Dividend Bank Account [Offshore Accounts]

If you’re looking to open a dividend bank account, you’re probably interested in securing the best possible return on your deposit.

With this in mind, we’re going to share where and how you can secure the highest rates possible (higher than your local credit union or bank).

As a bonus, we’ll also discuss how you can get higher rates as you open an offshore bank account remotely in top banking jurisdictions.

Feel free to jump ahead to the areas most relevant to you by using the table of contents below.

Table of Contents

  1. Dividend Bank Accounts 101
  2. How Do I Open a Dividend Bank Account?
  3. Ready to Explore Your Options?

Dividend Bank Accounts 101

First a quick introduction to dividend bank accounts:

Dividend bank accounts pay interest on the funds deposited in the account. Dividends can accumulate (and be paid) on a monthly basis or an annual basis, and funds can be available for withdrawal at any time or after a fixed term (not available until after a set period of time).

Essentially, dividend bank accounts are interest bearing accounts offered by banks in certain jurisdictions. In fact, there are only two differences between a dividend bank account and an interest bearing account, which are the name of the account and the institution offering the account.

In terms of the institution, dividend bank accounts are typically offered by credit unions whereas banks typically offer interest bearing accounts. That said, the accounts operate the same and prospective customers should consider the same factors when choosing which bank that is right for them.

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How Do I Open a Dividend Bank Account?

If you are looking to open a dividend bank account, there’s a strong chance that you are looking to bank with a credit union in your local market. If that’s the case, you should find the credit union that best suits your needs and offers terms that you are comfortable with.

On the other hand, if you are looking to secure the highest interest rates possible on your accounts, you may want to consider banking elsewhere.

For example, offshore banking hubs like Jersey, Guernsey, Panama, and Singapore often offer much higher interest rates than banks in the US, UK, Canada, or Australia.

Likewise, jurisdictions like Armenia, Georgia, and Mongolia all attract foreign depositors with significantly higher interest rates on depositors than domestic banks.

That said, there are additional factors that you need to consider when banking in foreign jurisdictions, not the least of which is whether the banks you’re considering are suitable options for your needs.

With this in mind, here is a look at a few of the important factors foreigners should consider before opening accounts abroad.

Important Factors to Consider Before Opening Abroad

  • Financial health of the bank
  • Stability of the banking system
  • Currency volatility against your home currency
  • Economic stability of the country
  • Political stability of the country
  • And more…

Account Specific Considerations Before Opening

  • Remote opening
  • Available interest rates
  • Currency the account is denominated in
  • Fixed term where your funds are locked
  • And more…

Ready to Explore Your Options?

If you would like assistance navigating your banking options at home or abroad, we can help.

You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.

But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.

Of course, if you have any questions, please contact us directly.

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