What is Online Offshore Banking?

N. Madison
N. Madison

Online offshore banking is Internet banking handled through a financial institution that is located outside the country in which the account holder lives. With online offshore banking, a person can usually check his account balances and transfer money to other banking institutions. This type of account may also allow an individual to set up and initiate online bill payments, much the way he might with an in-country, traditional bank account. The exact capabilities a person will have with an online offshore account may vary, however, depending on the banking institution.

Man holding computer
Man holding computer

In most cases, a person who wants to open a bank account does so in his own country. With this type of bank account, a person may have an opportunity to bank in person at a nearby branch, via the mail, or online. Often, banks allow account holders to do such things as check their account balances, make payments, and transfer funds from account to account. Online offshore banking usually works in the same way. The bank account a person uses, however, isn’t held by a nearby bank. Instead, the bank is located in an entirely different country.

The features of online banking offered with an offshore account typically depend on the financial institution in question. Some offshore bank accounts may not allow online banking at all. When they do, however, offshore bank accounts usually include the same sorts of features traditional bank accounts do. For example, a person may be able to view his account balance online. If he has more than one account with the same bank, he may also have the ability to transfer funds between his accounts via the Internet. He may even use online offshore banking to transfer funds to other accounts at other banking institutions.

Typically, online offshore banking also allows an individual to make debits from other accounts for the purpose of transferring money into his offshore account. The manner in which this accomplished and whether it can be handled entirely online, however, typically depends on the offshore bank and its guidelines. It may also depend on the country from which the funds will be transferred.

In most cases, online offshore banking also allows an account holder to make payments using his account. This is often referred to as online bill pay. As with debiting money from other accounts, however, the details of online bill-pay features may depend on the offshore bank.

N. Madison
N. Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

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