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Author Topic: Banking in Russia as non-resident  (Read 1614 times)

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Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #30 on: November 16, 2016, 09:36:19 AM »
Crazy world isn't it - my colleague at work says he has a mortgage at a negative interest rate, 0.05% or so, not much but still....
If only that were true, I would be highly surprised to see anyone get that rate unless they were connected  :-X

Online Ste

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Re: Banking in Russia as non-resident
« Reply #31 on: November 16, 2016, 09:42:39 AM »
Crazy world isn't it - my colleague at work says he has a mortgage at a negative interest rate, 0.05% or so, not much but still....
If only that were true, I would be highly surprised to see anyone get that rate unless they were connected  :-X

My Danske Bank here is negative interest i.e. none!!
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Online Ste

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Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #33 on: November 16, 2016, 10:22:05 AM »
Crazy world isn't it - my colleague at work says he has a mortgage at a negative interest rate, 0.05% or so, not much but still....
If only that were true, I would be highly surprised to see anyone get that rate unless they were connected  :-X

My Danske Bank here is negative interest i.e. none!!
Wow I read the link and wow, good for thlse with a mortgage in Denmark!

Online andrewfi

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Re: Banking in Russia as non-resident
« Reply #34 on: November 16, 2016, 11:53:12 AM »
If you pay bank charges that exceed any notional interest then the effectively you have a negative interest rate. Interest represents the profit that the bank makes on holding your money. If there is no profit from holding your money then they must charge you to hold the cash.

I'd bet that your mate with the negative interest mortgage is paying management or arrangement fees that represent the profit the bank would need to make on the deal.

Here's an example: CLICK HERE!
Quote
His interest rate first dipped below zero last summer. Because of various mortgage fees, he still pays a modest amount each quarter in addition to his principal payment.

This can look like a good deal if the bank normally works on a margin of, say, 1% between the rate they borrow at and the rate they lend at. All that must be replaced to the bank is the amount that the 1% would represent, a much smaller figure than the total interest charge would be in a 'normal' economy. The 'modest fees' referred to in the article might actually be quite profitable for the lender. ;)

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Online Ste

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Re: Banking in Russia as non-resident
« Reply #35 on: November 16, 2016, 12:14:41 PM »
I've just twigged what you are doing with the CLICK HERE's!!
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Online andrewfi

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Re: Banking in Russia as non-resident
« Reply #36 on: November 16, 2016, 12:33:17 PM »
I've just twigged what you are doing with the CLICK HERE's!!

Yeah, providing helpful links to topics under discussion!  tiphat

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Offline Danchik

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Re: Banking in Russia as non-resident
« Reply #37 on: November 16, 2016, 12:33:42 PM »
I finally spoke to VTB Bank of Moscow and they said that I am required to be a resident, I can't open an account as a tourist even if I have interests in Russia. Only work around (for them) was if I bought a flat which I didn't fancy although there are nice places at good money, I wouldn't know where to start and what is a good investment area for long term growth in property values.

Raiffeisen said similar and I presume other Russian banks will too?

This leads me to wonder if maybe a RUB account in the baltics would be a good move, I remember reading Estonia and Latvia offer such accounts with the added bonus of being in the EU. I guess at the same time I could combine my Euro accounts into one as well which would keep paperwork down!
Yes, pretty much have to be regisered to get any perk. You'll need to translate your documents with most, if not all banks.

Correct me if I'm wrong, but weren't you planning to come to Russia and spend a good amount of time here?
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Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #38 on: November 16, 2016, 01:27:58 PM »
I finally spoke to VTB Bank of Moscow and they said that I am required to be a resident, I can't open an account as a tourist even if I have interests in Russia. Only work around (for them) was if I bought a flat which I didn't fancy although there are nice places at good money, I wouldn't know where to start and what is a good investment area for long term growth in property values.

Raiffeisen said similar and I presume other Russian banks will too?

This leads me to wonder if maybe a RUB account in the baltics would be a good move, I remember reading Estonia and Latvia offer such accounts with the added bonus of being in the EU. I guess at the same time I could combine my Euro accounts into one as well which would keep paperwork down!
Yes, pretty much have to be regisered to get any perk. You'll need to translate your documents with most, if not all banks.

Correct me if I'm wrong, but weren't you planning to come to Russia and spend a good amount of time here?
I am learning that now although getting a pay as you go sim was easy (Alena bought it  :king: ). Notarised copies aren't an issue, I believe that is the easiest thing to do!

I was planning on either Russia or Ukraine depending on viability of a business but we decided it wasn't viable in either country and we would need to do it a different way. I did end up meeting a nice girl who I have spent a lot of time with (inbetween her work) which is nice but when I am paying for things and paying 3% plus £1 per transaction on top of FX rate, it is adding up although still cheaper than the UK in general.

Online andrewfi

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Re: Banking in Russia as non-resident
« Reply #39 on: November 16, 2016, 01:36:04 PM »
You DO know that you can get credit cards that have no surcharges for foreign use?
The rate you will get on the transactions is usually pretty good compared to the retail exchange rate for cash as well.

How do I know, I have both a debit and credit card that work on that basis.

But yes, you will still pay a fee for ATM withdrawals - the wise man will head off to a casino to get his cash. ;)


"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Offline Gipsy

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Re: Banking in Russia as non-resident
« Reply #40 on: November 17, 2016, 12:59:13 AM »
You DO know that you can get credit cards that have no surcharges for foreign use?
The rate you will get on the transactions is usually pretty good compared to the retail exchange rate for cash as well.

How do I know, I have both a debit and credit card that work on that basis.

But yes, you will still pay a fee for ATM withdrawals - the wise man will head off to a casino to get his cash. ;)

Only illegal ones in the big pelmeni...  ;D
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Online andrewfi

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Re: Banking in Russia as non-resident
« Reply #41 on: November 17, 2016, 01:13:43 AM »
I forgot, gambling is pretty much illegal over there now. Scrub that suggestion for Russia. ;)

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #42 on: November 17, 2016, 03:37:17 AM »
You DO know that you can get credit cards that have no surcharges for foreign use?
The rate you will get on the transactions is usually pretty good compared to the retail exchange rate for cash as well.

How do I know, I have both a debit and credit card that work on that basis.

But yes, you will still pay a fee for ATM withdrawals - the wise man will head off to a casino to get his cash. ;)
I know that I can get credit cards that do the job however I don't want to apply for another credit product at this time or rather my credit profile has taken a hit since I put the new car on credit so it may not be the best choice at the moment.

Online andrewfi

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Re: Banking in Russia as non-resident
« Reply #43 on: November 17, 2016, 03:57:32 AM »
Seems rather shortsighted reasoning. There's you this rich bloke who is unhappy about wasting money and you'll continue wasting money over something short term and and yet saves money in the long term?

Particularly if you get a debit card which is not a credit instrument anyway.

If a pauper like me can sort this stuff out and have a decent credit rating then you can too. Talk to your bank, I am sure that in your situation you get their personal banking services.

When you talk with your personal banker she will probably tell you that very often applying for a credit card does not even involve a credit check. Keeping your overall usage ratio down by spreading your balances will increase your credit score. Probably you don't even need to carry balances anyway.

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Offline Manny

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Re: Banking in Russia as non-resident
« Reply #44 on: November 17, 2016, 11:32:57 AM »
I remember reading Estonia and Latvia offer such accounts with the added bonus of being in the EU. I guess at the same time I could combine my Euro accounts into one as well which would keep paperwork down!

Latvia has a chequered bank history. Swedbank in Estonia is a proper one: https://www.swedbank.ee/about/about/branches/official - people speak both English and Russian if you call.