Banking

If you are here on a visitors visa only you may have heard that you can not open an account without an A.R.C? Well it's not true! There are banks that will open an account for you with only a passport. So if you are getting a little nervous with all your money lying around then read on, we have tried to answer some of the more basic questions.

You will generally find two types of banks in Taiwan and these are government owned and independent. The government owned banks are usually more tightly regulated and ask you to make some uncomfortable disclosures when opening an account. I recommend going to an independent bank because they are competing against each other to get deposits and are much more willing to help you than the government owned banks. You will be able to open an account at one of these banks with just a passport for identification, a minimum deposit, and a few questions. The most common type of account opened is called a "Demand Deposit" account. This kind of account is similar to a savings account back home, you are not allowed to write checks but you'll get an ATM card with unlimited withdrawals at a minimal fee. The ATM withdrawal fee is free if you go to a branch of your own bank, otherwise it is only NT 7 at any other bank. Most ATM machines have an English option so don't have to worry about accidentally transferring all your hard earned money to someone else's account. If you do encounter any problems with a bank when opening an account then simply try another one there are plenty of banks out there that would be happy for your business.

Generally speaking banking hours are from 9:00 a.m. to 3:30 p.m. Monday to Friday, and they are not open on Saturdays. The employees usually work until 5:30 p.m. so you can still make inquires by phone if you get connected to someone who can speak English. I have also (and no guarantees here!) gone to the branch after 3:30 and been served because I simply asked nicely! If you find it too much of a hassle making deposits all the time simply have your school do a direct deposit into your account, just ask a clerk at your bank for the proper form.

One final note on banking, and that is taxes. Of course they don't tax you on any of your principal in your account, just on any interest that you have earned. However they do deduct from foreigners a whopping 20% of any interest you earn, this is deducted right at the bank so you never see this money. The interest that you earn less the 20% tax is directly deposited to your account. The nice part is that filing of tax return is not needed. Depending on how often you have your interest deposited to your account is when they deduct the tax. You will receive periodic statements from the bank showing the tax deducted. If you have a Taiwanese friend that you totally trust you can open an account in their name as they do not get this tax deducted directly like foreigners do, therefore saving you this tax.

Below is a list of some of the larger independent banks. Picking the right bank is totally up to you I prefer to deal with a bank that is conveniently located to my home or school. Here I have indicated some interest rates paid on savings accounts just in case this is an important factor in making your decision about which bank to deal with. These rates are subject to change, so please make sure to confirm them with whichever institution you deal with.

Bank	Interest
China trust	0.225%
Bank of Taiwan	0.75%
International Bank of Taipei	0.10%
International Commercial Bank	0.55%
Chung Hwa Bank	0.55%
Bank of Overseas Chinese	.10%
United World Chinese Commercial Bank	.35%