Protection against Inflation

Inflation is always increasing as economic stimulus plans are carried out very often among largest worldwide economies. And despite what politicians might say, governments cannot keep spending money by borrowing and printing forever. Some day their credit will run out. All of this spending, though, is likely to result in a great deal of inflation.

 Attractive interest rates

This means that finding good places to put your money is a wise idea. Offshore bank accounts often give higher rates of return than onshore banks. Often you’ll also find that interest rates abroad are far better than domestic ones. Yes, it might be surprising that there are countries where the central bank has not set interest rates artificially low, and they are thus closer to market rates. As a result, you can preserve your principal and beat inflation with the help of offshore banking.

Currency Diversification

Some banking institutions allow you to keep your funds in various currencies so that you could diversify your currency exposure against the inflation. This may be a great hedge towards troubled currencies like the U.S dollar or the Euro, or it could let you take advantage of currency fluctuations. One banking account in Hong Kong as an example can allow you to hold your money savings in dozen unique currencies all at once in one single account.

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