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Author Topic: Banking in Russia as non-resident  (Read 7717 times)

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Offline Ste

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Re: Banking in Russia as non-resident
« Reply #25 on: November 16, 2016, 07:42:20 AM »
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!

why not purchase an inexpensive flat?  it could easily double or triple in value once sanctions are lifted.
I have looked at a couple while I was there and since online but I don't know the right areas to look ??? But there are some seriously nice places for £150k (1 bed, open plan, modern), makes me wonder why Alena lives in a rundown block  :ROFL:

Maybe it's the 20% mortgage rate over a two-year only term? That's all my better half's brother back in Russia could get, was 5 years or so ago though....

If it's a cash purchase it's different but I'd think twice about dumping £150k in a country ranked 119th in the corruption league, Denmark number one, the least corrupt BTW!

The mortgage rate during the past 8-9 years has not been that high, so there's something wrong here..
Most probably the person could not get a "Normal rated" mortgage for whatever reason, and was left with the alternative of taking a 20% personal loan...OR a high interest short term loan from some in-regulated source..

Maybe, more likely male to female back to male translation! She's very clever, doing her third degree now but can be incredibly thick as well, like swearing blind there are nine months in a year once. (she meant academic year she said but I know that was a ploy to deflect her brainfart...)

I'll have to ask now and I'll get the 'oh, I can't remember and I never said that shit...'

 
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Offline Gipsy

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Re: Banking in Russia as non-resident
« Reply #26 on: November 16, 2016, 07:58:36 AM »
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!

I have just this moment come off the phone, after speaking with Both Sberbank, and Raiffeisen Bank, re this question.
They have both told me that one has to be in Ru, on a valid visa, and registered at a residential address in order to open an account with them, with Raiffeisen, one can do this on the phone, and with Sberbank, one must visit one of their larger branches in person, where the opening of an account will be considered by the HQ, they also state that unless there are serious issues, account will be opened, takes 2-4 days for said response from the bank...
One may open a savings account immediately without the wait, which after a period of time allows the person to also open a current acc..
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Offline Gipsy

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Re: Banking in Russia as non-resident
« Reply #27 on: November 16, 2016, 08:00:25 AM »
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!

why not purchase an inexpensive flat?  it could easily double or triple in value once sanctions are lifted.
I have looked at a couple while I was there and since online but I don't know the right areas to look ??? But there are some seriously nice places for £150k (1 bed, open plan, modern), makes me wonder why Alena lives in a rundown block  :ROFL:

Maybe it's the 20% mortgage rate over a two-year only term? That's all my better half's brother back in Russia could get, was 5 years or so ago though....

If it's a cash purchase it's different but I'd think twice about dumping £150k in a country ranked 119th in the corruption league, Denmark number one, the least corrupt BTW!

The mortgage rate during the past 8-9 years has not been that high, so there's something wrong here..
Most probably the person could not get a "Normal rated" mortgage for whatever reason, and was left with the alternative of taking a 20% personal loan...OR a high interest short term loan from some in-regulated source..

Maybe, more likely male to female back to male translation! She's very clever, doing her third degree now but can be incredibly thick as well, like swearing blind there are nine months in a year once. (she meant academic year she said but I know that was a ploy to deflect her brainfart...)

I'll have to ask now and I'll get the 'oh, I can't remember and I never said that shit...'

Best just to nod your head at anything women say Ste... works wonders for a peaceful life... ;D
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Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #28 on: November 16, 2016, 08:48:37 AM »
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!

why not purchase an inexpensive flat?  it could easily double or triple in value once sanctions are lifted.
I have looked at a couple while I was there and since online but I don't know the right areas to look ??? But there are some seriously nice places for £150k (1 bed, open plan, modern), makes me wonder why Alena lives in a rundown block  :ROFL:

She may be unable to purchase anything more expensive, or may not have the required income for a large mortgage..
She probably can't and to her credit she has done a wonderful job of the flat and how homely it feels, I am just not a fan of the outside but obviously there are differences in pay and what one can get for their money.

Ste, 20% is double what you can get today in Russia, when they were trying to sell me on the flat option they were offering 10-11% with 20% down. 20% seems like extortion to me.

Offline Ste

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Re: Banking in Russia as non-resident
« Reply #29 on: November 16, 2016, 09:01:23 AM »
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!

why not purchase an inexpensive flat?  it could easily double or triple in value once sanctions are lifted.
I have looked at a couple while I was there and since online but I don't know the right areas to look ??? But there are some seriously nice places for £150k (1 bed, open plan, modern), makes me wonder why Alena lives in a rundown block  :ROFL:

She may be unable to purchase anything more expensive, or may not have the required income for a large mortgage..
She probably can't and to her credit she has done a wonderful job of the flat and how homely it feels, I am just not a fan of the outside but obviously there are differences in pay and what one can get for their money.

Ste, 20% is double what you can get today in Russia, when they were trying to sell me on the flat option they were offering 10-11% with 20% down. 20% seems like extortion to me.

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....
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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

Offline 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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Offline 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. ;)
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Offline 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. ;)

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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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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. ;)
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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.

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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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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.
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Offline Gipsy

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Re: Banking in Russia as non-resident
« Reply #45 on: November 17, 2016, 11:39:04 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.

I thought that there was one of them types of top up cards that was also free to use in Russia, but damned if I can find it now......
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Offline SuperPanda

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Re: Banking in Russia as non-resident
« Reply #46 on: November 19, 2016, 05:33:10 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.
Two Latvian banks I spoke to seemed to have a good handle on things from opening to ruble, euro and gbp accounts (ABLV & BIB), is there a particular reason I should avoid?
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.
Credit card applications usually involve a search, firat a soft search and secondly a hard search. This only changes if you bank with the bank and I don't bank with Halifax or Post Office. I am also more at risk of currency flucuations using credit cards whereas an account and one transfer, it is locked in.

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Re: Banking in Russia as non-resident
« Reply #47 on: November 19, 2016, 03:53:50 PM »
Snoras I think it was called. Lost credibility about the same time as Iceland with Landsbanki Guernsey.

Maybe it's better now there, but Swedbank held firm through the bad times.
Read a trip report from North Korea >>here<< - Read a trip report from South Korea, China and Hong Kong >>here<<

Look what the American media makes some people believe:
Putin often threatens to strike US with nuclear weapons.