Types of Bank Account in Panama
Types of Bank Account in Panama
Types of Bank Account in Panama are usually the same types as you can find anywhere around the world.
Although, be Panamanian regulation there are defined as follow.
Savings accounts
- Local Name: Cuenta de Ahorros
- Interest: Do earn
- Maintenace Cost: No
- Persona Type: Individual/Corporations
Type of Bank Account in Panama whose demand deposits availability can be immediate.
Savings accounts are a type of account in the Panamanian banking sector that generate interest in favor of the account owner.
Interest rates
Interest Rates vary depending on the amount deposited.
The interest rates offered for savings accounts may vary without notice and will depend on the LIBOR quote.
These interest rates will be subject to bank specific requirements
Maintenance
Savings accounts generally have no maintenance costs.
Frequent questions
Can the bank charge a fee for little or no account movement?
No, the current banking regulation prohibits banks from collecting these types of charges for savings accounts.
Can the bank close my bank account due to inactivity?
If 5 years of inactivity have passed, the bank can close your savings account.
Checking Accounts
- Local Name: Cuenta Corriente
- Interest: Don't earn
- Maintenace Cost: Yes
- Persona Type: Individual/Corporations
Type of Bank Account in Panama whose demand deposits availability can be immediate and it is handled by checks.
Checking accounts are a type of accounts in which you can issue checks, these accounts generally require opening minimum amount and a monthly average threshold of funds.
The checkbook
The checkbook generally has a low cost.
You can customize the checks regardless of whether you are a company or an individual as long as you comply with Panamanian banking regulations and the checkbook is printed in a bank’ authorized printing house.
Account with International Checkbook
This type of bank account in Panama is recommended for those who need an Offshore Bank Account with international acceptance. Checks issued from this type of account will be accepted around the world.
Account with Local Checkbook
This type of bank account in Panama is mostly used by those who need an account to make payments to people or businesses in Panama.
These checks will only be valid to be deposited and accepted locally in Panama.
Interest rates
This type of account usually does not generate interest.
Maintenance
In general, maintenance costs are given by the number of checks that are issued per monthly cycle.
The unit cost per check processed ranges between 5 and 15 cents.
Bounce checks or in any way checks that are returned for any reason carry administrative costs.
Likewise, failing to meet minimum threshold funds in the account carries administrative charges.
When you have a good relationship with the bank, it is possible to process overdraft lines in the checking account.
Frequent questions
Can the bank require a minimum deposit?
Yes, the bank can demand a minimum deposit.
Term Deposit
- Local Name: Plazo Fijo
- Interest: Do earn
- Maintenace Cost: No
- Persona Type: Individual/Corporations
Type of bank account in Panama where the deposit of money is for an amount exceeding 10,000 USD with a term not less than 30 days.
The Term Deposit is a type of account that generally has short-term maturities that range from one month (law minimum) to a few years whose minimum deposit amount is 10,000 USD.
Interest rates
Interest rates generally vary depending on the agreed term and the amount deposited.
Some banks offer up to 8% annual interest paid at maturity.
When opening a Term Deposit, the investor must understand that he can withdraw his funds only after the end of the agreed term.
Maintenance
In general, fixed terms do not have maintenance costs.
Frequent questions
Can I increase or decrease the amounts and the term?
The amount of the fixed term cannot be reduced. However, an increase may be established before its expiration date, with prior agreement between the parties, for a term equal to or greater than one year.
Can I withdraw the funds before the due date?
No, the agreed term must always be honored between the parties.
Payroll Account
- Local Name: Cuenta de Planilla
- Interest: Don't earn
- Maintenace Cost: Yes
- Persona Type: Corporations
The payroll account is a special type of bank account in Panama used for the payment of employees that is automatically linked to a payroll system of your choice.
Interest rates
This type of account usually does not generate interest.
Maintenance
This type of account generates a monthly maintenance cost that depends on the payroll size, the volume of transactions among other factors determined by each bank.
Investment Account
-
Local Name: Cuenta de Inversion,
Banca Privada, Fondos Mutuos - Interest: Do earn
- Maintenace Cost: Yes
- Persona Type: Individual Corporations
This type of bank account in Panama receives different names and there are different types, such as capital banking, investment banking, funds, mutual funds, and others.
Basically, they are accounts whose funds are invested in different instruments in the stock market both Panamanian and abroad.
Interest rates
The yield generated varies according to the deposit amount and the risk of the investment portfolio.
This investment account generally receives higher returns than a savings account and a fixed account, but being an investment in the stock market it is volatile with variable dividends.
International Investment Account
This account is recommended for those who want to obtain returns on instruments traded outside Panama.
Usually, returns came from instruments traded at the New York Stock Exchange.
Local Investment Account
This account is mostly used by those who wish to obtain returns on traded instruments in the Panama Stock Exchange.
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