You're reading: How to open a bank account

If you want to open a bank account in Ukraine, the first thing you need to ask yourself is, ТAm I nuts? After all, the image of Ukrainian banks doesnХt bring to mind words like solvency, security, or even user-friendly. If youХre looking merely for a place to store your dollars and hryvna, an old shoe or coffee can might be safer.

If you expect to receive wire transfers from abroad, the fastest and safest way to get your money from outside Ukraine is to use Western Union ( 4/6 Desyatynna vul. Tel. 228-04-96). But itХs not cheap. Western Union charges up to a 15 percent commission for a transfer of less than $3,000. The commission on amounts above that sum starts at 4.5 percent.

If you want to receive regular wire transfers without paying such a high fee, youХll have to go through a bank.

The essential thing is to choose the right bank because even big and seemingly respectable banks can collapse in a day. Still a number of banks, for some reason, are considered safe and reliable. The Kyiv Business Directory lists some of them, but itХs a good idea to ask Ukrainian friends or colleagues who actually use banks.

ItХs better to choose a bank with strong connections to the Ukrainian government. Pryvatbank or Prominvestbank are connected, but remember that everything could change after the presidential elections.

Keep abreast of the political and economic climate and be prepared to withdraw your money at the first sign of trouble.

Generally, the procedure for opening a dollar account for individuals is simple. Foreigners need only bring their passports (with a Ukrainian visa), and Ukrainians must show their tax identification code. After that, be prepared to fill out a bunch of random forms, and thatХs it.

DonХt expect or ask for a free toaster or hair dryer. ItХll only confuse the tellers and make them crankier than usual.

All bank customers must pay a fee ranging from $4 to $10 for opening an account. There are all sorts of accounts ranging from non-interest bearing ТcurrentУ accounts, for those who want to receive money and immediately withdrawal it, to savings accounts. We assume Kyiv Post readers know better than to open a savings account in a Ukrainian bank. If not, call your bank of choice for more information on the procedure.

In addition, some banks require customers to maintain a balance of at least $20. The bank commission for wire transfers ranges from 1 percent to 3 percent. A transfer from abroad usually takes from 2 to 5 days.

Those who want to keep their wads of rapidly devaluing hryvna in a bank, can open a separate account. A hryvna account costs from Hr 5 to Hr 15. Those who earn wages in hryvna can have their salaries deposited directly into a bank account. To withdrawal the money, simply call ahead and order an amount and then go and pick it up.

Olga Kryzhanovska