Sunday, March 19, 2006

Why offshore bank account should cost more

The following principle is clearly seen in this example – if you are a resident customer, the bank should take no fee for the account maintenance. If you are an offshore customer, there is $50 fee per month. It is not important how the bank calls this fee (account monitoring fee, maintenance fee or fee for not sending your account reports to your address), anyway, it is a fee for the possibility and necessity to save much with the help of the offshore bank, therefore you have to share more with the bank.

I will in short explain the situation to those who have heard the following news:
Recently there was a glitch in the Scotiabank computer system that erroneously charged some local BVI business accounts a monthly fee. For example, one local businessman got worried when he saw a $150 debit on the monthly statement of his firm.

This fee is meant for offshore accounts – for customers who are working on tax planning, avoiding and saving some money on taxes. Offshore accounts in offshore banks historically have been charged $50 each month for the accounts.

Of course, the wrongly-taken fee was reversed to customer after the error was noticed.

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