Opening a U.S. bank account as a foreigner.
The strong economy of the U.S. offers a lot for foreign investors that want to benefit by doing business with American companies. Instead of using difficult or expensive payment methods, many are seeking the United States banking system to hold their funds made in the country.
Why Choose Offshore Banking?
One of the biggest draws to offshore banking is security. For some, depositing money into a bank in their home country is not safe. Luckily, you can choose a country that has historically had higher regulations, transparent jurisdictions, and an all-around more secure banking system. This is also beneficial for those who have chosen to expatriate. Many expat destinations don’t have the safest banks.
For those feeling the restriction of the investment opportunities at home, offshore banks offer a wide choice of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio.
There are tax benefits to international banking. Depending on where your home country is, you may catch some tax breaks for holding your money outside of your tax jurisdiction. Some countries even offer incentives to foreign investors through favorable tax rates in order to attract outside wealth.
Holding money abroad has also proven to be a smart asset protection technique. In the event in which it’s needed, having money in an offshore account can assure you don’t lose everything. Confidentiality is another leading advantage of banking overseas. Many countries have laws that hold banks to strict confidentiality with serious consequences if it is broken.
Why Choose the United States?
As one of the largest economies in the world, there is no question why someone outside of the U.S. may want to open a bank account in the country. With diversification opportunities, investment managing, and forex trading, many are seeking the U.S. as their offshore banking destination. Many of these individuals work with U.S. businesses and, therefore, will want to pay through local methods. PayPal can be unreliable and International Wire Transfers can be expensive. Instead, they open a bank account in the United States.
Over the past couple years, the United States has made its mark on the offshore banking world, some even comparing it to the banking system of Switzerland, trying to catch up.
Opening a Bank Account as a Non-Resident
If you are not a citizen of the U.S., it is possible open a bank account. Every bank has different rules and regulations, but you will need to provide a passport and a secondary identification card, proof of address, an initial deposit, and a few other papers.
Minimum deposits can vary from bank to bank. The bank you choose will have different requirements.
The process of opening a U.S. bank account as a non-resident can be difficult, so instead, many choose to open a U.S. LLC as a business entity and then open a corporate bank account.
Other Banking Destinations
Banks play an important role in the Swiss economy. Because of this, Swiss banking is also highly regarded around the world. They are well known for sophisticated and discreet banking services. In 2018, it was reported that $7.5 trillion in assets are held in Swiss banks and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.
Holding a bank account in Switzerland is ideal for many, because their home country is not as economically nor politically stable as the Swiss government. They are worried about the security of their domestically stored funds.
Monaco offers a unique political and economic environment that can be great for banking and wealth management. Large private banks offer the usual cash counter, safety deposit box, direct deposit, and other usual banking services. Leading banks also offer investment services like multi-currency deposit accounts, equity and fixed income trading, precious metals, foreign exchange, and commodity trading platforms. Many also provide managed investment portfolio services.
Alpen Partners and Offshore Banking
If you need help opening a bank account in the United States, our advisors are more than ready to assist you in doing so. Although the process may seem complicated, we are familiar with the ins and outs of international banking and business. We may be able to find other banking solutions as well.
Alpen Partners partners with many banks around the world, the most significant and prestigious being in Monaco and Switzerland. Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.