Guide to Essential Money Tools

Banking Tools

Back to banking basics

Banking offshore is both easy and efficient. Debit systems, account-linked credit cards and international payment facilities are not only streamlined but competitively priced for the expatriate market. Those of you prepared to shop around will find a range of offshore banking services which make cross border, money transmission transactions simple and, for those who qualify, tax efficient.  For most expatriates the ideal banking arrangement involves setting up two offshore current accounts. The first would be a local currency account in the country where you are living which will manage your daily expenses.

The second account, the offshore account, should be opened in one of the international finance centres comprising offshore Britain – Guernsey, Isle of Man or Jersey – into which you would have your salary paid. This could be paid in sterling, euros or US dollars – or any other major currency for that matter. The choice of offshore bank accounts on offer expands each year, with new products coming regularly on stream from a rapidly maturing sector. For those expats who are still in their first six months of a spell living and working overseas, it will be hard to discern between the array of banking products presently available. An initial survey should be made on the basis of a realistic understanding of what your money management needs are right now.

And while not ruling out the prospects of a bright new dawn, focus on what you need today rather than what you aspire to tomorrow. Don’t be swayed by a dazzling showcase of extra flavours if what really suits you is plain vanilla. Having said that, there will be many expats out there whose banking and investment objectives will already be mapped out in enough detail for them to sign up to a more sophisticated package of banking facilities, and, if this is your circumstance, too, on no account accept plain vanilla. Here are some tips. To begin with, before selecting a bank, take a step back and ensure you are confident the jurisdiction in which the bank is located. Pay special attention to the local regulatory structure and find out what well-known international banking names are situated within this particular offshore centre.

When enquiring about a bank which has caught your eye, research its history and find out who is its ultimate owner. Ask about staff turnover, particularly if you are seeking a banking relationship which involves taking advice on investments. A key to any successful relationship with a bank is ultimately down to the relationship you, the customer, form with your bank manager, and that needs time and continuity to develop.

Consider at the outset what precisely you need from offshore banking. Is this just a place to park some cash? Will it provide a home for all your savings? And do you need an active money transmission service which will be cheap and efficient to run? Are you looking for a bank which can also handle surplus monies you may wish to channel into appropriate investment packages? Once you’ve understood your needs, take your time to discover as much as you can about whether the bank you are considering offers the accounts and services which will truly support your requirements.  The means to manage money has to be high on any list of priorities. But for an expat, living far from the nearest bank branch, the question of service is particularly important. You will need to know that instructions, in all probability conveyed online, or over the telephone or by fax, will be carried out quickly and efficiently. You will also want t­o know that you are a valued customer, not just an account number. Banks increasingly understand the importance of good communications among the expatriate clients and have taken steps accordingly, putting in place a level of service whereby customers are routinely on first-name terms with the bank’s personnel. Ease of communication for any expatriate living miles away from the home of their bank account is now a bottom line when it comes to effecting money transmission.

Likewise, relationship management is no longer just a cliché, but is seen as a distinct advantage in the competition for customers. Online and telephone banking systems have been established with confidentiality codes in place, so that offshore banking customers can, from the comfort of their own desk, check balances, instruct money transfers, pay utility bills, make payments to third parties, as well as order foreign currency and buy and sell shares with complete security – not bad for a practise that has only really taken off in the last few years. While online banking can be managed at any time, day or night, sometimes only a direct conversation will do, and this is where 24 hour telephone banking comes into its own. Check the length of opening hours your would-be offshore bank’s call centre is offering – not all are 24 hour, but some do operate extended hours which may fit in with your particular time zone.