Minimum deposit
Minimum deposit
- 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
In plain words
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.
When the threshold matters
What to confirm about the threshold
- The sum on opening
- The ongoing balance
- The currency it is calculated in
- The holding period
- How the average balance is calculated
- Whether investments count
- A fee if it falls below
- A downgraded package
- Possible closure of the account
- A threshold per person
- A combined one for the family
- Accounts for children
How to check the bank’s requirements
- 01Request the terms in writing
- 02Confirm how the balance is calculated
- 03Find out the penalties if it falls below
- 04Build the sum into the budget
- 05Open the account
What you need to know
- The threshold may apply on opening and as an ongoing balance
- The average balance over a period is often used, not the balance on a date
- An investment portfolio sometimes counts towards the threshold
- A fee is charged if the balance falls below the threshold
- The programme requirement and the bank’s threshold are different sums
Common mistakes
- Relying on the manager’s verbal promises
- Not confirming exactly how the balance is calculated
- Forgetting the threshold after paying the investment
- Budgeting without allowing for the sum that must be held
- Confusing the bank’s threshold with the programme’s requirements
What this means for a BRIDGES client
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.
Frequently asked questions
01 /What is a minimum deposit?
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.
02 /What happens if the balance falls below it?
Usually the bank charges a maintenance fee or downgrades the package. In some cases it may raise the question of closing the account.
03 /Is the balance calculated on a date or as an average?
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.
04 /Do investments count towards the threshold?
At some banks, yes — all assets under management are taken into account. The terms differ, so they are requested in writing.
05 /Is it the same as the programme investment?
No. The programme requirement and the bank’s threshold are different sums with different logic. They are calculated separately.
06 /Can the threshold be lowered?
Sometimes — by moving other assets to the bank or changing the service package. It is a matter for negotiation with the manager.
See also
Read next
This material has undergone editorial review by BRIDGES.
Working out the programme budget?
We will calculate the full budget together with the bank’s requirements — without surprises after payment.