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Bank/EMI with 4%+ yield on savings?

#21
Lullaby said:
10-20k
Click to expand...

So your going to all this effort for 800 euros approximately over the course of a year. Or approximately 66 euros a month on average?

I would say don't waste your time too much on this.
 
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#22
JustAnotherNomad said:
Dude, this is not about a treaty. The US has no withholding tax on interest paid on bank deposits anymore. No need to reduce anything under a treaty if the non-treaty rate is 0%.
It's because they want to attract foreign deposits.
The only question if this counts as a bank deposit or dividend.

Read it here directly from the IRS:

Nontaxable Types of Interest Income for Nonresident Aliens | Internal Revenue Service

Nonresident aliens are not taxed on certain kinds of interest income.
www.irs.gov www.irs.gov
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Ok so interest generated from a bank deposit in a US bank is now subject to 0% withholding, nice! I hope they do the same with dividends, lol.

But will the bank report foreign customers under FATCA if they generate interest in the U.S.? If so, they will have to pay taxes back home.

Martin Everson said:
So your going to all this effort for 800 euros approximately over the course of a year. Or approximately 66 euros a month on average?

I would say don't waste your time too much on this.
Click to expand...

66€ a month will help to pay for??? Not much given the crazy inflation running across Europe, but every little helps (Buffett has made billions compounding interest and dividends, lol.)
 
#23
Radko said:
Ok so interest generated from a bank deposit in a US bank is now subject to 0% withholding, nice!
Click to expand...

Correct. And if taxes are withheld by mistake, you can get a refund from the IRS.

Radko said:
But will the bank report foreign customers under FATCA if they generate interest in the U.S.? If so, they will have to pay taxes back home.
Click to expand...

Whether you have to pay tax or not somewhere else has nothing to do with whether there is reporting or not. ;)
 
#25
I'm not sure if those yields at IBKR are considered as interest in a bank's savings account (which is 0), I think it's not because it's a broker account and subject to 30%. Someone who parks more than $10k with IBKR can check for us although you don't get the full yield until $100k parked.
 
#29
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#34
Unfortunately, Schwab can open an account only for residents of the following countries: United States, Argentina, Australia, Bahamas, Belgium, Bermuda, Brazil, Cayman Islands, Chile, Columbia, Costa Rica, Ecuador, Germany, Guam, Guatemala, Hong Kong, India, Israel, Malaysia, Mexico, Panama, Peru, Philippines, Puerto Rico, Qatar, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, Uruguay, British Virgin Islands, U.S. Virgin Islands, and probably some other EU countries and Monaco.
 
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