Banks in Bermuda attract business owners with Bermuda headquarters as well as offshore investors lured by the island group's lack of taxation. The Bermuda Monetary Authority, which regulates banking in Bermuda, prohibits international banks from registering or operating as Bermuda banks, maintaining tight local control. Although you won't find interest-bearing checking, and Bermuda banks charge the highest service fees in the world, tax-free savings and investment accounts make Bermuda banking attractive for foreign depositors and businesses.
Bermuda banking institutions use the Bermuda dollar as their primary currency. The Bermuda dollar (BD$), which runs at or close to parity with the US dollar, cannot be exported or exchanged anywhere else in the world. Bermuda banking institutions do accept deposits in US dollars, but bank ATMs dispense only Bermuda dollars. The euro is not accepted in Bermuda banks.
It's easy to compare Bermuda banks, because there are only 4 choices--Bank of Bermuda, Butterfield Bank, Bermuda Commercial Bank Limited and Capital G Bank Limited. To open a Bermuda bank account, you'll need:
1. Proof of your identity;
2. Your valid passport to show Bermuda banking officials;
3. Evidence that the deposit is legitimate, to satisfy Bermuda banking institutions' strict anti-laundering policies.
Action Steps
The best contacts and resources to help you get it done
Choose the Bank of Bermuda for international connections while banking in Bermuda
The Bank of Bermuda recently has been added to the global network of the Hongking and Shanghai Banking Corporation (HSBC), giving you more international connections than are possible with other locally owned Bermuda banking institutions.
I recommend: The Bank of Bermuda's
Small Business Centre puts you in touch with your own relationship manager.
Investment Management services offer your business the tax advantages of banking in Bermuda, along with the global resources of HSBC.
Grow your business banking in Bermuda with Capital G Bank
Review the investment services that Capital G Bank Limited offers. Corporate service of merchant accounts, banking, investments and the added benefits of online banking help you focus on your success. Let Capital G Bank's professional advisers help you navigate the strict financial regulations associated with banking in Bermuda.
I recommend: Capital G Bank offers a guide to your
investments tailored to your specific needs. With more than $60 billion is investment assets, Bermuda is a world financial leader. Capital G helps to manage your
offshore global account so it can grow.
Master Bermuda commercial banking with Bermuda Commercial Bank
Bermuda Commercial Bank Ltd. provides Bermuda commercial banking through services such as payroll, escrow, mutual funds management, pension fund management and company formation and management.
I recommend: Bermuda Commercial Bank assists in the formation of a
Bermuda Exempted Company. This allows your company the advantage of Bermuda's favorable tax structure. This same tax structure makes Bermuda Commercial Bank's
Mutual Fund Services an attractive investment option for the offshore investor.
Meet your needs for corporate banking in Bermuda with Butterfield Bank
Butterfield Bank has been a Bermuda bank for more than 150 years. Its business and corporate services include credit account services, corporate trust, merchant services, treasury and market services and employee benefit trusts.
I recommend: Butterfield Bank focuses on corporate solutions. It assists in making transactions go smoothly with
escrow arrangement services. They can also help you achieve your financial goals with investment products offered by their subsidiary,
Butterfield Asset Management.
Tips & Tactics
Helpful advice for making the most of this Guide
- Unlike U.S. bank accounts that are protected by the Federal Deposit Insurance Corporation, your deposit in a Bermuda banking institution will not be protected.
- To encourage investment, Bermuda now allows entities other than banks in Bermuda, which are limited by strict regulations, to handle financial transactions such as check cashing, loans and investments.
The official source of Banks in Bermuda is the Banks in Bermuda page at Business.com
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