According to Russian law, any adult citizen has the right to open deposits in a foreign bank. This is not easy to do, but this does not stop many Russians. If you set out to invest in a foreign bank, it is important to make the right choice.
Advantages and disadvantages of foreign banks
Foreign banks attract a lot of Russians. It is believed that keeping savings in a foreign bank is safer than in a Russian one. Higher stability of foreign banking structures is due to the fact that they do not invest in high-risk assets.
A foreign bank is not a bank with a foreign name that operates on the territory of the Russian Federation. Such banks are also subject to the Central Bank of the Russian Federation, and the conditions of their activities are no different from those in Russia.
Another reason why depositors prefer foreign banks is the desire to diversify investment directions, which increases the safety of funds. Many open accounts abroad for convenience and to improve the processing speed and cost of international transactions. Such people, for example, have real estate or business abroad, or their children study abroad.
In addition, foreign bank account transactions are confidential and out of sight of tax and other supervisory authorities. Finally, a foreign bank account can open more favorable lending conditions, which are provided in foreign banks.
Russians open foreign accounts for the sake of saving rather than increasing their money, since the rates on deposits abroad are less profitable. They can range from 0 to 4% per year, while in Russia the rates for foreign currency deposits are several times lower. Moreover, some large banks set reduced rates for non-residents.
When opening an account abroad, Russians are required to notify the tax office within a month, otherwise they will be subject to a considerable fine.
Meanwhile, foreign deposits, as a rule, are characterized by high commissions for maintaining an account, converting and withdrawing cash, which practically depreciates their profitability.
Criteria for choosing a foreign bank
First of all, you need to make sure that the bank is trustworthy. These are considered OECD member banks, as well as the FATF (Commission on the problems of money laundering). Of course, it is worth finding out if it is possible to open an account in these banks for non-residents. In some countries, there are restrictions on opening deposits for persons with foreign citizenship.
It is also worth considering the following factors:
- type of account to be opened - for individuals or legal entities;
- the procedure for opening an account - it is necessary to familiarize yourself with the requirements of the bank for opening an account (for example, in some banks there are restrictions on the size of the account), as well as the list of documents;
- bank charges for transactions and account management;
- bank reliability - it is necessary to take into account the experience of the bank, its financial performance and credit rating.
Finally, one cannot but take into account the convenience of opening an account in a foreign bank - the possibility of remotely opening a deposit and managing funds (via the Internet bank).
