Foreign Currency Deposit Accounts

A foreign currency deposit account is an excellent way for entrepreneurs to invest large sums for a fixed period at high interest rates. On behalf of our clients Healy Consultants opens foreign currency deposit accounts with major banks such as HSBC or Barclays. The following is an overview of the key characteristics of foreign currency deposit accounts, including their advantages and disadvantages.

A foreign currency deposit account is an arrangement whereby an individual or organisation places a lump sum in an offshore bank. The deposit typically has a fixed term of up to five years, during which access to the funds is restricted. A foreign currency deposit account is therefore unsuitable for business people requiring easy access to funds.

Foreign currency deposit accounts are available in major currencies, thus minimising the effects of exchange rate fluctuations.

The structure of a foreign currency deposit account varies, but they typically accrue interest daily and are credited quarterly.

While available currencies vary from bank to bank, Healy Consultants assists clients to open an account in US Dollars, Pounds Sterling, Euros, Swiss Francs, Japanese Yen, Singapore Dollars, Hong Kong Dollars, Australian Dollars, New Zealand Dollars, or Canadian Dollars.

A feature of many foreign currency deposit accounts is that account holders spend less time on administration because there is no need to convert funds into certain currencies or buy currency to purchase from overseas suppliers.

International entrepreneurs request our assistance to open all types of foreign currency deposit accounts, including i) demand accounts ii) savings deposit accounts and iii) time deposit account.

The account typically includes 24 hour telephone and Internet banking. With banks such as HSBC, 24 hour banking allows customers to enjoy reduced rates on international money transfers

Healy Consultants assists clients with all foreign currency deposit account opening formalities, including:

• Locating the most suitable jurisdiction for the account. Our preferred jurisdictions for foreign currency deposit accounts are Singapore and Hong Kong, which have superior service standards;

• Finding the account with the most flexible terms and conditions, including competitive interest rates and fewer restrictions on account access;

• Liaising with the bank during account opening, including completing account opening forms on behalf of our client, paying in the initial deposit and advising our client of the account opening approval. Our banking team will effectively and efficiently forward bank account numbers, Internet login and password details and PINs, in sealed, secure envelopes.