How to deposit money in a bank abroad
Where to place foreign deposit
It is POSSIBLE to place funds on deposit accounts in foreign banks. It is akin to burying a treasure in the Pacific Islands, but many times safer and more profitable!
Place funds on deposit accounts in foreign banks SHOULD. There are circumstances when it is necessary to make a deposit in a foreign bank: a child studying abroad, the need for medical treatment, buying real estate, starting a business.
In the latter case, we know exactly the country in which the funds are needed. And in the first one you will have to study foreign jurisdictions.
Deposits in Swiss banks are especially popular. But there is a high entry threshold, not everyone can afford it. Then other European banks are preferable (Estonian, Portuguese, Czech) or close in the European Union standards (Serbia, Macedonia, Montenegro, Kazakhstan). Or maybe take a chance and go offshore, to the Seychelles, British Virgin Islands, Belize, Panama? There is also a huge selection of financial institutions that attract tax-free or low-tax jurisdictions.
In any case, such countries pass a huge number of laws that stimulate foreign investment. Both from individuals and businesses.
So, we are for safety and profitability. This means that the bank should be evaluated according to the following characteristics:
- financial institution stability;
- range of deposits offered to private and corporate clients;
- account maintenance fee;
- yield percentage. In European banks, as a rule, rates are low. This is 0.5-2% for non-resident clients;
- minimum balance amount;
- minimum threshold for opening a deposit;
- terms for deposit placement;
- interest payment and taxation mechanism;
- terms for opening an account. Long, be prepared for 2-6 months of verification;
- the ability to place a deposit remotely. Currently significantly limited.
And the country of destination – in terms of foreign economic policy.
How to do it? Monitor the bank’s page, read news about it, customer reviews. To study the principles of the foreign policy of the state.
Such work can take a long time and require a certain level of financial literacy from the citizen.
How to open a foreign account
The next step, after choosing a foreign bank, is to open an account. To put money in a bank abroad, you first need to open a current account in it. This is required by many foreign banks. It is a payment account and allows you to move deposited funds.
And if you don’t have to open the current one, the actions for opening a deposit are similar. To do it yourself, you will have to sweat even more than when looking for a bank:
1. I need a perfectly designed, notarized, large package of documents with translation:
- personal documents: foreign passport (copy, original);
- proof of residence address: utility bill, registration in internal passport (copy, original);
- proof of the legality of the origin of funds: tax return, real estate purchase agreement, etc.;
- statements of active bank accounts for the last 6-12 months;
- income documents;
- family references;
- recommendations from employers, partners, bank specialists, lawyers, accountants;
- others at the request of the bank.
This is an approximate list. It may vary depending on the country, financial institution.
2. Experience in dealing with banking services, compliance with formalities, attention to detail is required3
3. You must submit an application, in which you indicate the purpose of opening an account, projected turnover, balance, attach copies of documents and wait for prior approval.
4. If it is received, the original documents are sent to the bank for analysis, the client personally or his representative travels.
5. The legitimacy of the origin of funds will be checked most carefully.
6. When a client is approved by a financial institution, you need to sign documents and make an activation deposit.
The main requirements for individuals, in addition to the legality of sources of income, are at least 18 years of age at the time of applying to a banking institution.
It will be quite difficult for clients who fall into the “suspicious” category to open an account. These are politically significant persons who held political office less than 12 months ago, as well as citizens who knowingly did not provide the full amount of information or made deliberate errors in their documents.
How to put money on a foreign deposit
It’s enough to top up your account:
- transfer funds from a bank account opened in the name of a foreign citizen in this or any other bank. Including the method of cross-border bank transfer;
- come to the bank in person with cash or a bank card;
- transfer electronic money (cryptocurrency transactions, money from payment systems accounts).
The initial amount for enrollment is quite large – about 10,000 euros. And other banks will not be interested in even 50,000 euros.
As a rule, Ukrainians prefer traditional currencies – euro, dollar. In case of a mismatch in the currencies of bank accounts, an additional conversion fee will be charged.
The deposit replenishment is not limited by the minimum amount, as well as by the term of the deposit. Short-term and long-term placement of funds is possible.
Some of the types of foreign deposits:
During the term of the deposit, a refund is not possible. The money will be fully available after the end of the agreed period.
Early withdrawals are allowed, but are subject to interest charges;
- urgent without prior removal
The client is allowed to withdraw deposited funds at the end of the deposit;
- payable on notice.
The client informs the institution of the intention to withdraw funds in advance. And then can access them;
- placed within a special mode.
Funds for specific purposes: saving up for a home purchase, retirement savings account, others;
Regulated by concluded agreements.
It is very tempting to place money abroad: in terms of stability, confidentiality, deposit insurance in case of bank failure, low tax rates, a 50% increase in the possibility of a positive loan application consideration by 50%, and even registration residence permit.
Non-resident clients have access to a full range of payment solutions: bank accounts in multiple currencies and multi-currency, short-term and long-term deposits, Internet banking, international bank transfers, payment cards, prepaid debit cards with high spending limits, credit services.
But not everyone is ready to face the difficulties of the procedure. If you are among the latter, we recommend that you seek help from the firm’s lawyers “Lawrange” .
Experienced specialists will select the jurisdiction, bank, good rates, provide full customer support in opening accounts, transferring funds in many foreign banks. The client will receive advice on the tax and foreign policy of the country, and even a clear strategy to increase the profitability of free funds.
Can I get a residence permit through a deposit?
Many countries have launched an investment residence scheme that allows you to obtain a residence permit and even citizenship.
Why such low interest rates on foreign deposits?
The lower the rate, the higher the reliability of the financial institution.