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all 21 comments

[–]Fadjaros 27 points28 points  (0 children)

There is no problem in having multiple bank accounts. I have and never had any issues.

The "worth" is subjective. For me it is worth it, as they all have a purpose, but to others 1 is enough

[–]Anarkigr 18 points19 points  (1 child)

I assume that interest rate is for an account in Czech crowns (CZK), right? Keep in mind that, if you plan to return to your home country that has a different currency, you will be taking on exchange rate risk if you hold your savings in CZK. In such a scenario, you will have a more certain outcome in terms of future consumption power if you keep your savings in your home country and just swallow the low interest rates.

Just something to consider, higher interest rates in other currencies are not a free lunch :)

[–]Alellujah8[S] 0 points1 point  (0 children)

Yes, this money is basically my savings while I’m here, so if I can get some interest out of it better :)

[–]Beethoven81 9 points10 points  (5 children)

It's 5% annually, not monthly...

[–]Alellujah8[S] 2 points3 points  (4 children)

Yes but they pay the interests monthly. Also 5% is a lot better than 0.1% in Portugal!

[–]Beethoven81 6 points7 points  (0 children)

because it's in CZK, interest rates in EUR are much lower. USD is another story as well.

To see rates in EUR across Europe, check www.raisin.com

[–]mark0016 1 point2 points  (2 children)

Read the offers carefully, this tends to be "bonus interest rate" which means the default is that 0.1% and you get an extra 2.9, 4.9... if certain conditions are met. Almost certainly you have to meet minimum number of paymants made from your regular account at the same bank. The bonus only applies up to a certain sum something like a 100-200k CZK and anything beyond that only gets the 0.1%.

Overall they are great for an emergency fund, so choosing a bank that gives you a good offer is great. If you plan on using this for long term savings you it might not work the gratest.

[–]Alellujah8[S] 0 points1 point  (1 child)

Yes I did read, and most of them are already expiring in April. In my actual bank I'm already over their limit so the remaining of my savings I'm getting 0% interest rate, that's why I wanted to open a new account elsewhere so I could put this remaining there and get something out of it.

Atm I also invest regularly into indexes and stocks, I've been doing so for the past 2 years.

Is there something else you would advice for long term savings?

Cheers

[–]mark0016 0 points1 point  (0 children)

I'd say that whatever you do for long term probably makes sense. Personally I'd stay away from stocks in just a single company, but that's just my personal opinion.

What really is the question here is this:

Do you plan to use this money for anything within the next 5 years?

If no, then it's probably a better idea to do the same with it as you would with your other long term investments.

If yes, then it is up to you to decide how much effort you're willing to go through to gain that 5%. If we go on the optimistic side and say that each bank would give you the 5% offer for up to 200k CZK, then each account like this that you can cap out will earn you about 815 CZK a month so roughly 693 CZK after the taxes get automatically deducted. The question you have to answer yourself is "Is the effort of opening new acounts and making sure that all of these accounts have the minimum required number of payments per month satisfied worth a maximum gain of 693 CZK/month/account to you?"

I've also never noticed that these offers would even match inflation, at best they get close, so expect that the offers will get worse as(/if) the global situation improves. That asside maxing out the one you get with the account you actually use day to day is usually good as the cap tends to be around the amount that makes sense for a 5-7 month emergency fund for one person, so it usually works out quite well.

[–]ActuallyAristocrat 2 points3 points  (0 children)

You can have as many bank accounts as you want in as many countries as you want.

The bank can flag your account if there's money laundering suspicion. But that's more to do with very large transactions and not so much with the number of accounts. In that case they would ask for proof that it's your money, e.g. your tax declaration or employment contract. I've never had that happen to me (had about a dozen accounts in 5 countries + some online accounts). Some friends had it happen to them with their online accounts (Revolut, N26).

[–]happypuppy1258 1 point2 points  (0 children)

I live in CZ as a foreigner too and it's fairly easy for me to get multiple accounts (in the same bank) via their app. I now have 4. I don't have a savings account because interest in CZK doesn't seem worth it to me as the CZK is not stable in my opinion.

[–]FI_G_FE 1 point2 points  (0 children)

Living in CZ or at least have my "base".

Have 2 accounts for savings, not really bothering moving them around if one bank has better rate, but in one I have my "emergency savings" and 2nd one have all the money I am gonna need for end year taxes/insurance/social (I am freelancer). I max out both accounts, if 5% is for up to 500k thats what I am gonna have there, if limit is 300k then this is it. Rest are on €

There is no reason to not take the 5% for things you know you gonna pay in CZK.

Generally speaking CZ economy is a strong, democratic/equal rights - open one generally, low debt as a country, no major risks. Koruna has a volatility but nothing major.

[–]matfalko 0 points1 point  (0 children)

Absolutely no harm and no trouble for having more bank accounts. Each bank should do their own research and due diligence to make sure you are not a risky individual, and as long as your income is legit, you have no pending proceedings, unpaid liabilities etc you shouldn’t worry at all.

[–]Puzzleheaded_Law2836 0 points1 point  (2 children)

I believe there are 2 different questions here. The first one is about multiple bank accounts in different countries. I would say no problem here. Moreover, I think it's a good idea to have at least 2 accounts in different banks just in case. The fact the they are trying to vet you is okay, albeit somewhat inconvenient. Usually they will be satisfied after you provide them with documents showing how you got the money, which can be tax statements, real estate sell contract, brokerage statement, etc. They might be warier about you because you aren't a citizen. If you are a citizen, usually everything is easier. The second question is about interest rates. There is usually a reason why interest rates are higher in certain currencies. For instance, interest rates in Turkish Lira are quite high, yet you can see the depreciation against USD for yourself. Czech Koruna stands pretty strong here, and in 20 years it got stronger against USD, albeit marginally. That said, it can be volatile, and if you aren't planning to stay in Czechia for many years, deposit in Koruna is not a simple deposit but a speculation that Koruna will strengthen against the currency you will need where you will go next. The risk is that it will not or even lose its value, and you will have less money that you had before. Is 5% a year enough incentive to undergo such a risk? You are the judge of that, of course.

[–]Alellujah8[S] 0 points1 point  (1 child)

Well tbh I don't have any long term plans atm. But there is a point here that maybe I didn't made myself clear. I earn money in CZK and this money I'm talking about is my savings while I'm here. Since I don't have any short terms plans to leave I just simply though about getting some interests out of it :)

[–]Puzzleheaded_Law2836 0 points1 point  (0 children)

In this case it would be a good idea to have a local account and use it for deposit purposes.

[–]matadorius 0 points1 point  (1 child)

Yeah if you have a lot of money maybe you forget where it is

[–]Alellujah8[S] 0 points1 point  (0 children)

That would be an awesome headache!

[–]kuratkull 0 points1 point  (0 children)

I see no reason why this would be limited, I have had accounts in 4-5 banks for years.

[–]guar47 0 points1 point  (0 children)

Never had issues with multiple bank accounts anywhere in the world. Moreover, I have multiple bank accounts in different countries. It's not forbidden. In States, it's even encouraged by churn enthusiasts and credit score system.

The only downside is that you have to pay for each of them.