Aerial view of the old Belize City Swing Bridge.
By Dillon Medina
One of the fastest growing ways to invest in Belize is to open an international bank account. International accounts are available to all non-residents of Belize, therefore if you are a foreigner living in Belize, a Belizean who has migrated to another country or an investor who wants to diversify their portfolio and hold funds in multiple countries, you can find something that will suit your needs in Belize.
There are five international banks located in Belize. Four of them are centralized in Belize City namely, Atlantic International Bank Limited, Belize Bank International Limited, Heritage International Bank Limited and Choice Bank Limited. Caye International Bank Limited is located on the island town of San Pedro. Atlantic International Bank Limited has branches in San Pedro and Placencia while Belize Bank International Ltd and Heritage International Bank Ltd. have a branch in San Pedro, making it more accessible to highly visited locations in the country.
Each bank has basically the same requirements and conditions to open a bank account, however each bank has their own policies, so the requirements may vary a little from one bank to another bank. Similarly, bank charges are also very much alike.
Most banks charge a monthly fee to maintain your account(s), fees for transfers such as incoming and outgoing wires. However there are banks that have less charges than others. For instance, some banks charge to hold a savings account while others do not. International Bank Services and bank charges can be found on the bank’s website.
Most of the international banks in Belize offer several types of accounts including the standard savings, demand deposit accounts and term deposits for both personal and corporate customers. Some banks offer additional types of saving accounts that yield a greater return on investments. The standard minimum balance for opening a demand deposit account is US$1,000.00. This type of account is primarily used as an operational account where many transactions can be done.
A savings account has several opening and minimum balance requirements, offered to clients, in order to yield higher interest. The opening balance requirements range from about US$500.00 to as much as US$25,000.00. Interest rates vary with each bank where you can earn anywhere from 0.5% to 3% depending on the type of account and balance.
Choice Bank Limited does not pay interest on their savings account while other banks offer higher interest rates on higher account balances as an incentive to encourage more savings for longer periods of time. Accounts yielding higher interests often start with higher minimum balances, usually starting at US$ 25,000.00. Term deposits work on similar principles as the savings account with higher interest rates up 5%. However, since these funds cannot be touched until the end of the term, these accounts may carry penalties if you wish to cancel them before the term has ended.
Opening an International Bank Account
One of the great benefits of opening an international account in Belize is the fact that you never have to step foot on Belizean soil to open and operate your account. All of the banks allow communication and interaction to be done via email or fax.
The first step to opening your account is to research the banks fully and choose the one that best suits your individual needs. Although majority of the services, fees and products are the same, there are differences which could make one more attractive than the other.
All banks have application forms for opening an account available on their website. The normal procedure to open an account is to print out the forms, complete them and send them in with the additional documentations required. Additional documents include a notarized copy or copies of signatories’ passport, two letters of reference and a utility bill or proof of address.
If you are opening an account for a company, you will be required to provide a full set of company documents, including articles and memorandum of association, share register, and a company resolution to open the account. To facilitate the process some banks will allow you to apply for the account with copies of all these documents, rather than originals. However, you will still be required to submit the original application forms and notarized documents, after the account is approved. This process allows potential clients to correct any errors on the forms and documents before sending the original documents via mail.
International Bank Services
There are other services that you can apply for while opening your account such as online banking. Online Banking is one of the primary tools offered to clients to make banking easier and more accessible. Online Banking has many benefits to both clients and the bank thus it is offered free of cost. This service allows you to check your account balance or request a wire transfer. It also allows you to pay your credit card from your bank account.
Another essential service that the banks offer is credit card services. Some banks offer both Visa and MasterCard but a few offer only MasterCard. Debit Cards are not common therefore it is customary for clients to own a prepaid card linked to their bank accounts. These cards allow you to make withdrawals and purchases using your own funds.
International Banks don’t normally offer check-books to clients; however you can request a bank draft if there is a need to send funds from your account to someone else. International Banking is offered only to non-residents of Belize, therefore only a few of them offer cash withdrawals at the bank itself. However, with a prepaid card or credit card from your international bank, you can do a withdrawal at almost all ATMs in the country that displays the Visa or MasterCard logo. Most of the banks have a working relationship with the local banks, therefore you can perform normal teller transactions at their offices and branches countrywide, giving you more access to your account.
As you can see the International Banks in Belize offer the same products and services, with processes very similar to the banks you work with at your home country. However, the main benefits of having an international Bank account in Belize are as follows:
1. Easily accessible from the US
2. Your bankers speak English
3. Interest is tax free.
Finally, do your research on all the banks, contact them and choose the one that is right for you which will meet all your needs.
Dillon Medina
Dillon Medina was born and raised in Belize and works at Atlantic International Bank. He attended the University of Belize and has been working in the banking industry since graduating in 2008. For more information on him, banking, investments and Belize, follow him on twitter @DillonCM. You can write Dillon at: Dillon Medina