TRY OFFSHORE BANKING
Alfred notes that there is a growing trend of Singaporeans parking their money overseas, in the hopes of earning higher interest on their savings. This is a good idea if you plan to send your child to a foreign country to study in the future.
“If you’re going to send your kids to, say, Australia in 10 years’ time to further their studies, then you may decide to open a bank account there now. The money you save over the next 10 years can sit there and earn interest, and you’ll spend that money when your kids go there, anyway.”
But he warns that you should take note of the taxes other countries impose on offshore bank accounts. “Keep an eye, too, on the currency exchange rate – if it depreciates or fluctuates, you may lose out. And don’t just stash money overseas for the sake of it. Offshore banking is really only something that makes sense if you have a need for it in the first place.”