In the wake of COVID-19 and the travel restrictions the pandemic caused, there was a significant decline in the demand for international bank accounts. What was once a booming industry has suffered catastrophic setbacks over the long years of COVID. However, as the world starts to reopen and guidelines and restrictions are lifted, the number of individuals opening international bank accounts in the UK is soaring.
If you are living overseas, planning to emigrate, or expanding your business interests while you remain at home, setting up an international bank account is a fantastic way to manage your money flexibly and conveniently across the globe. Here we will explore the reasons behind why there is a growing demand for international accounts.
Multicurrency Banking Benefits
As someone who either lives and operates a company in different regions, planning to emigrate, or has one or more primary residences, having your bank account in one place while working across various countries is a major advantage. A key benefit of international accounts is the ability to hold an account and transact in several currencies. This enables you to easily manage and mitigate risks linked with forex fluctuations.
Multicurrency accounts allow you to quickly transfer money across between accounts with no additional charge (so long as they’re within the same bank). Money Transfer Comparison have a guide on the best international bank account to choose from. They can help those planning to move to the UK, immigrants emigrating to Europe, as well as immigrants emigrating to other parts of the world.
Benefit From Foreign Exchange Services
Every country across the globe has its own banking regulations and laws. Should you keep your cash in a central international account, this helps you avoid any hassle of opening several accounts, as well as trying to send money abroad through bank accounts that are subjected to different financial laws and fluctuating exchange rates.
It’s also pricier to transfer money overseas generally. Therefore, it makes sense to have quick, easy, and flexible access to foreign exchange as and when required. Another benefit of an international account is that you are maintaining one relationship with your personal banker, regardless of where you move to on the planet.
Tax Advantages
Banks that concentrate on international accounts have distinctive knowledge and proficiency in collaborating with individuals from all sorts of countries who either have their companies and home bases in different countries or travel between several regions.
These specialists can provide advice on the most effective ways to oversee your money while living overseas. They can also advise on offshore investment opportunities, alongside other advantages of international banking you may not be aware of.
Easily Access and Transact Funds Digitally
Another reason why there is a growing demand for international accounts in the UK is the ability to access your money 24/7. Having a highly personalised level and round-the-clock service ensures you can instantly meet any financial obligations or international opportunities.
If you live overseas, travel, or work in another country, having an international account in the nation where you get paid, take care of paying bills, or spend money is not just beneficial, it’s a need in some instances. In other scenarios, it makes life that little bit simpler. Because you can access your account 365 days of the year, you’ll have a consistent point of contact should you need to get in touch and discuss any issues.
Efficient Tax Planning
One of the reasons why international bank accounts are surging in demand is the chance for effective inheritance and tax planning. The advantages you’ll gain will depend on several factors, such as your country of residence.
Tax planning is the legal process of sorting your affairs to minimise tax liability. When conducting business overseas or if you plan to live outside the UK, there are experts who can assist you with ways to save UK and non-UK tax, as well as the tax complexities and aspects of cross-border transactions and situations.
Asset Protection
Holding cash out of your home country is an effective method for protecting your assets. You may already be aware of the scenarios of ex-pats who were blocked suddenly from taking money out of their bank accounts. In lots of countries, the banking system has fairly unsound and feeble protection to account holders’ assets and wealth. This can pose as a serious risk to companies themselves.
Thankfully, having an international bank account can provide reassurance in the sense that your asset is safe, particularly when opening an account in such a highly regulated and transparent jurisdiction, with strong privacy laws.
Security
One pull factor for thousands of international bank account holders is their level of security. Countries with unfavourable and uncertain economic climates, as well as continuous risks like high inflation, seizures, and bankruptcy can result in insecurity for your bank account.
Unlike a bank account that you open in your home country, an international bank account offers a higher level of safety, which means your money is well-protected against such instances.
International bank accounts (also known as immigration-friendly bank accounts or multicurrency bank accounts) are those provided by banks for individuals who are either permanently residing outside their home country or moving frequently.
While COVID-19 halted the world for a brief period, as we move through 2022, there continues to be a growing demand for international accounts, both for immigrants in the UK, and British internationals moving overseas. This article shows the benefits of these accounts and why you should consider exploring your options in 2022 and further ahead.