In cases where someone deals with an external money establishment located outside of the country or jurisdiction of the country of residence, the transaction is called offshore banking. One of the best reasons for having an offshore checking account is that you’ll be able to enjoy some tax relief. This word really commenced when the people residing in the UK started a habit of opening up an account in the banks found in the Isles of the Brit Channel, which is offshore. Since there islands were off the shore of UK and there were real tax advantages by banking with them, the word offshore got more prominence. Soon, the islands become increasingly favored as more folk get to know about the advantages of offshore banking.