What's the difference between a local account in Hong Kong and offshore account?

In offshore account, there are only account numbers, but no bank cards. Domestic automatic unionpay machines cannot withdraw money. You can only transfer money to mainland accounts through the internet, and you can only exchange US dollars into RMB through bank counter settlement.

2. The fees for withdrawal procedures are different.

Compared with offshore account, local households in Hong Kong have lower handling fees and no deposit requirements. However, many banks have deposit requirements for offshore account in China. If they can't meet the monthly account management fee of $ 30-40, this requirement is different for different banks.

3. Different withdrawal methods.

Local accounts, with account numbers and bank cards, can be withdrawn from domestic automatic UnionPay machines. You can first change US dollars into Hong Kong dollars in online banking and withdraw RMB directly from the 24-hour automatic UnionPay machine.

Hong Kong local accounts can freely access RMB and foreign currencies in local banks in Hong Kong, generally referring to US dollars and Hong Kong dollars. Generally speaking, opening an account locally is the most advantageous and convenient.

4. The degree of control is different.

The entry and exit of funds in local accounts in Hong Kong is not controlled, while the opening of foreign banks in China by offshore account should be supervised by China financial management institutions; Banks in Hong Kong are supervised by the Hong Kong Monetary Authority. Therefore, at present, offshore account cannot deposit cash, deposit checks and withdraw cash.

Extended data:

Advantages of offshore account

1. Freedom of fund allocation:

A customer's offshore account is equivalent to an account opened in an overseas bank, and he can freely transfer funds from offshore account without domestic foreign exchange control.

2. The deposit interest rate and variety are not restricted:

The deposit interest rate and variety are not restricted by domestic supervision, and are more favorable and flexible than similar deposit interest rates of overseas banks. In particular, large deposits can be customized according to customer needs in terms of interest rate and term, which is flexible and convenient.

3. Exemption from deposit interest tax:

The interest of offshore deposits in China is exempt from deposit interest tax. The actual net income of offshore deposits is even more impressive.

4. Improve the comprehensive operational efficiency of domestic and foreign funds:

It can make full use of the full-service characteristics that banks can provide onshore business and overseas banking functions, reduce the comprehensive cost of funds, speed up the turnover of domestic and foreign funds, and improve the efficiency of fund use.

5. Domestic control and overseas operation:

Offshore account can operate through online banking.

References:

Baidu Encyclopedia-offshore account

Baidu encyclopedia-account number