Is it good to put a money in a foreign bank?

Question

If I have a bank account in another country and I am making over $2000 of interest a year.

Do I have to report that money I made when I make my taxes in the US. I am asking this question because foreign banks pay more interest than US banks. Plus they don't tax you.

My bank account in which I am looking to put my money, they dont ask for my US social security card plus they dont ask for my US address.

Answer 1

You need to report all income and assets (such as the amount moved to or made from a foreign account) to the US gov if you're a US citizen. In this case there is no way of them knowing of your foreign income but if for some reason your found out there could be penalties.

Answer 2

If the interest is paid to you here in the US from the foreign bank then it is taxable. If it stays in the account then it will only be taxable when the money is paid to you.

Answer 3

not good

Answer 4

That's messed up.  If you have a bank account, they'll want to know where you live.  I smell a scam.

Answer 5

You have to pay taxes in that country and in the U.S., but you can deduct on the 1040 form up to $300 you paid in foreign taxes.  That $300 doesn't get deducted from your gross income, but the final taxes owed to the federal government.  You also have to pay state income tax on that money.

Answer 6

Only if the money is illegal but it into a bank in the Camen Islands

Answer 7

How secure is you money though?  Is it insured?  I'm sorry, I would not risk my money out of the greed of a high interest rate.  If you're comfortable though, then go for it.

Answer 8

do it! do it! do it! .....  

Answer 9

you should put it in a bank! to save up to buy a car,gas price, and millage

i would love to have the car of my dream!i got my license 5 weeks agpo . so save money in a foreign bank it could be good for you!

Answer 10

"Do I have to report that money I made when I make my taxes in the US?"

Yes, depending on the size of the account, you must report it to the IRS.

If the sum of all foreign accounts exceed $10,000 at any time during the year all US citizens are required to file a "Report of Foreign Bank and Financial Accounts".

And remember, that $10,000 refers to the sum of the account holdings, not the amount of interest or dividend income you may be receiving.

http://www.irs.gov/irs/article/0,,id=184...

Sorry, but true.