International deposit accounts in 2023
An international deposit account is an excellent way for international entrepreneurs to invest large sums for a fixed term while enjoying high interest rates on their deposit. Healy Consultants assists international Clients open deposit accounts in foreign jurisdictions with major banks including HSBC and Barclays. The following is an overview of the key characteristics of international deposit accounts, including their advantages and disadvantages.
- An international deposit account is an arrangement whereby an individual or organisation places cash in a foreign bank. The deposit typically has a fixed term of up to five years, during which access to the funds is restricted. This type of account is therefore unsuitable for international entrepreneurs who require ready access to their funds;
- Some banks refer to deposit accounts as “certificates of deposit”, or “CDs” for short. This terminology is preferred in the United States;
- Our Clients open international deposit accounts in all major foreign currencies. By holding funds in the currency in which they are received or needed to pay foreign suppliers, account holders minimise the impact of exchange rate volatility;
- An advantage of high interest deposit accounts is that they are available in major foreign currencies, including US Dollars, UK Sterling, Euros, Hong Kong Dollars, Singapore Dollars, Australian Dollars, and Japanese Yen;
- 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;
- Fixed deposit bank accounts are a widely popular option and are an excellent means of investment, allowing cash flows to be predetermined. The deposit period is flexible, ranging from just one week to 5 years. There will usually be restricted access with penalties for withdrawing the funds before the maturity date;
- Healy Consultants assists Clients open all types of international fixed deposit account, including the demand accounts, savings deposit accounts, and fixed term deposit accounts;
- Some international deposit accounts have restrictions on funds access and payment methods into the account. Healy Consultants will find an suitable deposit account which best meets the needs of our Clients;
- International deposit accounts can offer high interest rates that can be fixed for periods of up to five years. These style of bank accounts accrue interest daily and are credited quarterly;
- Deposit accounts can include 24 hour telephone and internet banking facilities;
- Healy Consultants assists Clients with all aspects of the deposit account opening process, including:
- Locating the most suitable jurisdiction for the account to provide the highest net returns given our Clients’ liquidity preferences. Our preferred jurisdictions for international deposit accounts are Singapore and Hong Kong;
- Finding the account with the most flexible terms and conditions, including competitive interest rates, low withholding taxes on interest and fewer restrictions on access to the account;
- Liaising with the bank during the account opening process, including completing account opening forms on behalf of our Client, paying in the initial deposit and advising our Client of the account opening approval, including forwarding details of the account’s internet login and password details and PINs.
It is important our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.