"Is there an offshore bank that pays a competitive APR [Annual Percentage Rate] that still accepts American depositors..."
- Details
- Category: International Planning Q&A
- Published on Monday, 19 September 2011 21:36
- Written by Terry Coxon
Question from a US-based IM Member:
Q: "Is there an offshore bank that pays a competitive APR [Annual Percentage Rate] that still accepts American depositors. I contacted the top rated banks in the world and received the same answer always 'you need to have a physical address in our country to open an account.'
To be fair, I asked this very question at the 2010 Casey Summit in LV, and you suggested Canadian banks. My problem with this is the high cost of travel and the turndown I got from every Canadian Bank I contacted; again they all required a physical, local address. Sure I could travel 1200 miles and show up in person, hoping all along that they'll accept my application with my California address. But you would have to agree that that is a gamble considering they turned me down on the phone. Thanks for any further information."
A (by Terry Coxon): Yes, it is a gamble. You need to talk to a bank employee who understands the rules and the bank's policies and who won't simply reject your business out of hand. And you need to present yourself as a no-trouble customer. It would help to have a plain-vanilla reason for wanting the account, such as an expectation of making frequent visits to a particular locale in Canada. Bring an original utility bill that shows both your name and your physical address.
About Terry Coxon: Terry Coxon is the president of Passport Financial, Inc., a publishing company specializing in international financial planning, and a senior editor for Casey Research. Terry is the author of Keep What You Earn, Using Warrants and the co-author (with Harry Browne) of Inflation-Proofing Your Investments. He edited Harry Browne’s Special Reports for its 23 years of publication and all of Harry Browne’s investment books since 1974.
PLEASE NOTE: The information contained within this article is based on the best research we could find as of the date of publication. However, the world changes fast and information can become out of date relatively quickly. So, two points... First, before undertaking any action described in this material, please conduct your own due diligence and verify all facts. Second, if you happen to spot an out of date fact or figure (or even suspect something is out of date or false), simply get in touch with us and we'll look into it. International Man is a network made up of some very smart people - tax specialists, accountants, lawyers, analysts and many other talented individuals. As a group, we can create and maintain a very accurate and highly actionable resource for internationalization.
Nathan
Posted at 2011-09-21 11:22:51
Thank you Wesley Mouch! I, too, am looking to Canada to diversify out of the USD. One slight discovery, Dain Rauscher is the spelling I found on the internet.
I found out these (and other wealth management offices) are also listed RBC Wealth Management. They do indeed have offices in many states.
My recollection is RBC bought out a number of boutique wealth management firms in the USA, including Ferris Baker Watts in my area. It is unclear whether they offer "Canadian bank accounts" per se, but they are money managers and full service brokers.
It is certainly worth investigating and may bring greater success than a costly trip through Canada, stopping from door to door with only an American address. For the original question posted: There are 18 offices listed in California, click on Find US at the following link.
http://www.rbcwm-usa.com/DRP_1.0/Public_Site/Common_Pages/DRP_1.0VSectionIndex/1,5033,1-1-0-0,00.html
Hucklebuck
Posted at 2011-09-22 00:12:43
Opened a term deposit at Westpac in AUS last fall. Six year term at 7%, simple not compound. Standard savings account paying around 2% currently. No problem opening over the phone and internet.
Leslie Chill
Posted at 2011-10-14 18:20:48
You can open up an International offshore Account with "Caye International Bank " in Belize. They have very strong Banking regulations there and you can do it all over the Internet- I highly recommend it , their interest rates are rather good as well !
NTrepid
Posted at 2011-10-14 18:36:11
Question for Leslie: Upon reading several guru's recommendation of Caye International Bank" I sent them an email, then a followup email because I has questions not addressed on their web site. I have yet to hear back and it's been months. I just gave up, and became leery of them. How did you go about setting up your account, and did you have any difficulty?
Leslie Chill
Posted at 2012-01-18 05:30:28
It did take a little bit of extra effort via E-Mail but I filled out the forms that they sent over the Internet, got the required papers notarized,and voila there was my account all set up and ready to go- just accept the fact that it won't be done in a day - stick with it.
Ntrepid
Posted at 2012-01-18 22:27:16
It did take a little bit of extra effort via E-Mail but I filled out the forms that they sent over the Internet, got the required papers notarized,and voila there was my account all set up and ready to go- just accept the fact that it won't be done in a day - stick with it.
Thank You! I will try them again. They do have forms on their website, but I was disappointed that no one responded to email. In the meantime, I had no problem opening a small investment account (like a MM fund) in Mexico with a US address. I provided passport, USA home utility bill, and answered the usual questions about source of funds. Took about one hour.
wesley mouch
Posted at 2011-09-20 11:42:08
Royal Bank of Canada will open accounts for US citizens. You don't have to travel to Canada. You can visit a Dain Rausscher office in the US (owned by RBC) where they will do identity verification. In addition RBC has numerous branches in the US (esp Florida) although they are in the process of selling those. You can do much of the legwork over the phone. The initial response will be that "we do not do accounts for US citizens" but if you are persistent you can get it done - we did.
Reply to comment