Jo M. Watson Bowman Offshore Bank Transfers on Ten Tips

Bowman Offshore Bank Transfers on Ten Tips on Offshore
Savings
Here’s a guide through the world of offshore savings and a recommended approach to protecting your
nest-egg against inflation.
1.
Protect against inflation – The real return savers actually make from interest rates is the
actual profit you are left with after taking the effects of the currency’s inflation into account.
Inflation is the rise in prices for goods and services over a period of time – usually calculated
annually. When weighing up a rate offer, deduct the known inflation percentage to find out how
much you’ll actually end up. Advisers also tell savers to include the impact of tax when estimating
a potential profit to ensure an accurate projection of likely returns.
2. Protect against bankruptcy – Following a period of intense merger activity within the
offshore savings sector, all savers should check that their accounts are not spread amongst
deposit-takers owned by the same parent institution. If so, only a portion of your overall savings
nest-egg may qualify for compensation if a deposit-taker goes to the wall.
3. Protect against lack of compensation rights – We’ve seen the collapse of two Icelandic
banks in offshore Britain (Landsbanki Guernsey and Kaupthing Singer & Friedlander Isle of Man)
so we know the worst does happen to some savers. It is essential to always interrogate a
jurisdiction’s financial compensation scheme before putting a penny of your hard-earned cash
with any of its financial institutions.
4. Protect against ID fraud – It is imperative you comply with identity protection procedures
initiated by your deposit-taker. Your part of the bargain in the fight against fraud is never reveal
passwords and security codes to anyone. If savings accounts are managed online, never leave a
computer screen bearing the details. Do not fall victim to an email scam asking you to re-register
your personal details. Real financial institutions would never compromise their customers in this
way.
5.
Protect against adverse terms and conditions – Always read the small print of any terms
and conditions when opening an account. Look out for penalties in the form of loss of interest
against withdrawals made outside the notice terms and ways in which you could miss out on
introductory, or loyalty bonuses.