North Star Banking Guide

Offshore Bank Accounts vs. Investment Accounts

If you are considering opening an Offshore Bank Account, weigh up the advantages of an Offshore Investment Account with one of North Star’s partners:

• Access the expertise of the world's top investment managers and best performing offshore funds
• Experienced investment management and execution-only facilities
• Margin facilities, offshore settlements and clearing as well as top rated custody network for client assets
• Secure and fully functional online statement access
• Flexibility of currency diversification during periods of volatility
• Full access to global securities markets

Our consultants are on hand to answer your questions about offshore investment accounts.

So what are the differences between Offshore Bank Accounts and Offshore Brokerage Accounts?

Offshore bank accounts are managed by banks and feature traditional banking services which more easily facilitate access to the assets held in the accounts for everyday spending as well as receipt and distribution of funds.

Offshore trading accounts are managed by investment dealers. The primary advantages of offshore trading accounts when compared to bank accounts include being able to hold cash in various currencies as well as being able to hold and carry out transactions in stocks, bonds and mutual funds.

Like a bank account, facilities available include wire transfers and the issuance of banker’s drafts but they may also pay interest on cash balances. Many also feature useful access to money market funds in a number of currencies. Despite these similarities with their offshore bank account counterparts, trading accounts are unsuitable for day-to-day banking transactions and, consequently, many have restrictions imposed on the frequency of certain transactions including funds transfers.