Savings and CDs

In this section we will cover various types of bank accounts as well as the growing popularity of online banking.

There are many account variations available for both current accounts and savings accounts, and it is even possible to get combined current and savings accounts. The type of account you need depends on the features you need and the amount of money you will be paying in and out of your account. If you have a large amount of savings, then you want a savings account with the best interest rate to take advantage of this. Also, if you have relatively little money in your current account then you shouldn't opt for an account that requires a minimum amount be paid into the account each month.

A checking account is just another bank account, though it is usually not the same or attached to your savings account. Many people find it worthwhile to have both a savings account and a checking account. The reason for this is that you get interest on your savings in the savings account - while in a checking account, you have more freedom with when and how you withdraw your money.

Offshore Banking

Offshore Banking is having a bank account in a country where you are not a resident. Normally this would be in a tax haven (a country that has low taxes or no taxation). Because of the word "offshore" you would think that only remote islands are offering this type of banking. In reality even the USA and Canada can be offshore tax haven for you depending on your country of residence and nationality. Many large international banks have branches or are incorporated in tax havens.