Panama Banking

Looking to retire or move to Panama permanently? Then this page is for you. Below is all the information that you need to know about banking in Panama. For the rest of your plans see the other Panama Living pages here.

Panama is home to the second largest banking center in the world, behind that of Switzerland. With more than 100 banks from over 32 countries around the world to choose from, setting up an account in Panama can be difficult if you don't know what you are looking for. The reason for so many banks, from all over the world, to operate in Panama is simple. Panama offers a favorable banking environment, due to its banking laws, combined with a number of other advantages which facilitate banking activity. These advantages include the use of the US dollar ($) as legal currency, the attractive monetary policy, the free flow of capital and other legal aspects.

Due to the use of the US dollar, Panama is able to maintain a stable and fast growing economy, illustrated by the 3.9% growth in 1998, while the Latin American average was only 2.5%. When combined with the inflation rate of just 0.6%, it is clear to see why Panama is so attractive to the potential investor.

Panamanian banks tend to offer very attractive interest rates on their USD ($) savings accounts. Many banks offer above or around 6.5% annual interest on these accounts. These rates however are subject to change at any time, due to influence from international interest rates and may also be dependant on a number of conditions, such as minimum deposits, minimum account balance etc.

Many of the banks operating in Panama will offer the option of internet banking to all of their customers, making money management and paying bills much easier. All of these banks use the most up to date and secure security systems on their online facilities, meaning that your information will stay 100% safe and confidential. Cash machines are available in numerous locations around the country. The banks also operate a number of branches around the country for your convenience.

Banks will offer numerous types of accounts and credit cards to the prospective customer. All of which need to be considered carefully in order to make sure that the right decision is made for you.

There really is very little difference between the first 3 of these cards. The names silver, gold and platinum used to signify a significant difference in earnings and therefore spending power, along with the added kudos that each higher card brings. However, today, the bands for these cards have been moved so close together, it doesn't take much to afford the Platinum card.

The major difference that people will find nowadays is the membership fees for these cards. while silver cards will have a very low or even non existent membership fee, Platinum customers are likely to be paying substantial fees for their cards, and the status that is attached to them.

The air miles card offers the most significant difference between the various options available. This type of card rewards the user for card usage, by clocking up air travel miles depending on the amount spent. This type of card is particularly useful for the international business person, who may be flying from country to country on a regular basis. All of these options should be taken into account before making your decision, as well as finding the right credit limit and interest option for the user.

Debit cards are now offered with most accounts in Panama. On debit cards issued in Panama, the 'Clave' symbol will be displayed, which means that the card can be used in any ATM machine that displays either the 'Plus' or 'Interlink' symbols, they can also be used at any point of sale position that accepts plastic as a form of payment. There are no charges for using these debit cards at ATM machines, however, depending on the retailer, there may be some charges at point of sale transactions.

These are basic bank accounts, which tend to provide the consumer with the best interest rates on their money. The rates of interest on these accounts will vary, depending on the amount of initial deposit, and the frequency and size of subsequent deposits. A general rule is that the more money you deposit, the better the interest rate is that you will be offered.

There are two types of checking accounts that can be opened in Panama, with different benefits and requirements, depending on the intended usage of the account.

The international checking account is the ideal account for someone looking for an international recognized account, with internationally accepted checking facilities using the USD ($). The requirements and features of these accounts will be slightly different from bank to bank. The details provided below are some rough guidelines of what to expect.

Minimum Initial Deposit:
Minimum Balance Requirement:
Fee for falling below US$5,000:
Returned Check Fee:
Bounced Check Fee:
Checkbook (50 checks):
Certified International Bank Check:
Interest Rate:

US$5,000
US$5,000
US$25 per month
US$40
US$50
US$5
US$10
No interest paid on checking accounts

The local checking account is the best account for local use. Whether paying a local friend, person or business, this account will suit all purposes in Panama. Checks from this account are only for cashing and depositing in Panama, they cannot be used internationally. The requirements and features of these accounts may vary from bank to bank, however some guidelines have been included below:

Minimum Initial Deposit:
Minimum Balance Requirement:
Fee for falling below US$5,000:
Returned Check Fee:
Checkbook (50 checks):
Certified Local Check:
Certified International Check:
Interest Rate:

US$1,000
US$1,000
US$10 per month
US$35
US$5
US$2
US$5 - US$25 (Value dependant)
No interest paid on checking accounts

For information on how to set up one of these accounts, and the documentation needed, please visit the "Setting up an Account" page.