What Is a Bank Deposit and Can It Be Used to Obtain Residency?

When it comes to reliable financial tools, fixed-term bank deposits are often overlooked in favor of more dynamic investment options. But they come with their own set of advantages: stability, clear conditions, and even some unexpected opportunities. In this article, we’ll explain how fixed-term bank deposits work, what makes them valuable, and whether they can help you obtain permanent residency abroad. You'll also find a useful comparison with an alternative that Mundo experts recommend as a more convenient option. 

Term Deposit Rates and Capital Management 

Understanding Bank Deposits and Their Benefits 

A fixed-term bank deposit is a formal agreement between a client and a financial institution where the client places funds for a set period. The bank cannot change the terms during this time, and the client cannot withdraw funds without losing the interests. Among other tools, this is one of the most straightforward and secure ways to preserve wealth and plan for significant future expenses. 

For instance, in Hong Kong, interest rates can reach up to 2.1% annually for deposits starting at 500,000 HKD for 12 months. 

In India, options are available with term deposit rates of up to 7.05% annually for periods ranging from one year to 375 days. 

These examples illustrate the earning potential of fixed-term deposits in different parts of the world. A high-interest savings account is a good tool for safeguarding your money, but if your goal is long-term growth, a fixed-term deposit is a more effective option. 

*Please note: the rates mentioned above are for general information purposes; they may be valid at the time of publication and may be changed by the respective banks. This doesn’t mean that the bank accounts offered by Mundo have these rates.

How Fixed-Term Bank Deposits Work 

Choosing a fixed-term bank deposit means locking in your funds for a fixed term, which may range from several months to a few years. The bank uses these funds in its operations and repays the principal along with accrued interest at maturity. This allows the investor to earn predictable income with minimal involvement and risk. This option is especially attractive to individuals seeking reliable and transparent ways to increase their savings. 

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Residency Through Bank Deposits and a Practical Alternative 

Can a Bank Deposit Help You Get Residency? 

Yes, in certain countries, a fixed-term bank deposit can serve as a qualifying investment for residency. In Panama, for instance, there’s a Qualified Investor program that allows for three types of investment, one of which is placing funds in a fixed-term deposit with a licensed Panamanian bank. 

While a high-interest savings account can help preserve your capital with flexibility, only a fixed-term deposit meets the requirements for this immigration route. This path requires proof of the foreign origin of the funds and compliance with legal requirements. 

Even though local banks do not publicly disclose exact term deposit rates under this program, the very possibility of using a bank deposit to qualify for residency makes it an attractive strategy. Still, our experts encourage you to consider an alternative. 

Real Estate: A Flexible and Accessible Option 

While fixed-term bank deposits are a valid route for affluent investors, they require a minimum investment of $750,000 under Panama’s Qualified Investor program. In contrast, Mundo offers a more accessible option: real estate investment. Through the same Qualified Investor program, you can qualify for residency with a minimum real estate investment of $300,000, which is over twice as affordable. 

You’ll also own a physical asset that you can move into, rent out, or resell. Moreover, we work with Panama’s leading developers to offer you premium-class projects with full property management and a legally transparent framework. 

This route helps build a solid plan that comprehends lifestyle, passive income, and relocation. Unlike a fixed-term bank deposit, real estate may increase in value and generate rental income, offering additional financial benefits. 

Disclaimer: The information provided in this article is for general informational purposes only. It should not be considered legal or investment advice. Always consult a qualified professional before making any financial decisions. Mundo and the authors are not responsible for any actions taken based on the content of this article. 

Final Thoughts on fixed-term Bank Deposit and Residency 

A fixed-term bank deposit can be a useful tool for preserving and growing wealth. In some cases, it may also serve as a path to legal residency, such as in Panama. However, it’s just one of many options. 

While a high-interest savings account is suitable for safeguarding your funds with easy access, only a fixed-term deposit qualifies you for a residence permit. If you're looking to reduce your costs and gain access to an asset with added benefits, real estate could be a smarter choice. 

Reach out to Mundo today. We’ll help you choose the right investment strategy. Start your journey to a new lifestyle with trusted experts by your side. 

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