Banking - ‘Traditional & Challenger’
A good bank account is at the core of all financial planning, without one how do you receive the money you’ve earned from your job or from the sale of assets you’ve bought, been gifted or inherited? A bank account is so important for our every day buying needs, yet it has become increasingly difficult to get one these days with high street banks becoming more and more choosy, often increasing the opening balance requirements as a way of seeking out only the wealthy HNW clients. They are also asking for more and more information and documents to satisfy the legal and regulatory requirements that are needed to tick all of their account opening boxes.
Enter a new breed of banks, often referred to as the Challenger or online banks – they have no branches for you to visit and yet they operate efficiently with much fewer staff members which makes their overheads a fraction of those of traditional banking brands. Everything is done electronically allowing them to operate from a much lower cost base which is reflected in lower charges to account holders. The Challengers offer a broad range of facilities and deliver solutions with quick turnaround times.
You might not be familiar with all of the banks out there and may not have time to research them all but seeing that a banking relationship can last a lifetime it makes sense to do so. Be sure to find out what type of accounts they offer as well as the range of investment and credit services. Choosing the right bank is one thing but getting approval and having the right suite of banking products for your needs is another. Be it a Traditional or a Challenger bank that you partner with doesn’t really matter, as long as they are the right bank, managing your money will be so much easier and more efficient.
Offshore/Online banking
An offshore/online bank account is one that you open in a country you don’t reside in. These bank accounts allow you to hold money and set up savings and investment accounts in multiple currencies, as well as make and receive international payments or transfers.
If you are living and working abroad, you are most likely to have the need to open an offshore/online account. Offshore/online banking is a great way for anyone looking for an effective way to save, invest and manage money while they are abroad. You can benefit from an offshore account if:
- You’re living and/or working abroad
- You’re an international assignee and move countries regularly for work
- You get paid in a currency different from that of your home country
- You have international assets, these may include investments or property
- You have family members in different countries
What else do you need to consider?
Tax
When moving to a different country, or opening an offshore or online bank account you need to be aware of any tax consequences that follow.
Costs
If you’re living or working abroad, you may need to carry out your everyday banking transactions in multiple currencies. Using your home country’s bank account might not be feasible and could also be expensive. However, most international bank accounts also come with charges attached to international and currency transactions.
Other benefits can be
- Online capabilities - local and international movement of funds
- The ability to hold & transact Multiple -Currencies
- Increased asset protection
- Higher investment returns & higher interest rates offered
- Greater liquidity & increased diversification
- Financial confidentiality
To make the most of your international banking options make sure you review the small print and seek advice to ensure you end up with the right accounts for your needs.
Protect Your Savings
In case of a sudden illness or accident, you don’t have to utilise your savings to pay the high price for medical treatment. Surgery and room costs in Hong Kong’s private hospitals can easily reach US$100,000 for major heart disease and cancer. This can be covered by the insurance plan, should you have coverage in place. Your savings should be used for their intended use, such as buying a home, funding your children’s education and retirement.
ANDREW CASE STUDYThe cost of quality healthcare is at a premium. We have close partnerships with market-leading international healthcare insurance companies that offer sustainable products making sure that we can match the required level of cover to your budget.
We don’t charge you for our services, so premiums are the same as going directly to the insurance company. What you get is advice on the plan’s benefits and coverage limits that make sense to you and your financial situation.
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