Compare Bank Accounts

Last updated 01 May 2019

 

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It is advisable to compare bank accounts before you fill in the forms to open a bank account. Banks have different types of accounts, when you compare bank accounts, you will be in a better position to choose what best works for you.

Opening a bank account is an easy task. You should inquire from the institution beforehand what their account opening requirements are, so as to know whether you qualify to open an account with them.

Options Available

  • The savings account main intention is to save your money. Typical features include simple withdrawals and deposits with or without the option of cheques.
  • A checking account heavily relays on the use of cheques to make transactions. Holders of this account are able to make purchases, settle bills and transfer money by writing a cheque. The account usually does not impose any restrictions on the number of transactions made.
  • A money market accounts is another type of account, where holders of account enjoy higher rates of interests. This type of account has restrictions on the minimum amount of funds required to open and operate the account.
  • Certificates of deposit commonly known as term deposits are accounts where holders agree to keep a specified amount of money for a given period of time. The account comes with a higher interest rate although the money is not accessible during the specified duration.

Opening An Account

Before an individual can access all the benefits of a bank account, a few procedures have to be followed and this includes:

  • To open a personal account you will be required to show some identification such as a driver’s license and submit personal information like your name and address. Find out whether your preferred account requires a minimum operating amount and make sure you have money to fund the account.
  • A business account requires more documentation. Inclusive of all the personal identification requirements, account holders are expected to show proof of their incorporation. This proof can be in the form of a business license, Articles of Association or the Memorandum of Association.

Why Comparing Bank Accounts Is Important

When comparing bank accounts you will see that there are several types of bank accounts to choose from. Each bank account will offer you a different set of benefits. When choosing a current account, you will need to focus on whether you have to pay any charge to hold the account, whether an overdraft facility is available and what are the interest rates. For a savings account, you will not have to focus on the same things as the current account. Though you will still need to check interest rates, you will not have to check about overdraft facility as not all banks provide this facility for saving accounts.

Online Banking Facilities

Another important factor to check is whether the bank offers online banking. Most banks today offer online banking but not all offer the same type of service. Some banks allow a full range of online banking services like checking your account, making local and international payments, money transfers between different accounts, payment of utility bills, online fixed deposits, online investment opportunities, repayment of credit cards and a host of other services. However, some banks offer only online checking of accounts. A full range of online banking services is something you are going to need if you will be transacting online and offshore.

It is important you compare bank account services and benefits before you open an account with a bank. You can contact us and talk to our financial advisor if you need more information on which bank account is best for you.

Foreign Bank Account

Investors who operate a foreign bank account view it as investment diversification vehicles. It is important to consider certain factors of the host country such as; stable economy, banking policy on privacy and tax laws before opening a foreign bank account.

It is important to know the difference between a foreign savings deposit account and a foreign currency bank account; they are not the same. A foreign currency savings account is a domestic account from a multi-national bank, whereas a foreign savings account is a bank account in a bank located in another country.

Opening A Foreign Bank Account

Consideration should be made before deciding on the bank of your choice, the institutions should be researched to ensure that it has a good reputation and that the services are authentic and not exaggerated.

Countries have different criteria for account opening. Documentation requirements range from simple to detailed requests. The actual account opening also varies with some institutions requiring you to present yourself, some banks will give you the option of remotely account opening either through the internet or telephone while other require that the account holder hire a third party to liaise and facilitate with the opening of the account.

When you open a foreign bank account, it’s important that you exercise caution when opening your account and not forget that your actions are still subject to domestic laws.

Certain document must be provided so as to open a foreign account. These include:

  • A passport of valid driving license
  • Proof of address
  • Duly filled in account opening application form. Be sure to read the terms and conditions before submitting the application form.
  • Funding the newly opened account can either be through wire transfers and deposit. The banks usually advise their account holders on the best way to fund their accounts.

Benefits Of A Foreign Bank Account

  • This accounts offer privacy to the holder of the account
  • Holders of this accounts gain access to offshore investment opportunities that are not available in their home country
  • Protection of the account holder’s assets, this is more so if the account is linked to an offshore company. The result is that your assets are protected and the administration of your estate is well looked after.
  • Holders of foreign bank accounts can transact in different currencies
  • Access your account easily worldwide through integrated online banking services
  • This account is a vital tool for those engaged in international trade. A foreign bank account is a must for those seeking business opportunities internationally. Funds can be assessed by globally accepted credit or debit cards.

A foreign bank account is not a means of hiding your wealth. With a foreign bank account you will have access to various investment opportunities that are normally not available in your country of residence. Operating a foreign bank account is increasingly becoming a sought after practice. You can contact us and speak to our reputed financial advisor for more information on foreign bank accounts.

Overseas Bank Account

Opening an overseas bank account will give you the advantage of parking your assets and wealth in one of the favourable offshore jurisdictions. Transferring your assets and wealth to an overseas bank account will help you avoid having your accounts or assets frozen by the government through no fault of your own.

With overseas banks offering better interest rates, opening an account at one of the overseas banks has become popular. There are several advantages in opening an overseas bank account. Here are some important things you should know if you are planning to open an overseas bank account.

Benefits Of An Overseas Bank Account

Gone are the days when opening an overseas bank account was available to only the very rich. Today, just about anyone can open an overseas bank account. When opening an overseas bank account there are two important things to consider, privacy and tax planning. Here are some of the benefits of an overseas bank account.

  • Account anonymity
  • Effective tax planning
  • Zero or low tax
  • Economic stability in chosen jurisdiction
  • Financial stability in chosen jurisdiction
  • Easy access to funds globally
  • Better legal and political conditions
  • Higher interest rates
  • Asset protection
  • Possibility of global investment

Before opening the overseas bank account, it is important to talk to a tax consultant and discuss all the details pertaining to taxes. You will need to take into consideration the tax laws of your home country and the tax laws of the chosen jurisdiction.

Opening Process

Opening an overseas bank account is not difficult. However, there are a couple of things you need to consider before signing the forms.

Suitable Jurisdiction

The first step in opening an overseas bank account is finding the right jurisdiction. There are several popular offshore jurisdictions, but find one that favours investors. Each jurisdiction has its own benefits and hence it is important to acquire the assistance of a financial advisor to help you choose the right jurisdiction.

Choose The Bank

Once you have found the right jurisdiction, you will need to choose the right bank. Normally, you will have a couple of banks to choose from in each jurisdiction. Carefully look at the services each bank provides and choose the one most suited for your needs.

Start The Account Opening Procedure

When you have chosen bank, you can start the account opening procedure. You might be required to obtain the services of a professional firm to liaise with the bank on your behalf to ensure that all formalities are completed in line with all legalities. Some banks might require you to travel overseas to open an overseas bank account.

Choose The Type of Account

There are basically three types of accounts you can choose from; personal, corporate and investment. Each of these account have different facilities, so depending on your needs you will need to make a choice.

Personal Account

The personal account is for individuals and not for business purposes. The advantage of a personal account is to improve the individual’s personal capital. Other benefits might include low or no tax and better interest rates.

Corporate Account

The corporate account is for those who will be engaging in business offshore. This account is suitable for businesspersons and companies. A minimum capital amount will be required to open this account. This type of account is tailored towards businesses.

Investment Account

The investment account is for potential investors and presents an ideal environment for them to manage their wealth. The investment account is also classified as a financial tool as it enables investors to purchase bonds and stocks.

You can contact us if you need to speak to a financial advisor regarding which overseas bank account is suitable for you.

Private Bank Account

Private banking or private bank account is banking, financial services, investment and other services provided by banks to private individuals who invest large assets and money. The term private’ refers to personalised customer service that is provided to the customer, unlike that provided in retail-banking. Private banking services are specially tailored to provide clients a far more individual service.

Private bank accounts offer the usual range of services such as credit card services, loans and mortgage arrangements, including services like wealth management, investment services and fiduciary and trust services. In the past private banking was used only by royalty and upper class families or those who were considered as very rich’. However, today private banking is used by many people including sports professionals, businesspersons and many others.

Wealth Management

Your account manager will be able to guide you in choosing the right investment products and help you with wealth management.

You can also choose to be actively involved in managing your investment portfolio or have it managed by your account manager.

Benefits Of A Private Bank Account

There are several benefits you can receive when you open a private bank account.

Individual Service

When you open a private bank account you will be able to receive individual service from the bank. When compared with the service received from a high-street bank’, the service you receive with a private bank account is much more beneficial.

Financial Advice

With a private bank account, you will be able to receive sound financial advice from your account manager. The account manager will be able to give you advice based on your financial situation.

Personal Contact

You will not have to worry about speaking to a call centre staff or ordinary bank office staff; you will be dealing directly with your account manager. This way you will not have to deal with staff who do not know your needs and who cannot answer your questions.

Privacy

Private bank accounts are private’ as the term suggests. Your details are held in strict confidentiality and your financial matters are not shared with any person.

Best Jurisdiction

There are several popular jurisdictions for opening a private bank account. However, when choosing the bank it is important that you look at the tax laws of that jurisdiction before opening an account with a bank there.

Hong Kong is a popular offshore jurisdiction for opening a private bank account. The low tax rate and the political and economic stability play an important part in making a country a favourable location for private banking. Hong Kong follows the territorial principle of taxation, which means that not only is the tax rate low but it means that corporate tax and salary tax which is also known as personal income tax’ are levied only on income or profits earned in Hong Kong. All income and profits derived from outside the country are non-taxable.

You can contact us and speak to our financial advisor regarding opening a private bank account.

Offshore Savings

Having an offshore savings account is not the same as having a normal savings account at one of the local banks in your city/country. Firstly, an offshore savings account is a bank account that is held in a bank located outside your country of residence, in what is commonly known as tax havens’ or low or zero tax jurisdictions’.

Offshore banks operate under a different set of laws and hence can offer you a variety of benefits that normal banks located inside your country of residence cannot. With an offshore bank, fees are generally non-existent and yields are higher, this is because offshore banks have very low operating costs.

What You Should Know

With the advent of the information age and the possibility of investing in international markets, businesspersons and companies are constantly finding ways to improve their business by investing globally. Offshore banks offer clients the possibility of investing in international markets and increase their profits.

There are several popular jurisdictions where you can open an offshore savings account. You will need to look into the offshore jurisdiction and its political and economic stability before opening an account with a bank there. Another important factor is to check the tax implications of that jurisdiction. Once you have chosen the offshore jurisdictions, you will need to select the right bank. Check what facilities and services the bank provides and decide on what kind of account you want to open.

Benefits Of Offshore Savings

There are several benefits you can receive with an offshore savings account. Here are some of the basic advantages. Not all banks offer the same services, so it is recommended to check with the bank before opening an account there.

Security

Offshore savings accounts offer better security for your assets. This is because of the privacy laws of the offshore jurisdiction. Your identity is kept strictly confidential and only the bank and its trusted officials will be aware of its clients. When you park your assets in an offshore savings account, you can be sure your assets will be safe from lawsuits or any other risk.

Low Investment Risk

Offshore savings accounts have low investment risk. With the given economic condition in today’s world, no one wants to invest and lose their money. With an offshore savings account, the risk of losing your money is very low. Offshore banks offer higher interest rates and the money in your offshore savings account will earn more interest than in a local bank savings account.

Short-Term Deposits

Some banks offer attractive interest rates for short-term deposits. You will need to check with the bank for rates. Short-term deposit rates are generally more in offshore banks.

Investments

With an offshore savings account, you will have the possibility of investing in international markets. Most offshore jurisdictions do not charge tax on income derived from international investments. You will need to talk to your financial advisor about tax implications before investing internationally.

You can contact us and speak to our financial advisor regarding offshore savings. Talk to a professional before opening an offshore bank account.

John Lawson

John Lawson

John advises business, individuals, and organisations on pension planning. As you’ve probably realised by now, we’re invested in helping people like yourself understand a little bit more about how equity release options work.

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