Eternity Law International — News — Choosing a bank to open an account

Choosing a bank to open an account

Published:
March 30, 2020

SELECTING A BANK FOR OPENING AN ACCOUNT FOR A BEGINNING BUSINESSMAN

Choosing a bank to open an account is one of the first steps for every startup. The most important stage for each startup is to create, think through and correctly draw up a financial plan. A good business plan can attract investors and allow you to go beyond the market of one country.

To work abroad, you will need to open an account with a foreign bank. A well-chosen bank will open up not only the possibility of cooperation with foreign partners and customers, but also allow you to control cash flows outside your country.

In the article we will help you decide which type of bank is right for your business, will provide profitable and convenient service.

HOW TO CHOOSE A BANK IN ANOTHER COUNTRY?

The choice of the right bank directly depends on the starting capital, the expected currency turnover and what services you plan to use. Therefore, in order to find a financial institution that meets your requirements, several important steps must be taken.

The first step is to narrow your search by choosing how to use the account. This will make it possible to clearly determine the functions of the future bank and to calculate the most suitable ones using the comparison method.

Knowing the requirements will help to establish cooperation with the compliance bank service. Such departments work in all banks, their main task is to check customers for compliance with the standards prescribed by law.

This service provides users with information about the work and opening an account. Therefore, if you want to cooperate fruitfully with a foreign bank on a long-term basis, you need to establish contact with its compliance service.

What will be your score, you can determine based on its main functions:

  • deposit account – suitable for the accumulation of profits, investment savings, for regular payments to investors on an ongoing basis, such an account has an increased interest rate;
  • current account – is characterized by easier and round-the-clock access, more suitable for everyday work in the field of active trade, production activities.

The second step is to calculate, determine the value of your business in cash. This must be done, as many banks require a certain amount, a minimum balance, to open an account.

Other banks are willing to work for free if you maintain a certain balance in your account. Some foreign financial institutions are willing to pay a high percentage when the balance sheet amount is above the expected minimum.

Based on this, we recommend that at the start of a new business give preference to banks with minimum requirements for account balance. This will protect you from over spending on bank interest.

The third step – determine the type of activity of your business. This information will help to more accurately determine the tasks and establish contact with the compliance service, which means it will be faster to make a choice among a large number of foreign banks.

The fourth step is to find out if you have privileges and special programs are available to you. If your activity is non-profit, then the bank can provide you with a special account where there will be access to a minimum or zero commission.

The fifth step is to collect information on the current account in your bank. Many domestic financial institutions do not actively advertise offers on savings accounts with a high interest rate. It is worth it to seek advice.

FEATURES OF A BUSINESS ACCOUNT IN A FOREIGN BANK

A commercial foreign business account at a bank allows you to buy new assets, make settlements on foreign accounts, receive payments and transfers from partners and clients, save money for new projects and business ideas.

There are three types of bank accounts.

1) A savings account is a place where liquid assets (free money) are stored, for the use of which the bank accrues certain interest. Such savings will help save up for a major purchase or save some of the money for more difficult times.

Such an account can be opened with a minimum deposit amount. The conditions for obtaining a savings account are individual in each bank and for each individual client, due to many characteristics and rules.

2) Current business account – characterized by the ability of the owner of a company or enterprise to deposit, withdraw funds from a foreign banking business account using checks and cards (electronic or plastic).

Such an account can be easily opened with a minimum deposit, and in some banks you will have to provide evidence of the existence and operation of your business and the personal presence of the founder / director of the company to open it.

There are many options for checking accounts – from those with open access to those where transactions have restrictions and limits.

3) Certificate of deposit – everything is fixed here: you can save money for a certain period of time with a constant interest.

This form of savings is beneficial on a long-term basis, it guarantees the return of your deposit. But if you need to withdraw money before the agreed time, the bank will pay a fine, which was also prescribed before the investment.

SELECTING A BANK FOR OPENING AN ACCOUNT ABROAD

The method of opening an account directly depends on the type of your activity, on the company that will work in another country, and on your goals for using the account.

There are banks where to open a foreign business account it is enough to fill out an online application.

And there are such financial and credit institutions where they require your personal arrival in the country to confirm intentions and provide full detailed information about the work of the company of the future client.

To finally understand and make sure you need to open a bank account in another country, answer a few important questions:

  • Why do you need a foreign savings account, what are its goals?
  • Is an additional source of income important to your business, or more important is financial stability?
  • if several people are needed to manage your business account, then it is better to consult a specialist – a lawyer will help you formulate the goals and objectives of your business account correctly, which is extremely important for the compliance service;
  • Consider splitting savings and current accounts with different banks to reduce the likelihood of a financial fiasco.

SELECTING A BANK ACCOUNT

The main task of a business account is to secure the finances of a company while it is engaged in its activities. The working conditions and opening of such an account differ in different banks.

Therefore, before choosing a financial structure for your investments, it is necessary to compare the proposed conditions of different banks. This will help you understand which option will work best with your case.

When choosing a bank or a foreign payment system, consider the following nuances:

  • bank fees – check with the applicant bank for the availability and size of the monthly fee, its benefits from such contributions and the ability to remove them;
    the importance of the account balance – what percentage the bank offers and for what amount;
  • characteristics of all banking services – check the availability of the functions of the mobile application, the work of online banking, credit lines, what are the conditions for insurance, leasing, accreditation;
  • the combination of services of this bank should contribute to the excellent work of your enterprise and its growth;
  • accessibility of work – for ease of use, your account should have several access options;
  • the presence of online banking and a branch is also a big plus when choosing;
  • check the working hours of the support service, whether your account has a personal manager, and whether the difference in time zones with the client (9-12 hours) for transferring funds will not become an obstacle.

If you still have questions about how to open an account with a foreign bank, please contact us. You will be provided with professional advice and complete information about choosing a payment system or bank in another country.

Eternity Law International specialists have been working for more than 10 years, therefore, they know the algorithms of compliance banking services around the world.

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