It is not unusual for an expat to have a handful of bank and savings accounts globally – this could include ones in the UK, the country you're currently residing in, a Jersey or Isle of Man offshore savings account and a multiple currency account.
But by failing to monitor them and keep minimum balances you could find yourself owing a small fortune in fees and charges. Offshore banks, or local banks holding foreign currencies, typically charge if you fail to keep sufficient cash in the account.
If the balance falls below that minimum the bank will make a fixed administration charge each month for holding the account open. These can vary between US$20 and $40 per month.
Andrew Wood, executive director of financial advisers PFS International, said: "Minimum required balances vary a great deal. I am aware of some banks in Jersey who require $50,000 or more, which in my view is very unreasonable.
"In Asia these balances can be even higher for foreign currencies. Thus if you had a minimum requirement of $50,000 and you let the balance fall below that, to say $45,000, you may be charged $25 per month, or $300 per year. That is expensive banking when you consider that your account may have very little movements but the bank is actually leveraging off your balance for loans which attract high interest rates."
But by failing to monitor them and keep minimum balances you could find yourself owing a small fortune in fees and charges. Offshore banks, or local banks holding foreign currencies, typically charge if you fail to keep sufficient cash in the account.
If the balance falls below that minimum the bank will make a fixed administration charge each month for holding the account open. These can vary between US$20 and $40 per month.
Andrew Wood, executive director of financial advisers PFS International, said: "Minimum required balances vary a great deal. I am aware of some banks in Jersey who require $50,000 or more, which in my view is very unreasonable.
"In Asia these balances can be even higher for foreign currencies. Thus if you had a minimum requirement of $50,000 and you let the balance fall below that, to say $45,000, you may be charged $25 per month, or $300 per year. That is expensive banking when you consider that your account may have very little movements but the bank is actually leveraging off your balance for loans which attract high interest rates."
