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.
Quite often apparent good profitability hides additional banking restrictions on accounts, a decreased interest rates, implication of interests on a deposits not on a daily, but a monthly, etc.
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.
A huge portion of investments by foreign residents are considered “angel investments” to startups and IT businesses
An investment account enables to:
- invest money in the authorized capital of the company;
- acquire real estate;
- purchase securities and corporate rights;
- return investments and profit received from investments in Ukraine;
- receive income from investment activities.
When investing in startups or companies, the investor must conduct legal checks and monitoring of the risks associated with banks where an investment account is planned to be opened. As an example, some banks only allow non-cash transactions, and depositing or withdrawal of cash is not allowed, which will create difficulties when operating with “real” money.
VigoLex lawyers will analyze the attractiveness of opening and maintaining investment accounts of Ukrainian banks and will assist with:
- opening a current account for investment activities;
- obtaining an apostilled extract from the banking, trade, judicial registers or a certificate of incorporation of a legal entity overseas;
- issuing a power of attorney for managing an account, notarization of the signature card;
- registration with the tax authorities and obtaining of tax payer’s registration card.
On the other hand, when a resident of Ukraine wishes to invest abroad, difficulties of a completely different nature arise.