What is international banking?
In a connected world, your finances don't need to be tied to one country. You can use financial services, like multi-currency accounts and global transfers, from wherever you are.
Types of international banking include private, retail, corporate and investment international banking.
Benefits of international banking
Here are a few ways that international banking, also known as offshore banking, can help you and your family.
Managing a global career
If you live and work overseas, an international account can help you send and receive money. For example, if you're moving to London, you can open an account before you arrive. This may make the move much smoother.
There are 2 accounts that help a non-resident Indian (NRI) stay connected to finances back home:
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NRO account: A non-resident ordinary account suits you if you still earn money in India, such as rent or dividends.
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NRE account: A non-resident external account lets you deposit income earned abroad into an account in India, converted into rupees.
Supporting family
Family always comes first, even when they're far away. An international account allows you to help loved ones in other countries. For instance, if your child is studying abroad, it makes it easier to pay for tuition and living expenses. You'll also have the peace of mind knowing that you can transfer money quickly if they need it.
Growing your wealth
Investing in different countries can be a smart way to diversify your portfolio and protect your future. If you have property or investments abroad, you can deposit your earnings directly into an offshore account. This helps you avoid currency fluctuations and builds your wealth.
Planning for your future
If you've always dreamed of moving or retiring somewhere else, you can get a head start. An offshore account can help you build up savings in that country.
Things to consider
Before you open an offshore account, think about the pros and cons of international banking. What suits you and your family best? What types of international banking will work for you? Weigh up these 3 factors to decide what's best for you.
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TaxationAn international bank account can be a great way to invest and save, but you must be tax compliant. Please connect with your tax advisor to validate your understanding of NRI income tax rules.
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CostsSome accounts may have a monthly fee or charge an extra fee on international transfers. Not all banks charge fees though. If you have an HSBC Premier account, for instance, you won't pay fees to transfer to another HSBC account overseas.
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SecurityIf you're worried that moving money across countries isn't safe, you needn't be. Banks invest a lot in making sure that they have the most advanced security systems in place to secure your funds.
Takeaways
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International banking can help give you control over your global finances
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It puts your accounts in one place, so you can manage your money with ease
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You can open an account quickly, often before you move abroad
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Offshore accounts can help you support your family overseas
Frequently asked questions
How to open an international bank account?
You can apply online through a banking app or visit a branch. Many banks let you open an account before you move overseas.
How to do an international bank transfer?
Log in to your bank's website or app or visit your local branch. Provide the recipient's details, including their account number, SWIFT code, and IBAN if required. Choose the amount and currency to send, pay any fees, and confirm the transfer.
Can I open an NRI account from overseas?
Yes, in most cases you can. What you need may depend on where you live and the type of account you want. Use the 'Request a callback' option to confirm requirements.
Can I authorise someone in India to operate my account?
Yes, some banks let you set up an account authorisation, though the steps and paperwork can vary. To get started, speak to your Relationship Manager or visit your nearest branch.
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