to foreign non-residents?
- Which banks accept clients with your particular residency and citizenship?
- Does the bank offer the desired currencies?
- Which banks offer the best interest rates for the desired deposit terms?
- What are the banking fees associated with opening accounts at this bank?
- Are there any cross-border or tax considerations when banking in this jurisdiction?
- What are the risks associated with banking in this jurisdiction?
- What is the bank’s business model and the associated risks?
- Are depositors protected in case of a bank failure?
- And many more…
Fortunately, there is a fast and cost-effective way to answer all of the above questions without embarking on a massive scavenger hunt.
How to Access the Attractive Interest Rates With Offshore Banking Remotely
Opening an offshore account remotely is becoming increasingly difficult and rarer around the world. This is because of increasing compliance requirements, stricter AML and KYC rules, and pressure from international authorities. As a result, banks do more customer due diligence than ever before. This results in more restrictions on opening bank accounts remotely.
So, it’s no surprise that options for opening a bank account offshore remotely are becoming highly sought after. After all, being able to open an account online is faster and cheaper. Especially when you’re considering flying across the world for a 60-minute meeting.
Fortunately, our team helps GlobalBanks IQ members find and open bank accounts remotely in top offshore banking jurisdictions. This includes rock-solid international banks as well as lesser-known banks offering high interest rates with sound financials.
In most cases, opening the best offshore bank accounts remotely involves a phone call or video interview. Sometimes you will need to send documents for verification. However, we’ve even arranged for bankers to fly to meet IQ members in person. In all cases, the process of opening accounts is straightforward and easy. You just need to have the right information and know which banks to apply to. Of course, knowing which bankers to contact and which account opening strategies are best for you helps too.
Frequently Asked Questions
Below are two of the most common questions that we receive from people exploring the best offshore bank account interest rates. If you have any further questions, don’t hesitate to get in touch with us directly.
Do Offshore Bank Accounts Pay Interest?
Yes, offshore bank accounts pay interest. In fact, offshore bank accounts often pay higher interest than onshore bank accounts in many parts of the world. The important thing to remember is interest rates are higher for a reason. In short, higher interest typically reflects local economic conditions, which can involve increased risk to your deposits. So, before opening a high-interest account offshore, it’s important to assess each bank and country against your own risk tolerance.
Which Is the Best Offshore Bank Account?
The best offshore bank account is different for each person. This is because It’s important to choose banks that are financially sound, have strong corresponding banking relationships, and cater to your client profile. In other words, the best bank for you will be one that specifically accepts the combination of your citizenship, residency, source of income, deposit amount, transaction activities, and supporting documents.
What Is the Safest Offshore Bank?
The safest offshore banks are private banks that do not engage in retail lending activities. These banks are found in Switzerland, Liechtenstein, Singapore, and other top tier private banking jurisdictions. On the other hand, offshore banks in small offshore jurisdictions with limited regulations, weak security, and fragile correspondent relationships are among the least safe banking options to consider.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus, FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
Use this link to see how GlobalBanks Insider can help you successfully open accounts.
