Bank Account Blocked in Malta

[superban]

That's what he claim, so why do you speak about "hot money" here,


If this is money that can be backed up with a source of funds evidence you should be fine to send them to TW for the beginning and find another EMI or two to spread the risk.

I have TW accounts for some time now, on some there are amounts like what you have there.

Thank you for your answer, and yes, there is no hot money involved here.

 

[Martin Everson]

Yes they are closing my account and they need a bank account on my name to transfer the funds. This money came directly from a business account in HK and from my business in Europe. Any suggestion are very much appreciated.

If you have the documents then TW should be no problem. Remember TW is a money exchange company. You bring NO I repeat NO value to them parking money there. With negative ECB rates i.e -0.5% you would in fact be costing TW money which they cannot offset by fees alone....lol. So they will be eager to get rid of you even with clean money. It is purely a financial decision they will make at some point to offload you or start charging clients with large balances negative interest rates. I don't think their low margin business can absorb negative interest rates forever sadly not even my bank UBS in Switzerland could for negative CHF .

 

[Tecno]

So, with all of this, where can one open a Savings / Fixed Term Deposit, with nice rates in a reliable & trustworthy bank / country ? (for a EU resident)

Thanks

 

[Martin Everson]

So, with all of this, where can one open a Savings / Fixed Term Deposit, with nice rates in a reliable & trustworthy bank / country ? (for a EU resident)

There is nowhere trustworthy and reliable to do so. That is by design from the ECB with its implementation of negative interest rates. They are pushing you to avoid saving and parking money in banks. They need you to spend and invest that money to keep money flowing and eurozone economy from falling apart.

 

[Tecno]

There is nowhere trustworthy and reliable to do so. That is by design from the ECB with its implementation of negative interest rates. They are pushing you to avoid saving and parking money in banks. They need you to spend and invest that money to keep money flowing and eurozone economy from falling apart.

Yes, that i know, about the ecb negative rates...

But what's the next best thing? Were to invest, without risk and with fixed returns?

 

[kkein]

Whatever you do, do not try to park hot money with TW. Every story I've heard of people trying to park hot money there has ended badly... use them as a passthrough but not for storage

Care to explain? Many here swear it's super safe if your money is legit

 

[kkein]

About costs of keeping money in the accounts, is that ECB forcing institutes to propagate (or pay) the negative interests? Or else why do these institutes have to pay such negtive interests on money owned by end customers and not by ECB?
The other thing is TW, that is based in UK, isn't it? So technically shouldn't it be subject to regulations from BOE, not ECB?

 

[Sols]

About costs of keeping money in the accounts, is that ECB forcing institutes to propagate (or pay) the negative interests? Or else why do these institutes have to pay such negtive interests on money owned by end customers and not by ECB?

ECB has enacted negative interest. Some banks/institutions pass it on to customers directly, others make up for it with transaction fees.

The other thing is TW, that is based in UK, isn't it? So technically shouldn't it be subject to regulations from BOE, not ECB?

All EUR is under ECB's jurisdiction. A British bank holding EUR holds that EUR with the ECB (or with a correspondent bank which in turns holds it with ECB).

Just like all USD is under Federal Reserve's jurisdiction and GBP is under BOE's jurisdiction. And CHF under SNB.

 

[Tecno]

Yes, that i know, about the ecb negative rates...

But what's the next best thing? Were to invest, without risk and with fixed returns?

Can anyone comment on my above question? Thanks

 

[Martin Everson]

Yes, that i know, about the ecb negative rates...

But what's the next best thing? Were to invest, without risk and with fixed returns?

Stay in cash on account and forget investing.

Again the ECB enacted negative rates to force people out of cash and into more riskier investments such as equities and to keep spending etc. Hopefully you can see their policy is actually working as you have nowhere to safely park cash right now - your post above is living proof of this . It used to be MM Funds and AAA treasury bonds i.e German or Dutch bonds where you could park your money safe and get a little interest. However they have made sure they closed that loophole by driving the entire yield curves negative out to almost 30 year bonds....lol.

 

[Frank N Stein]

But what's the next best thing? Were to invest, without risk and with fixed returns?

Everything has risk. Bonds and gold would have the lowest risk in this economic climate. Or you can put cash in a box and bury it somewhere.