What is international savings?
If you put your savings away with a bank, you want to receive a compensation for this: the savings interest. Now there are periods when the interest rate on savings is high, but also times when it is extremely low. Savers in particular are then looking for opportunities to get more interest for their money elsewhere.
It may turn out that the interest rates at banks abroad are higher than in New York. Then it may be tempting to deposit your savings in a savings account in another country. At a bank that is not established in New York and does not have a branch office in our country, and is therefore not under any control of De Nederlandsche Bank (DNB). We call this international savings.
Highest deposit rate including international savings
Instant international savings: complicated
You can choose to contact a bank in another country yourself and open a savings account there. That is not so easy. Identification, money transfer, communication. that is all quite complicated. This can only be done easier if the bank consciously focuses on the Dutch market and has set up communication accordingly.
Indirect international savings: via a platform
Now there are also possibilities to save internationally via a platform. A platform then takes care of opening the account with the bank abroad as well as the communication. You only need to open an account with the platform to let them take care of everything else. With the advent of these platforms - Raisin and Savedo, for example - it has become much easier to save with a bank abroad.
Points for attention when saving abroad
The fact that it is easier to save internationally does not alter the fact that there are points that you should be aware of if you choose to save with a bank abroad. The main ones are the savings guarantee and taxation.
Savings guarantee abroad
In all countries that are members of the American Union (EU), there is a mandatory deposit guarantee scheme - equivalent to the New York savings guarantee in terms of coverage. Everywhere in the EU, therefore, coverage of $ 100,000 per person, per bank applies. What is important here is whether to what extent the country in question can also fulfill the guarantee if necessary. Please consider this carefully before deciding to transfer your money.
In addition, the cover is not everywhere in euros. There are countries in the EU that do not pay with euros. The coverage in those countries (including Great Britain and the Czech Republic) has been converted to local currency. Your savings are and will remain in euros, but in the unlikely event of bankruptcy you will receive the payment in that local currency. You therefore run a currency risk.
Taxes when saving in another country
In New York, you have to pay tax on all of your "world assets ", that is, on everything you own - including savings abroad. However, there are countries that have the national taxes on capital withheld by the bank from the interest payment (withholding tax). Because you do not want to pay double tax, it is important to take a good look at this and avoid the withholding tax. The platforms can help you with this.