The Ideal Number Of Banking Relationships To Feel Safe And Secure

troubled soul

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Aug 23, 2020
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#1
As more and more Bank are being closed down...
What is your strategy with Bank account ?
How many bank account you have to feel secure ?
Share your advice for safe banking strategy........Without being too much complicated ....
The Ideal Number Of Banking Relationships To Feel Safe And Secure
 
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#3
I would not overdramatize the matter. Bank closure is something Americans and Eurooeams are not yet used to. In other parts of the world it is a daily occurance.

So, first of all look into the banks' balance sheet as deep as you can and then pick accordingly. Stop looking for the highest interest bearing account or just put the maximum insured account into that bank.

Instead of using bank accounts for high deposit amounts, buy money market mutual funds or ETF's since they are safer.

Going with the above it is sufficient to have two banks + (maybe) one broker.
 
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#4
one or two offshores max plus in every place you spend a lot of time in.
 
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#5
One personal account for daily banking, preferably on Premier/Priority/whatever they call it level. Generally keeping 1 year worth of expenses there + some nice credit cards (think Amex with miles program) on the top.

One simple EMI (Revolut or similar) for international travel and subscriptions. Also great if you need cards for family, like issuing virtual cards for kid's Playstation accounts. A good approach is to issue a new virtual card every year or two so when it dies you can review all the subscriptions and keep only the ones you need.

One or two private banks (Swiss, Lux, Austria etc) to keep your long-term liquid assets invested + have an access to flexible credit options if needed and all that without need to explain every transaction I make to the bank. Unfortunately AML checks are getting more and more intrusive every year, so now even private banks have to ask silly questions on transactions. Private manager can help a lot though as they know what AML is expecting to hear, so saves time and energy.
This is from EU point of view, I assume in the US it will be different.

Good stock broker account for trading/investing short-term. Any big name would do.

And I assume some lads might have crypto accounts, not my thing but if it makes you sleep better - go for it.
 
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#6
azb1 said:
What is your strategy with Bank account ?
Click to expand...

The more the better.

azb1 said:
How many bank account you have to feel secure ?
Click to expand...

Between banks, EMI's and brokers a little over 80 now .

azb1 said:
Share your advice for safe banking strategy........Without being too much complicated ....
Click to expand...

Try to only bank with banks/EMI's that publish their financials and have solid financials. Also as I said since 2018 on forum avoid any banks or EMI's with any Russian connection.


azb1 said:
The Ideal Number Of Banking Relationships To Feel Safe And Secure
Click to expand...

Between banks, EMI's and brokers. At least 10-15. I can't imagine anyone having less FI relationships than this.

You must at least have the following in your collection. Does anyone have less?

2 Brokers
4 EMI's
4 Banks
 
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#7
Martin Everson said:
Between banks, EMI's and brokers a little over 80 now .
Click to expand...
funny, that’s the same amount of icons I see in my folder “banks”
But at the end of the day I only actively use 2 banks, a handful of EMIs and IBKR. I never feel safe though.
The folder “crypto” is less crowded and makes me feel completely safe.
 
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#8
The more the better, as confirmed above by some of the veterans .

I personally feel safer to create over years new bank accounts and avoid transferring between all accounts, in case they start investigating one account they don't know your other bank account information.

This only counts if you don't have a single residence in for example EU, if that's the case it's little use to have so many bank accounts, since through CRS your information will be known and in some countries as tax resident you are legally obliged to inform them with your annual return about all your accounts.

Obtaining several residences and registering multiple bank accounts/EMI/broker accounts/crypto accounts in different countries with different residences feels most secure, and always have some cash aside.

Most banks require at least one transaction every year if you have a low balance, so if you have 60 accounts you better keep track of those that are not used
 
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#9
Mike Forman said:
I personally feel safer to create over years new bank accounts and avoid transferring between all accounts, in case they start investigating one account they don't know your other bank account information.
Click to expand...

Well put and exactly my strategy to stop myself from being un-banked in a flash and to buy myself some time. .


Agreed.


Mike Forman said:
Obtaining several residences and registering multiple bank accounts/EMI/broker accounts/crypto accounts in different countries with different residences feels most secure, and always have some cash aside.
Click to expand...

This is exactly the strategy to follow .

This is how anybody living in a developing country where arbitrary indiscriminate sanctions could take place at any moment should operate. Imagine you were a normal wealthy guy living in Belarus or even Syria before all the drama started.
 
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#10
Same here. I have about 3 old safe banks and 10 new Fintech banks and EMIs. I use the old banks to transfer parts of my salary to 2 other banks and then to1-2 more banks/EMIs, then to another EMIs. i.e. The pathway is always the same and each bank knows that I have two others, but no more.
 
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#12
azb1 said:
How many bank account you have to feel secure ?
Click to expand...

3 Banks + 2 EMIs

azb1 said:
Share your advice for safe banking strategy........Without being too much complicated ....
Click to expand...

Banks in different non-correlated jurisdictions so if something gets fucked in place A, B and C wont go down too.

azb1 said:
The Ideal Number Of Banking Relationships To Feel Safe And Secure
Click to expand...

Im cool as I'm now, works great!
 
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#13
I too was thinking of doing multiple residencies to have multiple bank accounts.
but in this post I was advised against it

https://www.offshorecorptalk.com/threads/multiple-residencies.40581/
 
#14
lonizzita said:
I too was thinking of doing multiple residencies to have multiple bank accounts.
but in this post I was advised against it

https://www.offshorecorptalk.com/threads/multiple-residencies.40581/
Click to expand...

That wasn't even advice, just a 3-word opinion of one person. There is no problem with multiple residencies, it can open many doors.

As usual, the devil is in the details... It's not the same to be a resident of Italy, Germany and Spain at the same time than to be a resident of UAE, Thailand and Cyprus.
 
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#15
scooterguy said:
As usual, the devil is in the details... It's not the same to be a resident of Italy, Germany and Spain at the same time than to be a resident of UAE, Thailand and Cyprus.
Click to expand...

Exactly. If your going for multiple residency choose wisely. You don't ever want 3 high tax European countries tax man chasing or auditing you at same time .
 
Reactions: Steve3000, jafo, Marie Manila and 1 other person
#16
Warren Buffet talked about “diworsification”.

A smart guy diversified as follows in crypto:

10% FTX
10% Anchor Protocol
10% Celsius
10% BlockFi
10% Vauld
10% AAX
10% stake in The Block
10% Voyager
10% Loaned to 3AC
10% Silicon Valley Bank
 
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#17
100%! This is the correct answer!
 
#18
Martin Everson said:
Exactly. If your going for multiple residency choose wisely. You don't ever want 3 high tax European countries tax man chasing or auditing you at same time .
Click to expand...
I will have to start thinking about this very carefully in about 4 years! I am officially resident in Italy and pay tax here. However, I also maintain an address in the UK via relatives, where I grew up. The UK is strict about tax residency but very easy-going about normal residency and as long as I contribute to the local taxes, there's no problem. I have no taxable assets or income there. As far as they're concerned, I'm just on a very long business trip or holiday.
The problem is that I have two private pensions in the UK that will mature in about 3 years. They have only my UK address and don't know that I'm now working abroad. So I guess that it will all be reported via CRS and I'll have to start messing about with double taxation laws etc. A real pain!
 
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