The costs of banking in Barbados vary depending on the applicant’s personal ties to Barbados, local economic substance, Barbados banking requirements, how they plan to open a Barbados bank account, and their account activity.
We’ll dig into each of these cost variables for Barbados below. Alternatively, if you would like access to our free Barbadian banking series, click the link above and unlock our team’s expert take on Barbados banks, Barbados opening requirements, sending money to Barbados, and much more.
You can also use the table of contents and jump to the section that matches your Barbados banking needs and continue learning about the costs of banking in Barbados.
Table of Contents
- Costs of Banking in Barbados?
- How Much Does It Cost to Open a Bank Account in Barbados?
- Costs of Operating a Bank Account in Barbados?
- Frequently Asked Barbados Banking Questions
- Ready to Open an Offshore Bank Account?
Costs of Banking in Barbados?
The costs of banking in Barbados are moderately expensive and include account maintenance fees, service fees, private banking and wealth management-related fees, and transfer fees. In terms of account maintenance fees, most banks charge between USD 10 to USD 50 per month. That said, banks in Barbados offer fixed deposit accounts and other investment products that can offset the costs of banking in Barbados.
Of course, different client profiles will incur different expenses. So, in this section, we will start with a general look at the relevant expenses when opening an offshore bank account in Barbados. This will then be followed by individual finance services with Barbados personal bank accounts, Barbados business bank accounts, as well as Barbados private bank accounts.
Key Takeaways
- Barbados is a moderately expensive banking jurisdiction
- Account opening fees are rare for most applicants in Barbados
- Monthly account fees can be high for non-residents and foreign entities
- Transaction fees are high but standard for offshore banking
- Deposit requirements are reasonable for the accounts offered
- Private banking and wealth management fees should be carefully reviewed prior to opening
To begin, let’s explore how much it costs to open a bank account in Barbados, broken down by account type.
How Much Does it Cost to Open a Bank Account in Barbados?
When it comes to opening and operating a bank account in Barbados, there are seven (6) main expense categories that Barbados banks typically charge individuals and entities. That said, the costs will vary depending on which Barbadian bank you have accounts with and your client profile. But, generally speaking, banking entities and banks in Barbados have been known to charge compliance and due diligence fees, account maintenance fees, transfer fees (domestic and international), debit and credit card fees, private banking and wealth management fees, and fees for special requests.
Costs to Open and Operate a Bank Account in Barbados
- Compliance and due diligence fees
- Account maintenance fees
- Transfer fees (domestic and international)
- Debit and credit card fees
- Private banking and wealth management fees
- Fees for special requests
- And more…
Importantly, banks in Barbados vary widely in the way they charge fees to foreign and non-resident individuals and entities. Unfortunately, regardless of whether you bank with one of the global financial companies, the largest banks in Barbados, or a smaller bank that serves non-resident clients, you will need to compare fees before applying. Likewise, while foreigners with Barbadian residency can access a wide range of banks in Barbados, non-residents with no ties to Barbados will have limited (and more expensive) banking options to choose from. So, needless to say, it’s best to review all of your banking options in Barbados to ensure you’re choosing premier financial providers and the best banks in Barbados for you or your entity.
That said, there are additional fees that you may be charged when opening a bank account in Barbados. With this in mind, let’s look at the extra charges and explore how much it really costs to open offshore bank accounts in Barbados below.
How Much Does it Cost to Open Offshore Bank Accounts in Barbados?
Offshore bank accounts in Barbados can include personal bank accounts, business bank accounts, or private bank accounts that are opened by foreign non-resident individuals and entities. We will cover each of these accounts and their Barbados-specific cost considerations below.
But first, we want to discuss the costs that everyone should expect when opening a bank account in Barbados. These costs center around the onboarding procedures and Barbados banking requirements that most Barbadian banks will require you to provide. More specifically, the costs involved with obtaining documents from other banks and jurisdictions.
Barbados Account Opening Document Costs
- Bank reference letters (Certain banks charge fees)
- Document authentication (Required in certain instances)
- Certificate of good standing (Certain entities older than one year)
- Sending documents to the bank by courier (Sometimes required)
Of course, if you are planning on visiting Bridgetown (the capital city of Barbados) to open your Barbadian bank account in person, you will have many more (and much higher) expenses to consider as well.
If you are looking for cross-border banking services with offshore banking in Barbados, you can use this link to access our free guide.
On the other hand, if you are looking to open a personal bank account in Barbados, here are the Barbados-specific costs to be aware of.
How Much Does it Cost to Open Personal Bank Accounts in Barbados?
Whether you are a Barbadian permanent resident or a non-resident of Barbados, you can open a Barbados bank account without paying application or opening fees. Of course, you still need to pass each bank’s onboarding and compliance process. And, in many cases, local ties will be required by both local and international banks.
Additionally, it’s important to note that certain individuals that Barbados banks deem high-risk may need to pay additional due diligence and compliance fees. However, this is common in many offshore banking jurisdictions and typically only applies to individuals with very high-risk profiles.
Alternatively, if you are looking to open a business bank account in Barbados, here are the Barbados-specific costs to be aware of.
How Much Does it Cost to Open Business Bank Accounts in Barbados?
Barbados has more than 40 double tax agreements in place, making it an attractive banking jurisdiction for offshore commercial entities seeking investment opportunities.
Not surprisingly, there can often be additional costs involved in applying for a Barbados business bank account for foreign non-resident and offshore entities. This is primarily caused by the need to provide multiple documents, supporting letters, and the possible requirement of showing up in person in Barbados to open an account.
With this in mind, we suggest reviewing our free guide on opening a corporate deposit account or a business bank account in Barbados before deciding where to apply.
On the other hand, if you are looking to open a private bank account in Barbados, here are the main costs to be aware of.
How Much Does it Cost to Open Private Bank Accounts in Barbados?
Unlike personal and business banking, private banking has a long list of costs that prospective customers need to consider. This is true whether you are looking to open private bank accounts in Barbados, Bermuda, Panama, or any other banking jurisdiction.
Barbados Private Banking Costs to Consider
- Outbound transaction fees from Barbados to abroad
- Fees for managing and executing investments
- Fees for executing international investments outside of Barbados
- Discretionary management fees charged by banks in Barbados
- Active advisory fees charged by banks in Barbados
- Fees for related services like accounting support, structuring, etc.
- And much more
In most cases, the costs to open a high-net-worth bank account to access private banking in Barbados are relatively high considering the services provided.
This is especially true when comparing Barbados to other private banking jurisdictions. Likewise, every jurisdiction has something different to offer when it comes to private banking. So, if you are looking to access bank account incentives and specific banking benefits in Barbados, you should compare a few similar jurisdictions as well before starting to apply.
Costs of Operating a Bank Account in Barbados?
To recap, the costs of operating a bank account in Barbados will differ depending on the type of account and client profile. That said, the monetary solutions and banking services in Barbados that the client uses will also impact the costs associated with banking in the country. With this in mind, here is a look at the typical costs that you can expect when operating a bank account in Barbados.
How Much Are Bank Fees in Barbados?
The following are examples of standard bank fees charged by banks in Barbados. Before applying for a bank account in Barbados, always request an up-to-date fee list from each Barbadian bank you are considering.
- Account maintenance in Barbados: Minimum $10.00
- Inbound SWIFT fees in Barbados: $25.00
- Outbound SWIFT fees in Barbados: $25.00 (and higher depending on transaction value)
- Inbound Barbados transfers: $0.00
- Outbound Barbados transfers: $10.00 (and higher depending on transaction value)
It’s important to note that Barbados banks will charge additional fees as well, including fees for falling below the minimum account balance and fees for using your Barbados ATM card. Additionally, if you plan on opening a multicurrency account (e.g. a USD account) in addition to a Barbadian Dollar (BBD) account, the currency of Barbados, you should confirm whether balance requirements are applied to each account or the total relationship balance.
How Much Does It Cost to Use an ATM in Barbados?
The following are examples of the costs of using an ATM card issued by banks in Barbados. That said, each Barbados bank will set its own fees. So, before using a Barbadian ATM card abroad, be sure to confirm all relevant fees with the bank.
- Domestic ATM fees in Barbados: Up to $3.00
- International ATM fees outside of Barbados: Up to $6.00
How Much Does it Cost to Transfer Money to Barbados?
The following are examples of how much it would cost to make an international digital transfer to send money to Barbados from the United States using bank transfers via SWIFT, money transfer providers like Western Union, and digital transfer services like Wise.
- International bank transfers to Barbados: $3.00 to $12.00 (and higher depending on transaction value)
- International money transfer to Barbados: $1.99 to $2.99 (and higher depending on transaction value)
- Digital transfer service to Barbados: min. $2.99 (and higher depending on transaction value)
Importantly, because Barbados is listed on the FATF greylist, it’s possible that international banks may require additional compliance and due diligence checks prior to sending money to Barbados. If these additional steps are required, extra fees may be applied to the transfer.
What Are the Other Costs of Banking in Barbados?
Generally speaking, the costs of banking in Barbados are considered moderately expensive for foreign non-residents. However, as an offshore and private banking jurisdiction, the level of fees in Barbados is to be expected. That said, different client risk profiles can experience additional expenses in terms of onboarding and account maintenance beyond the standard fees charged by banks.
Of course, if you plan on visiting Bridgetown (or another location in Barbados) to open a Barbados bank account, you will need to pay for flights, hotels, transportation, and daily expenses. However, it’s important to note that showing up in Barbados does not guarantee account opening success. This is especially true since there are only a handful of banks in Barbados that accept foreign non-residents.
Additionally, certain individuals need to consider the additional costs of disclosing and making tax-related filings about their bank account in Barbados to their home country. For example, US citizens are required to complete an FBAR (FinCen 114) and Form 8938 when their Barbados bank account (and other foreign accounts) surpass certain thresholds.
Lastly, like everywhere, it’s important to note that there are cash management concerns and risks when banking in Barbados. So, be sure to use the available resources shared above in order to navigate your options and find the best country and bank for your needs.
Frequently Asked Barbados Banking Questions
Below are a few questions we receive from people exploring the costs of banking in Barbados. If you have further questions you would like answered about Barbados banking don’t hesitate to contact us.
What Are the Three Main Fees that Banks Charge?
The three main fees that banks charge include account maintenance fees, transfer fees, and withdrawal fees. That said, banks can charge additional fees, including check fees, debit card fees, safety deposit box fees, and fees for special bank requests. These fees can vary widely depending on the bank, account type, and client in question. So, it’s important to confirm the bank-specific fee structure before choosing where to open an account.
Which Bank Is Best in Barbados?
The bank that is the best in Barbados will depend on the client looking to open an account. This is because the profile, needs, and priorities of one client will differ from others. That said, Barbados is home to both local and international banks offering a wide range of services, opening requirements, and levels of quality. So, most people with ties to Barbados or a desire to bank here can find suitable account opening options.
What Is the Most Common Banking Fee?
The most common banking fee is the fee that banks charge for transferring funds. That said, banks also charge a number of other fees, especially to foreign non-resident individuals and entities. These additional fees include overdraft fees, wire transfer fees, account closing fees, ATM fees, insufficient funds fees, and more. Needless to say, it’s important to confirm the bank’s fee structure before applying to open an account.
Ready to Open an Offshore Bank Account?
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