Offshore
Bank Accounts

Yes.

Generally British expats should follow the ABC rule which allows them to protect and build their wealth as detailed above.

The rationale here is to:

1. Ensure that your money is safe and secure. This may not be the case if you bank in the same country in which you work. For instance, the country where you work may have less well established regulations or the government and country itself may be unstable.
2. Ensure that you can hold currency in a multi-currency offshore account. This means that you can deposit earnings and withdraw funds without being subject to FX charges or extra banking charges for international transfers.
3. Allow for easy access to your funds no matter your location.
4. You are not based in the UK, therefore you should not leave your funds exposed to UK taxes in the UK. This is not to say you should not pay UK taxes if you become resident again.

The offshore bank account forms the secure base for wealth creation and the local bank accounts in your home and host country are maintained with relatively low balances for the payment of routine bills and expenses.

Even the ‘best’ international personal accounts offer ridiculously low rates of interest on balances in the current economic environment. 

Therefore, if you hold a lot of money on account you’re probably best advised not to put that money into a basic international bank account.

Other options available to you include: -

1. Using a bank which has an integrated investment capability.
2. Buying money market instruments
3. Dynamic cash management services from specialist firms in this area.
4. Investing in a zero-commission offshore bond through which you can access multiple deposits without opening lots messy online accounts.

Getting a mortgage as an expat can be difficult.  Only recently NatWest and RBS scrapped mortgages for expats.

Having a strong bank relationship can make the difference between success and failure when trying to get a mortgage as an expat.  If property purchase is high on your list of priorities, it can really help to pick a bank that operates within this part of the market and is facilitate a properly backed loan and a reasonable rate of interest.