Updated
GL-M-05
Glossary · Banks and finance
Minimum deposit - the amount a bank requires you to keep in the account
01 / In 30 seconds
The short answer
- What it is
- The minimum sum to keep in an account or deposit on opening
- Why the bank needs it
- It screens out unprofitable clients and sets the level of service
- What if it falls below
- A maintenance fee, a downgraded package, sometimes closure of the account
- Not to be confused with
- With the programme’s investment requirements — these are different sums
- How to check
- Ask in writing: the threshold, the holding period and the penalties
02 / In plain words
What Minimum deposit means
A minimum deposit is the sum the bank requires you to deposit when opening an account or to keep in it at all times. Put simply: an entry threshold and a retention threshold. For mass-market packages it is low or non-existent; for premium service and private banking it is substantial.
Why the bank needs it: serving a client costs money, especially where international transactions and enhanced compliance are involved. The threshold screens out unprofitable clients and at the same time sets the level of service: tariffs, a personal manager and access to products depend on it.
It is important not to confuse a bank’s minimum deposit with the requirements of an immigration programme. A programme may require proof of funds or an investment of a certain size — that is a separate sum with separate logic. The bank’s threshold is a condition of servicing the account, not a condition of obtaining status.
A case from practice
After the investment was paid, a client’s account balance fell below the premium package threshold, and the bank began charging a fee. We build this moment into the budget in advance: the investment amount is calculated separately from the sum that must remain in the account.
When the threshold matters
- Opening an account abroad
- Moving to a premium package
- Entering private banking
- Opening accounts for family members
- Choosing a bank for the programme
- Budgeting for the move
03 / What it covers
What to confirm about the threshold
Amount
- The sum on opening
- The ongoing balance
- The currency it is calculated in
Conditions
- The holding period
- How the average balance is calculated
- Whether investments count
Sanctions
- A fee if it falls below
- A downgraded package
- Possible closure of the account
Family
- A threshold per person
- A combined one for the family
- Accounts for children
04 / How it works
How to check the bank’s requirements
Request the terms in writing
The threshold, holding period and fees - in a letter from the bank.
Confirm how the balance is calculated
On a date, a monthly average or including the portfolio.
Find out the penalties if it falls below
What fee applies and when the package is changed.
Build the sum into the budget
We keep the threshold separate from the investment money.
Open the account
The account is open and the terms are known in advance.
05 / Key facts
What you need to know
01What it is
An entry and holding threshold
An amount at account opening or a permanent balance. Low or zero for mass-market packages, substantial for private banking.
02How it is counted
Often the average balance
Many banks look at the average balance over a period, not on a date. An investment portfolio sometimes counts.
03If it drops below
A fee or a downgrade
The bank charges a service fee, moves you to another package and sometimes closes the account.
04Not to be confused
With a programme requirement
The bank's threshold is a condition of the account. The programme investment or proof of funds is a separate sum.
Common mistakes
Relying on a manager's verbal promises
Get the threshold, holding period and penalties in writing.
Forgetting the threshold after paying the investment
Budget the account balance separately from the investment amount.
Confusing the bank's threshold with the programme requirement
Check both amounts and plan them separately.
06 / Expert advice
How to prepare in advance
The terms on the minimum balance are requested in writing: the amount, the calculation period, what counts towards the balance and what happens if it falls below the threshold. The situation after a large programme payment is checked separately — that is exactly when the balance most often dips, and the client unexpectedly gets a fee or a downgraded package.
What we do for you. We calculate the programme budget together with the banking side: how much goes on the investment and fees and how much must remain in the account so as not to lose the terms of service. That way no unpleasant charges appear after payment.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
The sum the bank requires you to deposit when opening an account or to keep in it at all times as a condition of service.
Usually the bank charges a maintenance fee or downgrades the package. In some cases it may raise the question of closing the account.
More often the average balance over a period is used. This is important to confirm: the calculation method has a big effect on the result.
At some banks, yes — all assets under management are taken into account. The terms differ, so they are requested in writing.
No. The programme requirement and the bank’s threshold are different sums with different logic. They are calculated separately.
Sometimes — by moving other assets to the bank or changing the service package. It is a matter for negotiation with the manager.
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