The costs of banking in Bermuda vary depending on the applicant’s personal ties to Bermuda, local economic substance, Bermuda banking requirements, how they plan to open a Bermuda bank account, and their account activity.
We’ll dig into each of these cost variables for Bermuda below. On the other hand, if you would like access to our free banking series on the British Overseas Territory of Bermuda, click the link above and unlock our team’s expert take on Bermuda banks, Bermuda opening requirements, sending money to Bermuda, and much more.
You can also use the table of contents and jump to the section that matches your Bermuda banking needs and continue learning about the costs of banking in Bermuda.
Table of Contents
- Costs of Banking in Bermuda?
- How Much Does It Cost to Open a Bank Account in Bermuda?
- Costs of Operating a Bank Account in Bermuda?
- Frequently Asked Bermuda Banking Questions
- Ready to Open an Offshore Bank Account?
Costs of Banking in Bermuda?
The costs of banking in Bermuda include monthly maintenance fees, transaction fees, compliance & due-diligence fees, and fees related to private banking and wealth management services.
In general, Bermuda is moderately expensive when compared to other offshore banking jurisdictions. However, the stability and reputation of both Bermuda and the available banks help to offset the expense of banking here.
Additionally, it’s important to note that different client profiles will incur different expenses. This is true in most banking jurisdictions, but especially in private banking hubs that are willing to consider high-risk and complex client profiles, like Bermuda.
With this in mind, we will start with a general look at the relevant expenses when opening an offshore bank account in Bermuda. This will then be followed by Bermuda personal bank accounts, Bermuda business bank accounts, as well as Bermuda private bank accounts.
Key Bermuda Banking Costs Takeaways
- Bermuda is a moderately expensive banking jurisdiction
- Account opening fees are rare for most applicants
- Monthly account fees can be high for non-residents & entities
- Transaction fees are high but standard for offshore banking
- Deposit requirements are high compared to other Caribbean jurisdictions but low compared to jurisdictions with similar levels of sophistication and competence
To begin, let’s explore how much it costs to open a bank account in Bermuda, broken down by account type.
How Much Does it Cost to Open a Bank Account in Bermuda?
When it comes to opening and operating a bank account in Bermuda, there are five (6) expense categories that Bermudian banks typically charge individuals and entities. Not surprisingly, the costs will vary depending on which Bermudian bank you have accounts with and your client profile.
Generally speaking, the registered firms and list of banks in Bermuda have been known to charge compliance and due diligence fees, maintenance fees, transaction fees (domestic and international), fees for using payment cards locally and abroad, fees for special requests tied to the bank account and bank services, and private banking and wealth management fees.
Costs to Open and Operate a Bank Account in Bermuda
- Compliance and due diligence fees
- Account maintenance fees
- Transaction fees (in Bermuda and abroad)
- Payment card fees
- Fees for special requests
- Private banking and wealth management fees
Importantly, like elsewhere, banks in Bermuda vary in the way they charge fees to foreign and non-resident individuals and entities. Unfortunately, regardless of whether you bank with one of the two major institutions and largest banks in Bermuda or one of the two smaller options, you will need to compare fees before applying.
Likewise, while foreigners with Bermudian residency can access a wide range of banks in Bermuda, non-residents with no ties to Bermuda will usually be looking into private banking and wealth management services.
Not surprisingly, private banks have an entirely different set of fees that they charge clients. So, before opening accounts with the top-rated financial firm or best bank in Bermuda for you, be sure to consider the specific fees that you will be expected to pay.
How Much Does it Cost to Open Offshore Bank Accounts in Bermuda?
Offshore bank accounts in Bermuda can include personal bank accounts, business bank accounts, or private bank accounts. We will cover each of these accounts and their Bermuda-specific cost considerations below.
But first, we want to discuss the costs that everyone should expect when opening a bank account in Bermuda. These costs center around the bank’s opening process and Bermuda banking requirements that most financial institutions will ask prospects to provide. More specifically, the costs involved with obtaining documents from other banks and jurisdictions.
Bermuda 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 Hamilton (the capital city of Bermuda) to open your Bermudian bank account in person, you will have many more (and much higher) expenses to consider as well.
On the other hand, if you would like to open accounts remotely from the comfort of your home, this is possible if you can meet the opening requirements. To learn more about the opening requirements and how to navigate international financial services and Bermuda offshore banking, you can use this link to access our free guide.
Next, we’re going to explore the Bermuda-specific costs that individuals seeking personal accounts in Bermuda should consider.
How Much Does it Cost to Open Personal Bank Accounts in Bermuda?
Whether you are a Bermudian permanent resident or a non-resident of Bermuda, you can open a Bermuda bank account without paying application or opening fees. Of course, you still need to pass each bank’s onboarding and compliance process.
That said, certain individuals that Bermuda banks deem high-risk may need to pay additional due diligence and compliance costs. However, this is common in many offshore banking jurisdictions, especially for individuals with complex sources of wealth.
Alternatively, if you are looking to open a business bank account in Bermuda, here are the Bermuda-specific costs to be aware of.
How Much Does it Cost to Open Business Bank Accounts in Bermuda?
Bermuda is an attractive banking jurisdiction for multinationals, insurance companies, large investment funds, and wealth management structures with high deposit levels, large turnover, and the ability to invest in the bank’s services.
Not surprisingly, there can often be additional costs involved when applying for a Bermuda 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 Bermuda to open an account.
With this in mind, we suggest reviewing our free guide on how to open a commercial account or Bermuda business bank account before deciding where to apply.
On the other hand, if you are looking to open a private bank account in Bermuda, here are the main costs to be aware of.
How Much Does it Cost to Open Private Bank Accounts in Bermuda?
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 Bermuda, Guernsey, Switzerland, or any major private banking jurisdiction.
Bermuda Private Banking Costs to Consider
- Outbound transaction fees from Bermuda to abroad
- Fees for executing investments via your Bermuda bank
- Fees for executing international investments outside of Bermuda
- Discretionary management fees charged by Bermudian banks
- Active advisory fees charged by Bermudian banks
- Fees for related services like accounting support, structuring, etc.
- And much more
In most cases, the costs for luxury financial products and Bermuda private banking are moderately high considering the services provided. This is especially true when comparing Bermuda to other banking jurisdictions.
Likewise, every jurisdiction has something different to offer when it comes to private banking. So, if you are looking for specific product perks or Bermuda banking benefits, you may want to compare a few similar jurisdictions before deciding where to apply.
Costs of Operating a Bank Account in Bermuda?
To recap, the costs of operating a bank account in Bermuda will differ depending on the type of account and client profile. That said, the Bermudian financial products and Bermuda banking services 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 Bermuda.
How Much Are Bank Fees in Bermuda?
The following are examples of standard bank fees charged by banks in Bermuda. Before applying for a bank account in Bermuda, always request an up-to-date fee list from each Bermudian bank you are considering.
- Account maintenance in Bermuda: $10.00
- Inbound SWIFT fees in Bermuda: $8.00
- Outbound SWIFT fees in Bermuda: $30.00 (and higher depending on value)
- Inbound Bermuda transfers: $0.00
- Outbound Bermuda transfers: $5.00 (and higher depending on value)
It’s important to note that Bermuda banks will charge additional fees as well, including fees for falling below the minimum account balance and fees for using your Bermuda ATM card.
So, before opening accounts, you should confirm whether balance requirements are applied to each account (in the case of multicurrency) or if they only apply to your primary foreign currency or Bermudian Dollar (BMD) account, the currency of Bermuda.
How Much Does It Cost to Use an ATM in Bermuda?
The following are examples of the costs of using an ATM in Bermuda and abroad with Bermudian bank cards. That said, each bank in Bermuda will set its own fees. So, before using a Bermudian ATM card abroad, be sure to confirm all relevant fees with the bank.
- Domestic ATM fees in Bermuda: often free
- International ATM fees outside of Bermuda: $4.00 (and higher)
How Much Does it Cost to Transfer Money to Bermuda?
The following are examples of how much it would cost to make a cash transfer to send money to Bermuda 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 Bermuda: $5.99 to $18.99 (and higher)
- International money transfer to Bermuda: $13.99 (and higher)
- Digital transfer service to Bermuda: $13.99 (and higher)
What Are the Other Costs of Banking in Bermuda?
Generally speaking, the costs of operating an individual account, Bermuda personal bank account, business or private bank account in Bermuda are considered reasonable. However, different client profiles can experience additional expenses in terms of onboarding and account maintenance.
Of course, if you plan on visiting Hamilton in order to open a Bermuda bank account, you will need to pay for flights, hotels, transportation, and daily expenses.
However, it’s important to note that showing up in Bermuda does not guarantee account opening success. This is especially true since Bermuda banks have strict opening requirements for foreign non-residents.
Additionally, certain individuals need to consider the additional costs of disclosing and making tax-related filings about their bank account in Bermuda to their home country. For example, US citizens are required to complete an FBAR (FinCen 114) and Form 8938 when their Bermuda bank account (and other foreign accounts) surpass certain thresholds.
Lastly, like everywhere, it’s important to note that there are political concerns and risks to banking in Bermuda. 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 Bermuda Banking Questions
Below are a few questions we receive from people exploring the costs of banking in Bermuda. If you have further questions you would like answered, contact us directly.
What Are the Normal Fees Banks Charge?
The normal fees banks charge include account maintenance fees, transaction fees, overdraft fees, ATM fees, check fees, and more. Not surprisingly, depending on the bank and the type of account, you could experience additional fees. However, some fees can be avoided when using various bank products and meeting certain minimums. Needless to say, it’s important to review each bank’s fee structure before applying to open an account.
What Are 3 Fees That Banks Charge?
The three fees that most banks charge include account maintenance fees, transaction fees, and payment card fees. Of course, there are many different fees that banks can charge, which are important to consider prior to opening an account.
What Is the Most Common Bank Fee?
The most common fee that banks charge is a transaction fee, which can be charged for incoming and outgoing domestic and foreign transfers. Of course, the specific transaction fees charged by banks vary widely and can range from free in certain instances to several hundred dollars.
Ready to Open an Offshore Bank Account?
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