Banking overseas?

[Mr. Laz]

anyone ever bank overseas? ING has banks in america and overseas.

interest rates in america are around 3%

interest rates overseas are more like 5%


part of that is because that bank doesn't have FDIC and can give a better rates ... that brings some extra risk.


pro/cons?


any hidden transfer costs etc? other risks?

[Mr. Laz]

bump me baby one more time

[wutamess]

I'd like to know more also.

[SCTrojan]

Banked in Germany for a few years, but it was more of a convenience account than anything else.

The only difference that stands out between that account and my stateside account was that they didn't do checking like over here. It was a significant emotional event to get a monetary note sent anywhere. They were more into electronic transactions.

Not much, but that is my experience.

[Mr. Laz]

Banked in Germany for a few years, but it was more of a convenience account than anything else.

The only difference that stands out between that account and my stateside account was that they didn't do checking like over here. It was a significant emotional event to get a monetary note sent anywhere. They were more into electronic transactions.

Not much, but that is my experience.

thanks for info ...

not trying to use it as a checking account, just more for interest rates.

some overseas banks have better rates for their savings account than i can find for CD's in the states.


i would being using electronic transfers almost exclusively

[Uncle_Ted]

I don't know the answer, but if I were to speculate ...

1. Deposits/withdrawals will be subject to currency conversion fees.

2. Your returns will be subject to currency fluctuations -- so you are sort of speculating on currency at the same time.

3. Are you sure the rates you've seen are for non-speculative "savings" accounts? Traditionally European banks offer a broader range of services and products than U.S. banks (though that has changed somewhat in the last 5 years due to the lifting of many restrictions on U.S. banks).

4. My understanding is that European banks charge more customer fees. (Wouldn't be surprised to learn that on some items we've passed them though).

5. Tax issues. I'm guessing you would have to pay Dutch tax on interest earned there. Can't imagine that would be lower than U.S. tax. Not sure how the setoffs work for taxes paid to foreign governments on non-U.S. income. (I think there's a tax guru around here somewhere...)

Also, FDIC insurance is very minimal (depending on the management and financial strength of the bank -- the weakest banks pay something like .27%, the strongest pay zero to .03%) so I doubt it counts for much of the difference. Not sure what kind of insurance european banks carry (if any) or what they pay for it.

That's my educated guess. Let us know if you find out the "real" answer!

[Skip Towne]

No FDIC? As Will Rogers said "I'm more concerned with the return of my money than the return on my money".

[Oz_Chief]

I have banked in the UK and Australia. I banked with Barcay's in the UK and Suncorp in Oz. I did so because I lived there. You are correct, interest can be up to 5%. I used to transfer money from the USA to these banks all the time and there is a transfer fee. I believe it was around $45 USD. The fee likely depends on your USA banking institution. I say look into it but be prepared for them to say that you to need a residence in the country. It might be possible to get around this though. My father was a pilot and I know he had a number of foreign bank account for convenience.

That's probably not much help but what the hell.

[Rain Man]

DEAR MR. LAZ,

I HOPE GOD'S GRACE IS WITH YOU. MY NAME IS MBUTU NDARNILA, AND I AM THE PRESIDENT OF NNDOGA NATIONAL BANK IN NIGERIA. A CUSTOMER OF OURS RECENTLY DIED IN A PLANE CRASH, AND LEFT UNCLAIMED A SERIES OF 5 PERCENT INVESTMENT OPPORTUNITIES...

[ROYC75]

DEAR MR. LAZ,

I HOPE GOD'S GRACE IS WITH YOU. MY NAME IS MBUTU NDARNILA, AND I AM THE PRESIDENT OF NNDOGA NATIONAL BANK IN NIGERIA. A CUSTOMER OF OURS RECENTLY DIED IN A PLANE CRASH, AND LEFT UNCLAIMED A SERIES OF 5 PERCENT INVESTMENT OPPORTUNITIES...


HA HA ..... My cousins best friends daddy is still alive, he will be here any minute.

[Mr. Laz]

FYI

Thank you for your email dated 29 April 2005.

The Savings Maximiser can only be opened by Australian citizens or permanent residents of Australia as individuals in their personal capacity.

Currently ING DIRECT has a presence in the following countries:

Canada (established May 1997)
Spain (established May 1999)
Australia (established August 1999)
France (established May 2000)
US (established September 2000)
Italy (established April 2001)
Germany (established August 2001)
UK (established May 2003)

However, the business in each country operates separately to all the others. As a result it is not possible to access another ING DIRECT product from a different country.

ING DIRECT can not accept amounts in foreign currency so we need all transactions to be made in Australian dollars. We also require the account to be linked to an external bank account within Australia.

For further information please call one of our Direct Associates available 24 hours a day, 7 days a week on 133 464 or + 61 2 9028 4077 (should you be overseas).

Regards

ING DIRECT

[BIG_DADDY]

Laz,

I went over this somewhat in the SS thread in the other forum. If you have a good chunk of money it makes sense to move a good portion offshore. Better tax treatment and protection from those that would sue you in order to take it.

[Mr. Laz]

Laz,

I went over this somewhat in the SS thread in the other forum. If you have a good chunk of money it makes sense to move a good portion offshore. Better tax treatment and protection from those that would sue you in order to take it.

that's what i'm trying to do ... but how do you move it offshore with the citizenship requirments and such?