Category: Cash Management

There are instances you find yourself in possession of some valuable portable assets that will require a safe offshore deposit facility.

These assets are valuable documents such as passports, bearer shares, citizenship records, bill of sales, pension records, trust documents, rare stamps, etc. Besides document format, you can also store your valuable information in a floppy disk, hard disk drive, flash drive, or any device used in storing data.

Safe deposit box has been gaining wave due to its effectiveness in settling disputes arising from the estate’s sharing. That is the more reason why experts recommend the use of safe boxes in estate planning.

Bank deposit versus independent, safe deposit company?

Apart from collecting deposits, opening accounts, and granting loans and advances, banks perform other duties. Banks also serve as a platform where you can keep your valuable portable assets.

However, before you settle down for any bank, you must make an in-depth inquiry. Reason being that these assets are too valuable to dump just anywhere.

Also, you must understand some of the conditions most banks offering this type of service is that you must register an account with them.

Safe-deposit Company

It is not that safe deposit companies are not efficient. But the issue is that most of these companies are highly exposed to theft and burglary. In some instances, they ended up folding up or closing their operations, putting you in a tight corner to retrieve your assets.

On the other hand, some people opt for a safe deposit company because of their policy’s simplicity. Some may only request your plastic card without any need to sign-in.

The disadvantage of safety deposit box companies is that they can dispose, open, or auction any valuables you have with them if you fail to pay your charges over a long period.

Top countries for offshore safe deposit

Primary conditions for determining a country with safe offshore deposits are no extreme border control and robust legislation that protects property rights. Counties like Luxemburg, Switzerland, and Austria have continued to top the ranking list for countries of the first choice for offshore safe deposit.

If you are in a country where you don’t have a problem, there is no point in going overseas. You can stick to your bank as well. But you must ensure you have somebody on the inside that you can trust, in case you are indisposed. That person will access your valuables to avoid a situation where your assets will be abandoned.

Key things you must note

• Ensure you have the key in a sealed envelope that you can drop with the bank safekeeping department

• You can also embrace the high-tech keyless system. It will ensure that only your fingerprint can access the box

• An emergency may come up, and you may not have the key. To avoid getting cut up in policy entanglement. Ensure you go for a policy that will grant you access to the safe box without using an Identity card. Your appearance in person should serve as an alternative to opening the safe box with or without the keys.

Key Takeaways

• Avoid putting your safe box key in the form of pendants. It is a secret, and it must remain a secret.

• Some factors are beyond human control, irrespective of how smart and intelligent you are. You should have instructions in place. Have someone you can trust. It could be your banker or a close associate you know you can trust with high-level information.

Don’t die with your secret

Most banks will request that you open an account with them for safekeeping charges. Make it a standing order that should a situation arise that they do not hear from you for 2-3 years, and they should contact maybe your wife, son, or your attorney. Doing this will ensure that your assets are not sold off to balance the book for safekeeping charges.

Conclusion

Keeping your valuable such as jewelry, valuable documents, and cash in an offshore safe deposit is not a bad idea. The bank and safe deposit company have advantages; consider their features before settling for your choice.

Also, not all overseas countries are safe for this type of engagement. Before you pick any country, consider their property rights laws to avoid a situation where the government will impound you cash.

Banking and savings can be considered two sides of the same coin. We all want to save money and it the number one money tip that everyone advocates and implements on themselves as well. Although this is all for good reasons too how it is possible is a big question. What should be the most appropriate way is still need to explore with every minute changing trends.

If one goes with conventional banking for having a savings account, the interest rate is a big issue while on the other hand Islamic bank speculation savings account is another way to explore properly for international account holders in UAE.

Cut it short, keep one thing in your mind that it is the most basic money management step that keeps you prepared for the most unexpected scenarios. For example, a sudden car breaking down, or you need to make an emergency trip, having savings in your account gives you peace of mind. Otherwise to come out of such big financial losses is hard to tackle.

However, saving is just one part of the equation and there are two other directions that give you the exact output to deal with this plan. First seeing it as just a lump sum of money you already have in your savings account, you should focus on the ways to keep it stable and save it from losing the potential value this plan can give you. You can take the path with two options as:

• Islamic savings account with a Fixed Deposit

• Conventional savings account with an investment plan

Choose which way you want because both are working in a perfect manner in the UAE region. To make sure that you can get maximum output through a saving plan, here are five mistakes you need to avoid when it comes to your savings.

Don’t have any idea about savings ratio

There is a variation in the savings options like if you are saving for your emergency fund, the general rule of thumb is to save up at least three months of your monthly income. While if you are saving for a UAE mortgage loan, at least you have six months’ monthly expenses so that to easily handle your loan installments without disturbing your routine based tasks.

Let me explain through an example, if your monthly income is AED 3,000, you may look at saving about AED 10000 for your home loan or a mortgage loan in the future then you must start by putting 10% of your monthly income into your savings account.

This is the most basic formula to manage your savings in a fruitful way. Most of the expatriates don’t have an exact idea and they informally get into a loan which comes into an ultimate result in the form of debt. So be prepared yourself with all outcomes so that to manage in a responsible and accurate way.

Avoid saving in an interest bearing account

In conventional banking, savings come from an interest rate system but it’s of no use because at the end of your FD, you will get a minimum amount. Always keep one thing in your mind that compounding interest makes the world go round – well, almost and in many similar situations.

Now the point is, how can we safeguard our hard-earned money from the ghastly inflation in critical situations? Very simple, you always put your emergency savings in an account that offers liquidity and high-interest rate. This is a variable method that can save you from the inflations period when banks have no other option but to cut down your interest rate. This is the only way to save your actual profit.

We would recommend you to take advantage of this feature from savings or current accounts offered by the banks in the UAE. In this way, you can also boost your savings. There is another way out in the form of multiple savings account. For example in a multi-tiered interest account, you don’t only protect your savings from the situation like inflation, but at the other end, you always keep working to increase your funds.

Use auto-billing payments

Most of the account holders don’t have any idea about the smart savings options in UAE they ignore the small things which can be used for savings. Like paying your bills isn’t part of saving, do a thing so? It’s wrong because making smart payments can save you money in many ways. Nowadays making payments have become increasingly easy through credit card and other online banking options. To complete this task you can even choose the option of making recurring transactions.

Suppose you are working with an Islamic loan in the Emirates and you have to make payments for your loan schemes every month. If you are using auto-billing options, you can save a lot. All these features help you to keep track of your payments at one side while on the other hand, you can make it safer for getting further into debt. There is a choice like making late payments through checks and other transaction options. Well, it doesn’t just incur higher interest costs but also affects your credit health, which will impact your credit application in the future.

In UAE, most of the banks provide auto-billing transactions without any fee and it can be done completely free of charge but some of the banks charged a little amount. Take note of these in a proper way and consider this extra fee will help you save in other ways like managing the loan sheet. While the cost of paying your bills manually could possibly be higher due to late transactions.

Conclusive point

As an expatriate, if you want to work for your savings plans, investment solutions or any kind of a loan option, the best Islamic current account might be an appropriate option. You should read all the terms and conditions applied to a scheme because this is quite unique as compared to the conventional banking system.