In this article, we’re sharing how to open a private bank account in Bermuda for foreign non-resident individuals and entities.
This will include the specific client profiles that can benefit from private banking in the British Overseas Territory of Bermuda, the benefits they can expect, and which alternative jurisdictions you may want to consider instead of Bermuda when it comes to private banking.
If you would like access to our free Bermuda banking series, click the link above and unlock our team’s expert take on Bermudian banks, Bermuda banking requirements, personal and business banking in Bermuda, and much more.
You can also use the table of contents and jump to the section that matches your private banking needs in Bermuda.
Table of Contents
- Open a Private Bank Account in Bermuda
- Who Can Open Private Bank Accounts in Bermuda?
- How to Open a Private Non-Resident Bank Account in Bermuda?
- Bermuda Banking System: Private Banking
- Frequently Asked Bermuda Banking Questions
- Ready to Open an Offshore Bank Account?
Open a Private Bank Account in Bermuda
Bermuda private bank accounts can be opened by foreign non-residents and wealth management entities from around the world. While deposit requirements vary, most Bermuda banks expect a minimum deposit between USD 250,000 and USD 1,000,000.
Importantly, Bermuda is primarily a banking jurisdiction catering to individuals in need of wealth management, private banking, and related services. With this in mind, the renowned banking organizations and the best banks in Bermuda are well-placed to serve individuals and entities seeking private banking services.
Additionally, while it is possible to open a wide range of bank accounts here, a non-resident account and a Bermuda personal bank account will tend to be focused on private banking. On the other hand, foreign entities looking to open a Bermuda business bank account will find both commercial banking and investment services available.
In short, different clients may benefit from establishing a private banking relationship with a financial institution in Bermuda. This is especially true for individuals who can meet a qualified deposit level, can invest via available banking products, and institutional clients with a lot of money.
Additionally, anyone seeking tax advisory, structuring, and other related services may also benefit from banking here. However, when seeking specialized services, it’s important to confirm that advisors are versed in the specific objectives, jurisdictions, and profiles involved.
Next, let’s take a look at who can open private bank accounts in Bermuda.
Who Can Open Private Bank Accounts in Bermuda?
Private bank accounts in Bermuda can be opened by a range of individuals and entities. However, each bank has its own acceptance criteria, which are usually determined by citizenship, residency, risk profile, banking activities, and available deposits. That said, foreign non-residents, foreign residents, and wealth management entities are eligible for Bermuda private banking.
For clarity, wealth management entities include trusts, foundations, and holding companies. When it comes to banking in Bermuda, these wealth management entities can be structured in Bermuda or in foreign and offshore jurisdictions and can typically access account holdings and Bermuda offshore banking with a qualifying deposit.
In short, there are several key criteria that will determine whether an individual or entity can open a private bank account in Bermuda, which includes whether the applicant can pass the basic Bermudian AML and KYC process and whether they can make a qualifying deposit with a Bermudian bank.
How Much Do Bermuda Banks Want You to Deposit?
In most cases, the roster of banking firms and the list of banks in Bermuda expect clients to deposit a minimum of USD 250,000 to USD 1,000,000 in order to open a private bank account. This deposit level is typically determined by the bank’s assessment of the client’s risk profile, banking activities, and planned investments with the bank.
As we’ll explain below, we view these deposit requirements as reasonable to high, depending on which end of the range applicants are being asked to deposit. This assessment is in direct comparison to the value, sophistication, service, and products that Bermudian banks offer in comparison to more established private banking hubs. This is true whether you’re comparing the smaller banks, or highly reputable institutions to the the largest banks in Bermuda.
Who Should Open Private Bank Accounts in Bermuda?
Due to the account opening obligations, Bermuda banking requirements, and the availability of private banking hubs with similar deposit levels, most individuals should consider all of the available private banking options before applying to Bermuda banks.
However, private banking in Bermuda can offer value to certain client profiles. These profiles include individuals who can meet the qualifying deposit level and are looking to invest in products offered by Bermudian banks. With this in mind, here is a look at the common benefits that people can expect when opening a private bank account in Bermuda.
Benefits of Opening Private Bank Accounts in Bermuda?
- Lower deposit levels compared to other private banking jurisdictions
- Stable and reputable international banks
- Pristine banking reputation
- Attractive private banking and wealth management services
- Caters to both individual and institutional investors
- And more
Not surprisingly, Bermudian citizens and residents will likely unlock different perks and benefits of banking in Bermuda than non-residents.
If you fit into the categories mentioned above or you’re specifically seeking one of the above benefits, private banking in Bermuda may be worth exploring.
How to Open a Private Non-Resident Bank Account in Bermuda?
To open a private non-resident bank account in Bermuda, individuals need to complete the following steps:
- Select a Bermudian bank that accepts your client profile and matches your desired private banking services
- Complete the Bermudian bank’s account opening application, including the standard KYC and AML questionnaires
- Obtain necessary document verifications requested by the Bermudian bank
- If you are opening a private bank account in Bermuda remotely, you may need to mail original copies of all documents to Bermuda
- After the account opening process is complete, the Bermudian bank will give you between one and two weeks to make the account opening deposit
It’s important to note that each Bermudian bank has slightly different deposit requirements. With this in mind, it’s important to explore all of the private banking options in Bermuda to find banks that you qualify for before applying.
And, as mentioned above, you should also compare Bermuda’s banking system to other alternative options. This is especially true when opening private bank accounts in Bermuda, which demands a higher level of sophistication.
With this in mind, let’s take a look at the Bermudian banking system, specifically for private banking, and see how it stacks up to global alternatives.
Bermuda Banking System: Private Banking
Bermuda’s banking system in terms of private banking is well established and involves the delivery of sophisticated private banking and wealth management solutions. This is thanks, in large part, to the approach of Bermudian bank regulators and both Bermudian and foreign banks active in the jurisdiction.
That said, there are more alternative private banking hubs available elsewhere. And, in most cases, these other private banking hubs require the same level of deposits as opening a private bank account in Bermuda.
With this in mind, instead of accessing sophisticated wealth management solutions and Bermuda banking services, you could open accounts in jurisdictions like Andorra, the Cayman Islands, Singapore, Liechtenstein, or Switzerland with similar deposits, if they better match your needs.
That said, there are certain catalysts that may make banking in Bermuda unavoidable. One of these reasons includes gaining direct access to the Bermudian Dollar, the currency of Bermuda. On the other hand, if you need to make frequent transfers, send money to Bermuda, or send transfers out of Bermuda, then opening a bank account in the country can also make sense.
Here is a look at some of the alternative jurisdictions that you might want to consider instead of opening a private bank account in Bermuda.
Alternatives to a Bermuda Private Bank Account
- Andorra
- Austria
- Cayman Islands
- Singapore
- Switzerland
- Liechtenstein
When comparing jurisdictions, you should look at the specific economic hazards and risks of banking in Bermuda against the alternatives that you’re considering. Likewise, the expected financial expenses and Bermuda banking costs including both opening and maintaining accounts should also be considered.
If you would like to explore any of these alternatives, you can access banks in each of these countries in the GlobalBanks IQ Database. Use the link below to learn more about GlobalBanks IQ now.
Frequently Asked Bermuda Banking Questions
Below are a few of the most common questions we receive from people considering private bank accounts in Bermuda. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can a Foreigner Open a Bank Account in Bermuda?
Yes, a foreigner can open a bank account in Bermuda. In fact, most nationalities and residencies can open bank accounts here. That said, clients need to meet the account opening requirements, complete standard due diligence, and make a qualifying deposit.
How to Open a Personal Bank Account in Bermuda?
Personal bank accounts can be opened in Bermuda by foreign non-residents from most countries. However, it’s important to note that personal banking in Bermuda for foreign non-residents tends to involve opening private bank accounts. With this in mind, individuals seeking transactional and basic offshore banking should consider opening elsewhere instead.
Can I Get a Private Bank Account?
Whether you can get a private bank depends on your client profile, banking objectives, and your available deposit. In short, private banking is reserved for individuals and entities in need of concierge-like banking services. In other words, people who are looking for customized financial services, including asset planning, wealth management, or tax advisory may benefit from opening a private bank account.
Ready to Open an Offshore Bank Account?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
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And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
Use this link to see how GlobalBanks Insider can help you successfully open accounts.
