Opening of savings and investment accounts in ukrainian banks

A savings bank account is an account you may use not only to store funds and receive interest, but also periodically withdraw portions of the deposit.

The benefits of a savings account are:

• higher interest rates, than of an ordinary deposit;
• the account is valid for an indefinite period;
• the capitalizing of interest;

Disadvantages of a savings account:

• the requirement of a large deposit amount to receive an increased interest;
• control of the irreducible balance;
• the risk of introduction of a variable interest rate on the account;
• annoying additional banking rules and services;

Before opening an account, VigoLex lawyers shall assist to rank the banks, provide data on interests, fees, carry out an analysis of financial risks and the conditions of the chosen bank.

Nuances of opening a savings account in Ukraine

The primary rules for opening savings accounts remain unchanged, but the conditions of bank financial monitoring of customer accounts have become significantly more stringent. For example, banks have the right to:

• close accounts in case of expiry of submitting term for documents requested by the supervisory authority;
• remote opening of the account, but with undertaking of NBU financial monitoring rules;
• change the conditions for contracts between the bank and the client, signatures with a personal digital signature;
• close accounts if there have been no transitions for three years or in case of absence of balance .

Legislation is constantly changing and it is almost impossible for a non-professional to track novelties, as well as to understand the interpretation of laws and executive orders.

A foreigner’s investment account is a non-resident’s current account in foreign currency and/or Ukrainian hryvnia for carrying out investment activities in Ukraine. This is a legitimate opportunity for a non-resident investor to control, multiply or return investments and incomes received from activities in Ukraine.