Offshore Banking - Myths & Facts

By James Bauman Ph.D.

MYTH: Offshore banking can't be that good because they can't really pay the high interest rates they offer. If they could really pay those rates then U.S. banks would try to be competitive and have the same interest rates.

FACT: Examine closely the financial statements of any U.S. Bank. You will see that their "gross" profits against customer deposits can range from 25% to 40% -- but -- they have laws written in stone to limit the interest amount they can pay customers on their deposits. The U.S. banks place their earnings into unnecessary frills and non-productive expenditures like fancy buildings etc., while offshore banking facilities don't do this and share their profits with their customers.

MYTH: Offshore banking isn't regulated, so you are at risk of losing all money deposited with them.

FACT: The truth is that every country in the free world has regulations, rules and laws governing financial institutions and banks. Those regulations, rules, and laws, however, are much less restrictive than the "protectionist" U.S. banking regulations, rules, and laws and allow the offshore banking industry better opportunity to earn much greater profits for their investors and depositors.

MYTH: Offshore banking facilities are not insured by the F.D.I.C.

FACT: Some of the banks are but not that many. If they are, they must comply with the same protectionist banking regulations and rules as all the other F.D.I.C. insured banks. But, the majority of offshore banking facilities are insured; one way or another.

Depositor insurance programs similar to the F.D.I.C. program have been established in some countries, so that the banks in those countries have their deposits insured. Independent insurance companies insure the deposits of offshore banking facilities in other countries AND unlike the F.D.I.C., insure 100% of the banks deposits; not just those under $100,000. (By the way, some of the banks in the U.S. insure their deposits with independent insurance companies and many banks in the U.S. are not F.D.I.C. insured)

Offshore banking is "self-insured" for the most part which means those banks have a liquidity factor equal to 100% (or more) of the deposits on the books. Those banks have $1 (or more) in liquid assets for every $1 held on deposit. Therefore, there is no bank run because they can cover any depositor demand.

Self-insured offshore banking is actually more secure than F.D.I.C. insured U.S. banking. Why? Because the F.D.I.C. insured U.S. banks are permitted to maintain a liquidity factor equivalent to approximately 10 percent of their public deposits. (Is it any wonder why more U.S. banks fail each year than in any other country?)

Which kind of bank would you feel more safe having your money in? An offshore banking institution which as one dollar in cash for every dollar on deposit, or a U.S. bank which as ten cents in cash for every dollar that shows up on the deposit statement they give their clients?

MYTH: Offshore banking isn't as big or strong as U.S. banking.

FACT: Of the strongest and largest big banks in the world (in assets), one bank ONLY is located in the United States:

Here are the safest offshore banks in the world, according to a ranking done in 2007 after examining their total assets in US dollars. This ranking is compiled from balance sheet information included on AllBanks.org

1 UBS AG Switzerland 2 Barclays UK 3 The Royal Bank of Scotland Group UK 4 Deutsche Bank AG Germany 5 BNP Paribas SA France 6 The Bank of Tokyo-Mitsubishi UFJ Ltd Japan 7 ABN AMRO Holding NV Netherlands 8 Societe Generale France 9 Credit Agricole SA France 10 Bank of America NA USA

2008/2009 UPDATE AFTER THE FINANCIAL COLLAPSE OF 2008

Germanys largest bank, Deutsche Bank AG, reported a fourth quarter loss of about $6.3 billion. A year earlier, the bank posted a profit of about $1.3 billion (1 billion euros), Bloomberg reported.

Royal Bank of Scotland is expected to post losses of as high as £1.7 billion.

Bucking the trend is a bank not even on the list above and that bank is Standard Chartered bank which is expecting to post profits of 1.3 billion pounds. I have a contact who can help you open an account at this bank for your company if you desire to do so. The account would be in Hong Kong.

Another bank I know about is rated AAA by an independent rating service and if you are not from the U.S. or if you are from the U.S. and have a foreign LLC or IBC to open the account with then you can deposit $15,000 and get involved in their borrow low and deposit high program which has earned depositors as much as 100% per year on their deposit. It is easy to open an account there.

MYTH: Offshore banking must not be very good, or more facilities would advertise their services in newspapers and magazines in the U.S.

FACT: Offshore banking in general is restricted by law from advertising in magazines, newspapers, radio and on T.V. unless they come under the same protectionist rules and regulations that are placed upon U.S. banks. Knowing that, you should be cautious about doing business with any offshore banking facility that publicly advertises in the U.S. media. Because you can be very sure that they have sold-out to the U.S. banking establishment and that establishment will end up selling you out to those who make the rules.

MYTH: Offshore banking is only for the wealthy.

FACT: About 25 years ago, that may have been true. But I know of about three offshore banking facilities that will allow you to open an account for as little as $500. One of these is in the Asia, another in Europe, and another in Latin America.

MYTH: Opening an account at an offshore banking facility is too difficult, and it is very difficult to get a withdrawal when you need it.

FACT: Opening an account at an offshore banking facility is easy because you just follow the instructions they give to you. Getting your money out only requires a request that you fax or email with an attachment included.

This article is governed by international copyright laws and is governed by the laws of Ezine Articles. Violators of their rules will be punished to the fullest extent possible.

James Bauman Ph.D. has been involved with the offshore world, banking, and asset protection for about 12 years now. During that time he has gained an education in offshore banking and high yield return investing and has learned of an offshore bank where depositors regularly make 50% to 100% high yield return on their money per year. Out of the experience he has gained over the years he developed the offshore banking and asset protection business FREEDOM OFFSHORE SERVICES. You can find out more and how to get FREE offshore bank account introductions here: http://www.freedomoffshore.com/offshorebanking.html Also, you can learn more about why a personal offshore bank account is not the safest way to control your offshore banking here: http://www.freedomoffshore.com/offshorebankaccounts.html Now, how do you know we are real? If you want a reference for us then we can give you someone to contact who will confirm our integrity.
We hope to serve you not only in a way that saves you money, but by giving you quality service also. May your experience in the world of offshore banking and asset protection always be a pleasant one with our help.

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The Benefits of Business Money Market Accounts

By Evie Phan

Business money market accounts are investment tools that give companies easy access to their funds while offering a very reasonable rate of return. But this is not the only benefit of taking this investing route. Let's look at a few others:

Tiered Account Rates - Many banks offer the benefit of tiered account rates, which means the more cash you place in your account, the higher your interest rate will be. So as you add to your balance, you will be able to take advantage of a higher rate of return.

Liquidity/Check-Writing Privileges - Another benefit of using business money market accounts as one of your company's investment tools is taking advantage of a liquid account. You will likely always have access to your funds, which would be available through your check-writing privileges.

No Minimum Transaction Amount - As a promotional tool, most financial institutions require no minimum transaction amount for your account. This definitely helps in cutting down your fees, making investing that much easier.

The above benefits are good reasons to take on an account for your company. But before you dive in, be sure to consider the following:

• Possible limitations. There may be some limitations on the number of transactions you can make a month with some business money market accounts. For instance, you may not be able to make over 6 withdrawals without being penalized.

• Fees/Minimum amount required. Some institutions may implement a minimum amount that is required to remain in your account at all times. For many, this amount is $5,000. If you fall below it, you may be accessed a monthly service fee.

With many other investment tools available for companies, business money market accounts are just one of the ways you can gain returns on your funds. But because they are so liquid and offer many of the privileges of a bank account, you can benefit well from making this one of the ways you choose to invest for your company.

Go Banking Rates

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Example of Hardship Letters - Top 6 Tips to Write a Financial Hardship Letter

By Eric Banks

A hardship letter is addressed to the lender or the mortgage company by the borrower once he / she has missed some of the payments. This letter serves as the basis or your communication & future negotiations with the lender or the mortgage company. The borrower aims to explain his / her current position with this letter. It is a must that this letter is presented in the best & most effective way possible in order to strike up the best deal with the lender.

Tips To Write Financial Hardship Letter

Here are some tips that would help you write an effective financial hardship letter.

· The letter must be written in a formal manner.

· The letter should be mailed by some certified mail service. Also check that you have the receipt of receiving of this letter.

· The hardship letter has to be very neat and concise. In case your hand writing is bad, prefer to get the letter typed.

· The letter must comprise of the borrower's loan number along with the preferred option like short sale or loan modification, the borrower's name, borrower's address, borrower's phone numbers and the borrower's email address.

· Financially it comprises of the borrower's current monthly income, monthly expenditure and the reason of the financial crisis.

· This letter must be written quite in time in order to avoid a foreclosure.

Financial Hardship Sample Letter

A sample letter for financial hardship letter is as follows:

Debra Jones
ABC Street, XYZ Town
State - 12345
Contact No.: 921112345

John Williams
JKL Street, XYZ Town
State - 12345

Loan Number: ........... : Forbearance

Today's Date

Dear Mr. Williams,

This is to apologize for the lapse in my monthly payments. Actually, I met with an accident 2 months before and was hospitalized all this time. I have undergone several operations in this time and am on bed rest now. I can join back to the job after another 2 months or so.

All these 4 months I have not got my salary. That is why I could not cover up for the monthly payments. I guess, the situation shall get normal once I join back the work. I request you settle down for the forbearance for a few months. I can not afford to lose this house.

Rest, I shall wait for your response.

Regards,
Debra Jones
Contact No.: 921112345,
Email- debrajones@abcmail.com

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Government Funded Minority Grants

By Michelle Rozel

Government minority grants are available to assist individuals in many different areas. There are virtually billions of dollars in government funded minority grants awarded yearly to African Americans, Hispanics, Asians, American Indians, the handicapped and any other minority group you can think of. Even just being of the female persuasion categorizes one as a minority.

Contrary to unfortunate past discrimination, in today's world being considered a minority often works to your advantage. If you fall under any of the categories listed above (and then some) you are already eligible to receive one or more government funded minority grants. It's that simple.

Who qualifies for Minority Grants?

There are a countless amount government agencies and foundations across the U.S.A. who offer certain types of grant grants that specifically benefit the minority population. There are various minority grants to apply for. You simply must meet the eligibility requirements to qualify. Below are only a few of the minority groups that qualify for minority grants.

African Americans

It seems that African Americans have seen the benefits of an enormous increase in college minority grant opportunities over the last several years, including funding for The United Negro College Fund, The Frederick Douglas Scholars Program, The National Black Nurses Association, The March of Dimes Nursing Scholarships, The American Psychological Association's minority fellowship program, just to name a few. The United Negro College Fund (UNCF) is by far the most widely known and impressive minority college grant. The UNCF coined the well known phrase "a mind is a terrible thing to waste" which has been widely embraced across the U.S. More than three dozen historically African American colleges and universities in the USA are funded by this minority college grant .

Hispanic Minority Grants

Hispanic minority grants are also becoming more readily available in recent months. While once few in comparison to the other minorities grant opportunities, the government has acknowledged this deficit and contributed in excess of $10 million dollars towards the development and expansion of Hispanic populated colleges. On top of that those funds, the government has also distributed millions of dollars towards already established Hispanic populated universities and colleges. As of late, there has been an extensive rise in enrollment with the utilization of minority grants such as The Hispanic Nurses Association grants and scholarships, March of Dimes Nursing Scholarship program, Scholarship for Disadvantaged Students program, Nursing Education Loan Repayment program and The Hispanic Scholarship Fund Institute.

Native American Minority Grants

Unfortunately, it may be a bit harder for native Americans to cut through some of the red tape. But it's not impossible. In order to qualify and become approved for Native American minority grants, you must possess a Certificate of Indian Blood (CIB), and belong to a well-recognized tribe. This is may be difficult if you're a native of tribe that did not keep documentation. If you are a native American who does possess a CIB, then you have a great chance of being eligible to receive Native American minority grants like Tribal Wildlife Grants, Tribal Colleges Education Equity Grants, Indian Adult Education, or Minority Science and Engineering Improvement.

Disadvantaged Groups Minority Grants

If you are able to prove that you have a disability, whether it physical or mental, there are a large amount of minority grants that are specifically designed to assist you in your educational endeavors, whether for college, physical rehabilitation, speech therapy, or preschool. Those are only a few.

There are so many different types of minority categories that it's quite likely that you fall into one of them without even knowing. There's no better time to find out what minority grants you may be qualified to attain.

See if you qualify to receive free minority grants. Millions of Americans are benefiting from obtaining these funds, and you can too just by asking for free grant money...

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Income From ISA's

By Ian Ramsey

Cash ISA's are always popular savings products amongst regular savers as they enable the saver to invest up to £3,600 and enjoy the income without paying any tax on it. Each citizen in the UK is also permitted to invest an amount tax free into a stocks and shares ISA but given the current financial climate this option is seen as more risky than investing in a Cash ISA.

As with most saving products most cash ISA's offer greater returns for investors who invest all their funds in one go and do not need much access to those funds. For this type of investor it is usually recommended that funds are deposited into a variable rate ISA account to maximise returns, with top rates on this type of product currently at around 3.5%. However, for many savers looking to take full advantage of a cash ISA investing a lump sum upfront is not an option as they simply do not have the resources to do so. An alternative for this type of saver is a regular saver cash ISA.

This type of product allows the investor to deposit £300 monthly and earn interest tax free. Often this type of saving is not as beneficial as investing a lump sum but First Direct have released a product paying 7% monthly interest. The interest on the regular saver account is calculated at the end of each month, with the figure being drawn up from the amount in the account at that time. This product offers great potential income but allows little or no withdrawals so for any saver who will need to access funds from their ISA this may not be the best choice.

Using an ISA is a great way to maximise savings income. For any individual looking at ISA's it is important to compare cash ISA's and use a savings calculator to determine which product is best for the individuals requirements.

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