The main issues that you should consider when developing your international banking strategy are the ease of use, the convenience of services, and the reliability of the chosen bank. Many foreign banks offer the possibility of opening personal and corporate accounts remotely. Before starting with your plans, we recommend that you analyze How to open an international bank account online. What details should be taken into account when choosing the location of the bank?
Why do we need an international bank account?
Having an international account is becoming increasingly common among natural persons. Some of them open accounts abroad to protect their assets. Some seek to take advantage of the high-interest rates on deposits, and those who wish to open a bank account in foreign territory to obtain confidentiality.
In simple words, offshore banking is the transfer of your money to a financial institution that is not in your country. You can choose any country in the world to open a personal foreign account.
There is a set of prevalent countries among those who wish to save their money in a secure bank account abroad. This strategy provides confidentiality to the investor and significantly expands the range of services available to them. A personal account at an offshore bank offers several advantages:
Foreign financial centres provide easy access to global commercial opportunities and trends that reduce your country’s political and economic risk exposure.
Accessibility and flexibility:
Foreign banks focus on the flexibility of their products. The main objective is to provide global access to each client’s savings. Availability is provided through online banking, with which you can perform any operation regardless of the location where the customer is located.
Foreign accounts have a higher level of protection against state and commercial structures.
Confidentiality and security:
Offshore centres focus on asset security and maintaining confidentiality regarding their customers.
Based on the points, we can conclude that a personal account in an offshore bank makes available the use of new banking products and provides a high level of security.
How to choose the right country?
Before opening an account at an international bank, make sure that the institution is not only reliable and liquid but also meets all your needs and requirements. There are several factors that you should consider before placing your trust in a particular foreign bank.
- The first thing to pay attention to is the costs associated with the account. Opening and maintenance fees vary from bank to bank.
- Most banks also require customers to make a minimum deposit to ensure their reliability. For example, the minimum amount is 5000 EUR in Switzerland; in Portugal, the deposit will be EUR 35 000, and in Vanuatu, 1500. Each of these offshore territories is reliable and attractive, but the conditions for opening an account in them differ, so they must be analyzed in advance.
- Another important nuance is the rate plan: banks must charge commissions for their services, but these should not be too high or, otherwise, you could run out of anything.
How to open an international bank account online?
Foreign banks have long been practising the opening of personal accounts without requiring the presence of the interested party, which means that you should not take a plane or go to a personal interview to obtain the desired service.
Each financial institution values its reputation and the security of client funds differently; Therefore, the opening procedure and the requirements regarding documents differ between the various jurisdictions.
Five steps to open an online bank account
What are the requirements to open an online bank account?
Below, we list the main steps to consider:
1. Compare between the online offer
Before creating an online bank account, we recommend carefully assessing all possible options. To do this, we must take into account different aspects, such as:
- If it is a commission-free account
- If they offer free debit card and credit card
- If they provide other banking products such as loans, mortgages, etc.
- If it is possible or not to add any other cardholder and if he will receive a free card
2. Read the ‘small print.’
Before opening an online bank account, it is advisable to read the conditions of the contract to avoid future penalties or unpleasant surprises. Accounts without commissions offered by the central banking entities usually request at least one of the following requirements:
- Address a payroll or recurring income
- Maintain a 100% online profile
- Sending information by email
- Perform specific movements with the associated card
3. Fill in the form
On the website or through the bank’s app, we will find a form that we will have to fill in with our data to register as new customers. Name, surname, contact phone number, DNI or NIE number, email, or current address are just some of the boxes that we must fill in.
4. Make a video call or provide another IBAN
Opening an online account through the bank’s application will allow us to start trading in just 10 minutes. However, if we do it through the website, depending on the entity, we will have to wait between 3 and 7 business days in the worst case.
Most banks offer two options to verify our identity: provide the number of a checking account in which we already appear as holders or make a video call. In that case, we will need:
- Our smartphone
- DNI or NIE
- Being in a room with light and no noise
Once the videoconference is finished, we will be ready to start operating. However, it will be necessary to wait between 2 and 10 business days to receive the debit or credit card associated with the account at our address or address that we indicate.
5. Activate the account and associated cards
Once we receive the debit or credit card associated with the account we have hired, we will have to activate it, and each bank has its method:
Through the mobile application as it happens
It is valid for you to wonder about how to open an international bank account online. We understand your need ad, that’s why this article is going to help you. Go through it and let us know if there is anything more you need to know.