Practical offshore banking begins with choosing a bank with the right kind of products, services and extras to fit your needs.
  
Choosing an offshore bank account is not as easy as one might think. The choice of accounts on offer expands each year, with new products regularly entering the market in a rapidly maturing sector. For those expatriates who are still in their first six months of a spell living and working overseas, it will be hard to discern between the bewildering array of banking facilities presently available. Some products attached to accounts will look very inviting and turn out to be absolutely essential, while others may appear to be little more than a perfunctory extra. And there will inevitably be a few facilities which, just by dint of how things turn out for you, never need to be called upon. But to base a decision as to whether to go with Bank A on the strength of its multi-currency account or to opt for Bank B because of its new investment fund facility, is the wrong approach.
  
An initial survey of offshore banking facilities by all new expatriates should be made on the basis of a secure understanding of what your money management needs are right now. And while not ruling out the prospects of a bright year hence, focus on what you need today rather than what you aspire to tomorrow. Don't be swayed by a dazzling showcase of extra flavours if what really suits you is plain vanilla. Having said that, there will be many ex-pats whose banking and investment projections will already be mapped out securely enough to sign up to a more sophisticated package of banking facilities, and, if this is your circumstance, on no terms accept plain vanilla accounts.
  
Here are some tips for getting to grips with the issues surrounding offshore banking. To begin with, before selecting a bank, take a step back and ensure you are happy with the jurisdiction within which the bank is located. Pay attention to the appropriate local regulatory structure and find out what other international names are situated within this particular offshore centre.
  
When enquiring about a bank which has caught your attention, research its history and find out who is its ultimate owner. Ask about staff turnover, particularly if you are seeking a banking relationship with involves taking advice on investments. A key to any successful relationship with a bank is ultimately down to the relationship you form with a manager and that needs time as well as continuity to develop.
  
Consider at the outset what precisely you need from offshore banking. Is this just a place to park some cash? Will it be the home of your only savings? Or do you need an active money transmission service which will be cheap and efficient to run? Or are you looking for a bank which can also handle surplus monies for channelling into appropriate investments? Once you've understood your needs, take your time to discover as much as you can about whether the bank you are considering offers accounts and services which truly support your requirements.
  
Expatriates whose real need centres on savings should check out the best interest rate paying accounts as monitored by an independent source, such as Candour.
  
Of course, the scope for online banking facilities with offshore bank accounts has never been greater, nor has the demand. These days, expatriate banking customers expect an online facility through which they can exert a greater control over their day-to-day money management at times of their own choosing.
  
For many expatriates the issue which concerns them most is security. But offshore bankers across the board maintain that in reality the threat of hackers accessing bank's security system and breaking into its customers` personal fields is very low. Banks are every bit as keen as account holders to maintain fire-walls and security screens which are impenetrable to those who shouldn't be trying to pass through. Internet banking these days employs what's called 128 bit encryption that is virtually impossible for hackers to break.