Bank/EMI with 4%+ yield on savings?

[Martin Everson]

10-20k

So your going to all this effort for 800 euros approximately over the course of a year. Or approximately 66 euros a month on average?

I would say don't waste your time too much on this.

 

[Radko]

Dude, this is not about a treaty. The US has no withholding tax on interest paid on bank deposits anymore. No need to reduce anything under a treaty if the non-treaty rate is 0%.
It's because they want to attract foreign deposits.
The only question if this counts as a bank deposit or dividend.

Read it here directly from the IRS:
https://www.irs.gov/individuals/int...rest-income-for-nonresident-alien-individuals

Ok so interest generated from a bank deposit in a US bank is now subject to 0% withholding, nice! I hope they do the same with dividends, lol.

But will the bank report foreign customers under FATCA if they generate interest in the U.S.? If so, they will have to pay taxes back home.

So your going to all this effort for 800 euros approximately over the course of a year. Or approximately 66 euros a month on average?

I would say don't waste your time too much on this.

66€ a month will help to pay for??? Not much given the crazy inflation running across Europe, but every little helps (Buffett has made billions compounding interest and dividends, lol.)

 

[JustAnotherNomad]

Ok so interest generated from a bank deposit in a US bank is now subject to 0% withholding, nice!

Correct. And if taxes are withheld by mistake, you can get a refund from the IRS.

But will the bank report foreign customers under FATCA if they generate interest in the U.S.? If so, they will have to pay taxes back home.

Whether you have to pay tax or not somewhere else has nothing to do with whether there is reporting or not.

 

[Radko]

Correct. And if taxes are withheld by mistake, you can get a refund from the IRS.



Whether you have to pay tax or not somewhere else has nothing to do with whether there is reporting or not.

Well, if there is reporting under FATCA then you better pay before they come for you bad boy....

 

[joffreylol]

I'm not sure if those yields at IBKR are considered as interest in a bank's savings account (which is 0), I think it's not because it's a broker account and subject to 30%. Someone who parks more than $10k with IBKR can check for us although you don't get the full yield until $100k parked.

 

[JustAnotherNomad]

No need to test, just send an email to IBKR and ask...

 

[jafo]

No need to test, just send an email to IBKR and ask...

Do you have their email account? Would you share?

 

[JustAnotherNomad]

Seriously?
https://www.interactivebrokers.com/en/support/customer-service.php?p=email

 

[jafo]

Seriously?
https://www.interactivebrokers.com/en/support/customer-service.php?p=email

I have this too. I thought you had a direct email account e.g. [email protected].
I have access to their online "messaging" system too, but it took them +60 days to answer that and they answered it by asking me another question
Horrible customer service

 

[JustAnotherNomad]

Yeah, they aren't exactly known for great customer service...

 

[Radko]

I have this too. I thought you had a direct email account e.g. [email protected].
I have access to their online "messaging" system too, but it took them +60 days to answer that and they answered it by asking me another question
Horrible customer service

IBKR customer service is terrible, that's one of the reasons why I left.

 

[jafo]

IBKR customer service is terrible, that's one of the reasons why I left.

Do you recommend places with better customer service?

 

[Radko]

Do you recommend places with better customer service?

Charles Schwab is excellent, they welcome foreigners as well, easy to open a brokerage account. Also SIPC protection.

 

[meze99]

Unfortunately, Schwab can open an account only for residents of the following countries: United States, Argentina, Australia, Bahamas, Belgium, Bermuda, Brazil, Cayman Islands, Chile, Columbia, Costa Rica, Ecuador, Germany, Guam, Guatemala, Hong Kong, India, Israel, Malaysia, Mexico, Panama, Peru, Philippines, Puerto Rico, Qatar, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, Uruguay, British Virgin Islands, U.S. Virgin Islands, and probably some other EU countries and Monaco.