Whether you are working overseas, living abroad permanently or temporarily, or if you are an expat on the move, offshore banking will play a key role in facilitating your time away.

Despite its reputation for exclusivity, the offshore retail banking sector is accessible to just about everyone. You don't have to be wealthy to participate. Minimum deposit levels are sometimes as low as £100.

Offshore Britain is made up of three finance centres - Guernsey, Jersey and the Isle of Man. These are the locations from which hundreds of thousands of expats choose to manage their money. The islands' high streets house the subsidiaries of banks and building societies whose names are familiar to us Brits and, of course, whose staff all speak English.

However, Offshore Britain's reputation recently took a battering when two Icelandic banks, whose offshore subsidiaries were based on the Isle of Man and Guernsey, collapsed, leaving their depositors severely out-of-pocket. This proved to be a somewhat overdue wake-up call to the  inancial services authorities on both islands, who have modified their depositor compensation schemes accordingly.

Now, as a depositor with a bank licensed on either island, you are guaranteed a compensation limit of £50,000 in the event of a bank's failure - per bank invested. Always read the small print of a bank's terms and conditions to make sure you don't inadvertently place a further deposit with a second bank which shares the same ultimate owner as your first deposit-taker. This would disqualify you from your compensation rights to all but the first bank's depositor protection scheme. 

We’ve picked four current offshore bank account to give you an insight into who’s offering what.

Abbey International’ Offshore Gold Current Account is described by the Bank as an everyday offshore bank account, it promises to be both “flexible and rewarding,” giving expats access to their money, wherever they are in the world. The Gold account can be denominated in sterling, euro or US dollar, or a combination of two or all three. The minimum opening deposit sums are £5,000, €7,500 or US$7,500.  With this account, variable interest rates are tiered – so the greater the balance, the higher the gross rate. It comes with a VISA deferred debit card and chequebook. 

HSBC Bank International offers its Offshore Bank Account. Day-to-day banking is effected by this Bank’s “flexible” international current account which is available in sterling, euro or US dollar. It’s backed up by a 24-hour phone and internet banking service. Account holders are offered an internationally accepted debit card denominated in sterling or US dollars, and a chequebook available in sterling or euro. This account offers international money transfers at what the Bank calls “reduced rates”. It also processes standing orders. The minimum balance is set at £5,000, €10,000 or US$10,000. No interest is payable if the balance falls below these minimum sums.  

LloydsTSB Offshore’s International Account is also denominated in sterling, euro and US dollars. In sterling, both a debit card and chequebook are offered. Expats can run an account with a minimum balance of just £100. Whereas the first three months of banking is fee free, thereafter there’s a monthly charge of £7.50. Benefits and features offered with this account include 24 hour phone and internet banking, representative offices located around the world, competitive interest rates for savers and a global money transmission service. The account is also denominated in euro and US dollars. 

NatWest International’s Current Plus Account is managed by phone and/or online. It comes with a chequebook and debit card and the use of a Cashcard abroad (Cirrus). There’s inbuilt flexibility with an overdraft facility and account holders can apply for a Gold or Classic credit card (a choice of MasterCard or VISA is offered). The Bank says there are no account fees and accountholders earn interest on their account balances.  

Hannah Beecham