Barclays

Offshore banking guide

The benefits of offshore banking

An offshore banking facility can provide a number of benefits including:

• A location that you might perceive to offer greater political or economic stability for your money
• The reassurance of banking in a highly regulated financial market
• The convenience of international online and telephone banking
• Extra services that your local bank might not be able to offer
• The facility to hold multiple accounts and transact in multiple currencies
• Financial management and tax planning opportunities
• Access to offshore savings and investment solutions that can help increase and protect your wealth.

Choice of offshore bank accounts

The basis of all our offshore banking services is a Barclays International bank account. It is available in sterling, US dollars or euros and can come with a credit¹ or debit card.

The online and telephone banking facilities enable you to control your offshore finances at any time from anywhere in the world².

When selecting an offshore bank account you'll first need to choose from one of our four banking services, according to the service level you need.

Relationship Manager Service

The Relationship Manager Service is our most tailored offering. You will have a Relationship Manager and support team that will provide services to match your circumstances and financial goals, such as:

• Wealth management
• Specialised borrowing, investment and mortgage services
• Sophisticated savings, credit card and international finance options.

To qualify you must deposit and maintain a balance of £50,000 or more (or currency equivalent) in cash or investments with us; or, if you have come to live in or are moving to the UK, deposit an annual individual gross income of £150,000 or more (or currency equivalent) into Barclays international bank accounts.

iBank Plus
iBank Plus can be ideal if you frequently make or receive international or multi-currency payments. The services with iBank Plus include:

• Discounted international payments
• Currency exchange services
• Borrowing in a range of currencies
• The opportunity to place capital in structured deposits and notes
• Discounted medical insurance
• Worldwide travel insurance for UK clients.

To qualify you must deposit and maintain a balance of £10,000 or more (or currency equivalent) in cash or investments across your Barclays international banking accounts. With iBank Plus there is a monthly fee of £10 (US$16.50 or €14.50).

iBank
iBank provides a comprehensive offshore banking solution for just £5 a month (or currency equivalent). The benefits include:

• Access to products and services that can include debit cards, savings, loans and mortgages³
• The ability to manage your finances from different countries².

To qualify you must deposit and maintain a balance of £5,000 or more (or currency equivalent) in cash or investments across your Barclays international banking accounts.

Savings

We offer a broad range of offshore savings options. 

Structured Deposits
These are fixed term deposits frequently of three to six years. They would be linked typically to an underlying index or commodity, and offer the reassurance that your original capital would be repaid at the end of the term. However, if you withdraw your money before maturity you may get back less than you invested.

Treasury Deposits
These offer attractive interest rates for savings of £10,000 or more.

Managed savings
This is a savings service tailored to meet your liquidity, security, yield and access requirements. Products can include fiduciary deposits, mutual funds and structured products.

Investments

Our offshore investments are tailored to satisfy a broad range of requirements around risk, activity, growth, income and currency denomination.

Barclays MultiManager
This is our managed investment service in which your funds are actively managed within a single portfolio. This service offers:

• Access to some of the world's finest investment managers in a single fund
• A choice of five diversified strategies designed to maximise potential return for your chosen level of risk
• Economies of scale. As one of the largest multi-manager providers in Europe, we are able to use our considerable resources to negotiate competitive terms with investment managers to the benefit of our clients
• A blend of managers combining different styles and approaches designed to generate more consistent returns
• A service in which we take the time to truly understand and act on your investment objectives and risk profile
• Tax-efficiency, for example this might encompass buying and selling investments within your portfolio with no capital gains tax³
• A service that is available in US dollars, euros and sterling.

The minimum investment required is £25,000 (or currency equivalent).

As with all investments, the value of the multi-manager portfolio can fall as well as rise.

Global Beta Portfolios
Global Beta portfolios are structured to offer you a globally diversified portfolio of exchange traded funds (ETFs) in a fund-of-funds structure. They provide a transparent and relatively cheap form of investment.

Choose from five different portfolios of exchange-traded funds (ETFs). Each one is an index-tracking investment fund traded on stock exchanges.

Available with a minimum investment of £25,000 (or currency equivalent), Global Beta Portfolios offer:

• Dynamic asset allocation. Our global research team selects a mix of assets designed to create additional return potential
• A choice of five diversified strategies created to maximise potential return for different levels of risk
• Access to Exchange traded funds (ETFs) that are intended to replicate an index rather than to beat the market. This can help to allay concerns of potential underperformance
• Portfolios available in US dollars, euros and sterling.

The value of indices can fall as well as rise so you could get back less than you invested.

Structured notes
These typically are available for a period of three to six years, and have the extra flexibility of being traded on a secondary market, however, you may not get back the amount invested. They can track the performance of indices, foreign currencies, interest rates, commodities and assets. Structured notes are issued by financial institutions which if they fail to repay what is owed you may get back less than you invested or nothing at all.

Loans and mortgages

Loans and mortgages can be placed offshore as part of your financial planning. Our specialist mortgage team can provide the following mortgages:

• Residential. For buying a property in which you, or a member of your family, will live.
• Buy-to-let. If you are buying a UK property to let out to tenants, you will need a buy-to-let mortgage.
• International investment. This can be for buying an investment property or second home.
• UK student mortgage. If you are coming to the UK to study, this could help you and your parents buy a property.

We can offer these mortgages in a variety of structures.

Repayment structures

• Standard variable rate (SVR). This is Barclays International's default mortgage and will apply when the term of your tracker, discount or fixed rate mortgage finishes. Our SVR is independent of the Bank of England Base Rate, however when there is a base rate change, then normally our SVR will also change.
• Tracker. The interest rate follows the Barclays Bank Base Rate (BBBR) which in turn tracks the Bank of England base rate. It allows you to make large repayments without penalty.
• Fixed rate. The interest rate on a fixed rate mortgage cannot change, no matter what the base rate does. It enables you to budget ahead knowing exactly what your monthly mortgage payments will be during the fixed term.
• Discounted mortgage (subject to availability). This is a cheaper version of the fixed term mortgage and usually applies for the first couple of years of the mortgage term.
• Mix & Match. This enables you to combine the characteristics of fixed and tracker mortgages to better meet your needs.

For more detailed information about the different mortgage structures available see the guides on variable rate mortgages, general mortgage advice and getting a mortgage quote.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Financial planning

Working closely with your professional tax adviser, we can help you to:

• Better prepare your assets for the possible eventualities of dissipation, divorce, litigation and third-party claims
• Pass on ownership with greater control over inheritance
• Plan your retirement and manage your pension provisions
• Allocate and manage your assets with privacy and discretion
• Set up full or partial discretionary trusts where appropriate.

Financial planning requires independent professional tax advice, and we are happy to introduce clients to our preferred tax advisers, Ernst and Young.

Find out more about our financial planning services.

Currency exchange services

Our offshore banking services can incorporate currency exchange and transfer services including:

• Spot exchange. The simple, on-the-spot exchange of currency.
• Forward exchange contract. The exchange rate is agreed in advance of the trade.
• Option dated forward exchange contract. Like a forward exchange contract but with the extra benefit of being able to execute the trade early.
• Currency options. These can be used to protect against currency exchanges without being obliged to execute a trade.

For more information or to apply

To find out more about how to grow and protect your wealth you can contact your Relationship Manager or call us on +44 (0)1624 684 316†