Where are the most secure countries to have a bank account
If you’re new to the world of offshore banking, you might be worried about bank safety. After all, years of propaganda have led many to believe that their money will simply vanish if they move it abroad. (Funny how the rest of the world still has access to their money)
You might not understand that almost every developed nation has some form of deposit insurance for banking clients, for instance. Or, you might be amazed to learn that the United States was ranked as only the fortieth most stable banking system in the summit of the fiscal crisis.
While we do talk about emerging offshore banking jurisdictions that provide higher interest rates and will play a bigger role in the near future, those seeking conservative banking choices will appreciate knowing the safest offshore banking countries.
Annually, Global Finance magazine publishes a report called the 50 Safest Banks. Weve examined the report and listed the offshore banking countries with the best number of the worlds safest banks. Other countries, like Norway, offer very safe banking, but dont have as many banks topping the worldwide list.
Needless to say, you must always do your own due diligence prior to opening an offshore bank accounts, but these countries have always scored high marks from those in the know. Here are the banks that you will want to focus on if stability and security are your top priorities for protecting your assets abroad.
Australia is among the safest banks.
Australia has some of the most powerful banks in the world and is a growing offshore banking destination for Asians.
Im not sure Id go that far, but I will say that many Asians especially wealthy Chinese are moving their money to Australia, in addition to Singapore. The fact that some of that much is hot is a potential concern, but Australias banks do stack up well in regards to offshore bank safety.
In actuality, Australia controls four positions in a row on the 50 Safest Banks poll, such as ANZ (#25), Commonwealth Bank of Australia (#26), Westpac (#28), and National Australia Bank (#29). ANZ has made an aggressive push into several Asian nations, opening branches anywhere from Vietnam to Cambodia and beyond. Opening a bank account in Australia is potential, but banks there do think a bit like US banks, in many cases assuming only a resident could open an account there. If you call one of these, dont be surprised if they ask when youre moving to Australia.
Canada has some of the safest offshore banks in the world.
While Canada might not be offshore for a few, it does have several of the worlds safest offshore banks.
For Americans, Canada might not be the first thing that springs to mind when considering offshore bankingnevertheless, it’s some of the worlds safest banks. Unfortunately, those banks are often off-limits to Americans, particularly the ones that pay more aggressive interest rates. While banks like TD Bank have made strong pushes to the US market and have been forced to spend an estimated $100 million to comply with FATCA, smaller Canadian banks have shut their doors to toxic American clients.
Its a shame because as sure as I am that Canada would roll over for the US government on a whim they do have some of the safest banks, such as aforementioned TD Bank (#19). Other contenders include Royal Bank of Canada, or RBC (#23).
8. South Korea
This highly-developed Asian nation tops many of our lists including the safest country in the world and appeared in our conversation on safe-haven monies.
South Korea is a nation largely still unexplored by most Westerners and not usually at the forefront of talks for nomads and offshore specialists. But this highly-developed Asian nation tops a number of our lists such as the safest country in the world and appeared in our conversation on safe-haven currencies. We also wrote recently about South Korean residency and citizenship in this guide, for those interested in this first world Asian passport that also offers visa-free access to the United States.
South Korea comes in often on the top 25 listwith Korea Development Bank (#15), Export-Import Bank of Korea (#16), and Industrial Bank of Korea (#20). Entrepreneurs and investors interested in banking in Asia in a culture that respects finance and business and offers the banking infrastructure needed to support that might want to look no further than these bank choices.
Sweden tops our list out of European nations with the safest banks, but that comes with a certain drawback since It’s also among the highest tax countries in the world.
The Swedish passport is still rated #1 of all on our Nomad Passport Index and in relation to banking the nation comes in at #12 with Svenska Handelsbanken and others on the list such as Nordea, Swedbank, and SEB, a few of which might be recognizable for those who have traveled in Scandinavia.
Sweden is a remarkable economic and social success but with that comes certain drawbacks: it is the nation with the maximum tax rate in the world, something that’s a concern for those based there but that can be avoided through living elsewhere. Concerning banking, Sweden may provide you the stability you are searching for in Northern Europe and with high English proficiency at each level of the procedure.
Singapore and the world’s most secure offshore banks.
Undeniably our favourite place to bank here in Nomad Capitalist, Singapore is home to a number of the worlds best offshore banks. According to Global Finance, the small Asian financial center is home to three of the worlds safest banks: DBS (#12), OCBC (#13), and UOB (#14). By a different account, OCBC is the worlds most powerful bank. Singapore has built the finest offshore banking center in the world by acknowledging one simple truth: funding goes where its treated best.
The fact that Singapore is the richest nation in the world by virtue of this understanding is what makes it, in our view, a wonderful place to bank. It’s getting more difficult to start an offshore account in Singapore, but its still possible. The fact that so many wealthy Asians are dismissing Switzerland in favor of Singapore is an outstanding indication that its the place to bank.
Is one of the Countries with the most secure offshore banks.
Even though France is not a desirable destination for nomads when it comes to its tax policy and business regulation, it does take a 5th place on out list due to the safe banking.
France isn’t a country we talk about often at Nomad Capitalist because of its lack of desirability from a tax-planning standpoint and generally bureaucratic, socialist-leaning ways.
Among the highest countries in the world for capital gains tax and income tax once crawling into 75%, the European Union founding power center still does come in at #9 and #21 on our list, with Caisse des ts et Consignations hitting that top-10 spot. You can also find out more about Frances potential desire for the end of the US dollar here.
Luxembourg is the second wealthiest country in the world.
This tiny European country is among the richest in the world and is usually related to stability and financial freedom. Though it ranks highly as a safe banking place, it does not function as an option for majority of American entrepreneurs.
Luxembourg, the little state of half a million listed among the top 5 richest nations in the world, unsurprisingly holds a great reputation in banking protection. Unfortunately, for US citizens, Luxembourg might not be an option, as few Luxembourg banks accept US persons as clients.
Most firms don’t conduct business with Americans. Luxembourg, however, tops our list of top 5 most precious passports for visa-free travel. The nation is usually related to stability and financial experience and thus is in good context here on this list.
Netherlands and the world’s most secure offshore banks.
The fantastic news for the Netherlands is that it is among the safest countries in which to bank. For us, its membership in the European Union is a bit troubling, particularly after what happened to Cyprus. But on paper, bank accounts in the Netherlands are protected by bank deposit insurance for up to 100,000 euros, the EU minimum. The nation is home to three of the top offshore banks, such as second-ranked Bank Nederlandse Gemeenten, sixth-ranked Nederlandse Waterschapsbank, and tenth rated Rabobank.
Switzerland is a worldwide standard for stability in currency for generations and rcher Kantonalbank comes in at #2 for safest banks.
Switzerland and banking are interchangeable for almost anyone around the world.
This highly-developed multilingual European nation has become the worldwide standard for stability in currency for generations and rcher Kantonalbank comes in at #2 for safest banks. Many have dreamed of having a Swiss bank accounts or taking advantage of the numerous financial benefits this non-EU nation and its own money the Swiss franc, despite it being pegged to the Euro. But while Switzerland was once the only tax haven, it is now increasingly inaccessible for offshore purposes.
As we’ve discussed, Switzerland is no longer the universal answer for bank secrecy. Islands like Seychelles and Mauritius continue to provide classic tax havens a run for their money. Interestingly enough, however, Switzerland has no limitations on the amount of money carried into or out of the nation. Additionally it is an old school alternative for offshore gold storage. It remains one of the least corrupt countries in the world.
Germany has the world’s safest offshore bank.
Americans might be surprised to learn they could open offshore accounts in Germany (albeit at reduced interest rates), which has the worlds safest bank according to Global Finance magazine.
Germany is home to KfW, the number one safest bank in the world according to Global Finance. In all, Germany is home to six of the worlds fifty safest banks, such as Landwirtschaftliche Rentenbank (#4), L-Bank (#5), NRW Bank (#8), and much more. As one of Europes stronger economies, Germans take their banking system seriously. And while bank secrecy in Germany isnt what it is in other German-speaking nations like Austria, as well as Switzerland, Germans are worried about things like capital controls.
It was the Germans that convinced the European Union to issue a high-value 500 euro banknote so that they could more easily keep hard money at home. Now that much of Europe is bankrupt, it appears German banks are more appealing. A few German banks accept foreigners, including Americans, but the accounts offered are typically general retail accounts with low interest rates and little solution for currency diversification.
Thoughts for US citizens:
Amazingly, US banks showed an improvement in the most recent Best Banks poll, with two retail banks making the list at #33, #40, and #43. Dont get too excited, though; the two Chinese banks that made the list both beat out all US contenders.
With laws like FATCA ready to be fully implemented, Americans in particular, should take caution to move some of their assets into safe offshore banks before its too late. If you’d like to see my list of 56 banks in 18 nations that aren’t only safe banks, but easy to open a bank account with, then you’ll need to check out our article on the worlds finest offshore banks.