How to choose a foreign bank account for a small startup
The right choice of account in the bank will allow you to quickly track costs and profit as well as will ensure quality service in the banks. At the same time, it is necessary to determine in advance what type of account is appropriate for a particular business. The choice of a bank organization depends on the number of funds and the purposes of account creation. You can consult our experts with IT-OFFSHORE about opening a bank account.
How to find an advantageous offer in a foreign bank
First you need to determine how the account will be used. By answering this question, you can determine the parameters that are needed to compare the offers of different banks.
After determining what functions the account should perform, it is possible to determine exactly what the account should be used for. If an account is required to operate with investment savings, a high interest rate deposit account will be needed. Another account, a current account, will be required for daily use and production work, which should be accessible 24 hours a day.
The size of the business needs to be determined. Some savings accounts require a certain number of funds to be opened or can be used free of charge when maintaining an account balance. There are accounts that require interest to be paid if the account balance is higher than the required amount. It is recommended that you choose a bank that has minimum conditions for the balance at the beginning of the job.
It is necessary to determine which functions of the bank are required and which functions can be used later. In addition, it is important to decide on the business - it will help to choose a financial partner correctly.
It is recommended to specify the right to use special programs, for example, at conducting noncommercial activity. In this case it is possible to execute the special account which assumes the minimum commission or its absence.
Types of accounts
A commercial foreign account with a bank allows you to buy assets, save money for new projects and receive payments from customers. Besides that, the account can be used for tracking the movement of funds.
There are three main account types in total. The peculiarity of the current account is that the company can deposit and withdraw cash to its account abroad, using a card (including electronic) and checks. Financial institutions offer different types of accounts, some of which have transaction limits or provide full access.
A savings account is relevant if you want interest to be accrued on the number of funds. It is possible that a minimum deposit amount will be required; the storage conditions are individual and depend on different factors. The certificate of deposit is intended for depositing funds for a fixed time with fixed interest. At the early withdrawal of money, there is a risk of penalty.
Creating an account with a foreign bank
Before creating an account, it is necessary to determine which one is required for business development and why it should be opened. It is necessary to understand how access to the account will be organized in the future, whether it is necessary to have several owners, and if you would need to open an account with one or more banks in order to share financial risks.
Once these questions are answered, it is necessary to choose a country and a financial organization that is most optimal for doing business with investors, partners and clients.
Here are the nuances that should be considered when choosing a bank:
- Availability of fees, requirements for exemption from paying them;
- The bank offers a competitive rate on the account;
- The convenience of the online - bank, availability of mobile application;
- Availability of personnel who speak different languages;
- Availability of funds.
The advantage of opening a foreign account is that it is possible to separate personal and business funds. The activity looks the most professional and credible. The downside is that some banks may charge high commissions and various fees. There is also a need to report foreign accounts to tax authorities.