The current low savings rates and the recent Bitcoin hype are in sharp contrast to each other. Yet there is also a middle ground: savings deposits abroad that often offer higher interest rates than in the Netherlands, such as the Good Finance Savings Bank. For many people, however, saving abroad evokes a gut feeling: is it worth it? We give you the do’s & don’ts for saving abroad.
Do: study the risks well in advance
More return is usually accompanied by more risk. Be well prepared and delve into the risks involved. It is important to know whether your savings are covered by the deposit guarantee scheme. Do you save in another country in the European Union? Then your money is covered up to a maximum of € 100,000 per bank of the country in question. Withholding tax is also sometimes levied in other EU member states. As a taxpayer in the Netherlands, you can in most cases reduce this to 0%. So check this in advance.
Do: consult different sources
It helps to rely on multiple and different sources . This includes financial newspapers, TV broadcasts, friends and acquaintances, blogs or even YouTube videos. This way you not only learn facts, but also experiences that can offer you different perspectives.
Don’t: don’t be put off too quickly
Banks must comply with the laws in the country where they are located, and may differ from the laws in the Netherlands. As a customer you can also be subject to local laws. In Portugal, for example, you have to provide proof of address because of combating money laundering. Usually it is simply about submitting documents other than what you are used to. So don’t be put off too quickly if the procedure is slightly different.
Don’t: don’t get started yourself
Unless you have the necessary knowledge or experience, it may be wise not to act on your own. After all, you have to deal with a different language and regulations. Meanwhile, there are intermediaries such as Good Finance who facilitate saving abroad. Through them it is possible to open fully online deposits in other EU countries. An additional advantage is that both documents and customer service are offered in Dutch.
Saving abroad requires a little more effort than opening an account in the Netherlands. On the other hand, there is a significantly higher interest rate. In short, check for yourself whether this is worthwhile for you.s