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.

In recent years, many of the best returns have come from banks in foreign markets offering electronic onboarding, which means almost anyone can access them from abroad.

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 access your foreign deposit once your accounts are opened and returns secured.

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 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 so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.

GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…

+ Direct support from a team of banking experts

+ Direct introductions to your desired banks

+ Answers to your most pressing questions and challenges

+ Expert insights on which banks to choose & why

+ Plus FULL access to our entire suite of account opening tools and intelligence!

And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.

You can learn more on the products page from the main menu above.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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