Scott. R. Says:
Can I open a bank account in Ecuador as a resident, or do I need to be a citizen?
IL Executive Editor Jennifer Stevens Says:
Hi Scott,
You don’t need to be a citizen to open a bank account in Ecuador. In fact, opening a bank account is relatively simple if you are an Ecuadorian resident. Since the country is typically not a source of (or a destination for) laundered funds, the banking controls are not as strict as in other Latin American countries.
On the other hand, Ecuador is not an international banking center, and all banks are Ecuadorian owned and operated. Most banks require that you have a resident’s visa to open a checking account, but most will open a savings account for non-residents.
You will need to provide proof of residence status, a copy of a utility bill showing your address, and your passport to open a checking account. Depending on the bank, you may also be asked to provide references. The process usually takes less than an hour.
An attorney, local resident, or real estate agent can assist you in opening an account and make sure you understand the rules and requirements, although larger institutions almost always have bilingual employees.
There are a number of good banks in Ecuador with convenient hours and many with internet banking services. Be aware that bank deposits are insured for only $32,000. Banco del Pichincha is first rate, as are Banco Guayaquil, Banco del Pacífico, and Banco Bolivariano.
Nonetheless, we suggest that you keep only a year’s worth of living expenses in the bank at any given time. And remember, under FBAR (Foreign Bank Account Reporting), the U.S. requires you to report amounts of $10,000 or more held in foreign banks (whether the $10,000 is all in one bank or you have smaller amounts in several banks that add up to that number).
By the way, Banco Guayaquil and Produbanco have arrangements with the U.S. government to accept direct deposits of U.S. Social Security transfers.
You can get much more information about life in Ecuador—including a comprehensive breakdown of the good and the bad about banking there—in Escape to Ecuador, available on the IL Bookstore.
Got a Question?
Send your thoughts to mailbag@internationalliving.com. We’ll post and respond to as many of your emails as we can right here in the e-letter.