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Last updated: 9th Jan 2012
This section provides detailed information on Cayman banks; how to open a bank account whether for personal use or for a business; investing in Cayman and what the laws are; what it takes to get a local mortgage. We look at telecommunications in Cayman, internet providers and monthly costs; how to connect up your utilities whether electricity, water, cable, or cooking gas. We talk about postal costs and courier fees; Cayman's insurance scene and the costs of health, property and life insurance; the local laws on pensions and employer/employee contributions; how to renew your passport once you are here; Basically everything you will need to know about settling into the Cayman Islands!
 MONEY & BANKINGAll banks in the Cayman Islands adhere to mandatory due-diligence requirements, meaning they will perform fairly extensive checks before opening an account for you. There are no social security numbers here and no credit checks are run, so the banks need to check thoroughly that you are legitimate and that no money is going to be laundered. Non-residents can open bank accounts in Cayman without visiting the Islands but they must submit multiple certified documents to prove their identity, a current overseas address, the source of funds and bank references along with their application. Local banks will often want legitimate rationale for opening an account for an overseas resident and it is worth noting that (for example) a US citizen that has opened an account in the Cayman Islands, will still need to declare the account to the Department of Treasury and declare any income earned on that account. Banks will request some or all of the following information:
- A reference from your current bank, addressed specifically to your choice of bank in the Cayman Islands. This document must include how long you have banked with your home bank, the average balance maintained and the manner in which your account has been conducted. If the applicant has not had a bank account for three years, approval will be at the discretion of the bank. The letter must be the original copy and if a husband and wife are sharing an account, they both must be referenced in the letter. Note that if you’re moving from another country, it is much easier to get this letter organised before you leave your home country and bring it with you.
- A letter from your Cayman employer stating the origin of your funds and the position or job you have with the company. It’s possible to open an account without a job, but again approval will be at the discretion of the bank.
- Valid forms of identification such as your driver’s licence and passport (they will photocopy your documents).
- One form of physical address confirmation, such as your local Cayman electricity bill.
- Your full name and residential address, phone and fax number, nationality, date of birth, occupation and the name and address of your employer.
Opening a Business Bank AccountFor a company incorporated in Cayman, the bank or trust company will need the following:
- Full incorporation paperwork.
- Bank references from a current bank.
- Professional reference from an accounting or law firm.
- All directors, members and signatories to supply all information needed for a personal bank account.
Note: Some banks will not offer chequing services to a new account holder who has just arrived on the Island. However, they will offer you a savings account and a debit card. If you change jobs while in Cayman, you must get a letter from your new employer stating how much salary you are earning and submit this to the bank. Local BanksButterfield Bank (Cayman) Ltd.PO Box 705, Grand Cayman KY1-1107Tel: (345) 949 7055 Fax: (345) 949 7004Email: info.cayman@butterfieldgroup.comwww.butterfieldgroup.comBanking Hours: Butterfield Place Banking Centre (GT), Monday-Thursday 9am-4pm, Friday 9am-4.30pm; Compass Banking Centre (GT), Monday-Friday 9am-4pm; Governors Square Banking Centre (SMB), Monday-Friday 9am-4pm and Saturday 9am-12 noon.Banking Centre Services: accounts, online banking, ATMs, credit and debit cards, currency exchange, wire transfers, bank drafts, utility bill payments, night deposit facilities, safety deposit boxes, standing orders, Saturday banking, mortgage services and loans. Other Services Offered: credit references, home insurance, trust services, private banking and investment management. Cayman National Bank, Ltd. PO Box 1097, Grand Cayman KY1-1102Tel: (345) 949 4655 Fax: (345) 949 7506Email: cnb@caymannational.comwww.caymannational.comBranches & Banking Hours: Edward Street (GT), Monday-Thursday 9am-4pm, Friday 9am-4.30pm; Elgin Ave (GT) and Buckingham Square on West Bay Road (SMB), Monday-Thursday 9am-4pm, Friday 9am-4.30pm; Centennial Towers (WB), Monday-Friday 10am-6pm and Saturday 9am-1pm; Savannah, Monday-Friday 10am-6pm and Saturday 9am-1pm; Little Cayman, Mondays and Thursdays 9am-2.30pm; Cayman Brac, Monday-Thursday 9am-4pm, Friday 9am-4.30pm. Branch Services: accounts, credit and debit cards, online banking, ATMs, loans, mortgage services, currency exchange, wire transfers, bank drafts, utility bill payment, Saturday banking, safety deposit boxes, standing orders, merchant services and night deposit facilities. SEE AD PAGE 97CIBC FirstCaribbean International Bank PO Box 68, Grand Cayman KY1-1102Tel: (345) 949 7300 Fax: (345) 815 2187www.cibcfcib.comBranches & Banking Hours: Downtown George Town, Monday-Thursday 9am-4pm and Friday 9am-4.30pm; Regatta, West Bay Road (SMB) and Plaza Venezia, North Sound Road, Monday-Thursday 9am-3.30pm and Friday 9am-4pm.Branch Services: chequing and savings accounts, credit and debit cards, currency exchange, wire transfers, bank drafts, utility bill payment, teller services, online banking, mobile banking, telephone banking, ATMs, loans and transfers. SEE AD PAGES 19 Fidelity Bank (Cayman) Ltd. PO Box 914, Grand Cayman KY1-1103Tel: (345) 949 7822 Fax: (345) 949 4079Email: bank@fidelitycayman.comwww.fidelitycayman.comBranches & Banking Hours: Cayman Financial Centre, Dr. Roy’s Drive (GT), Monday-Friday 9am-4.30pm; Fidelity Financial Centre (SMB), Monday-Friday 10am-6pm; MoneyCentre, Godfrey Nixon Way (GT), Monday-Thursday 8am-6pm and Friday-Saturday 8am-7pm. Branch Services: chequing and savings accounts, credit and debit cards, online banking, teller services, ATMs, currency exchange, wire transfers, bank drafts, utility bill payment, loans and transfers. HSBC Bank (Cayman), Ltd. PO Box 1109, Grand Cayman KY1-1102HSBC House, 68 West Bay RoadTel: (345) 949 7755 Fax: (345) 949 7634Email: info@ky.hsbc.comwww.hsbc.kyBranch & Banking Hours: HSBC House, 68 West Bay Road, Monday-Friday 9am-5pm, teller services Monday-Friday 9am-4pm. Branch Services: personal and corporate banking, local and international account opening, insurance solutions, mortgage services, loans, savings, investments, wealth management, internet banking, ATMs, credit and debit cards, cheque books, 24/7 call centre support, currency exchange, wire transfers, bank drafts, bill payment, standing orders, teller services and relationship management.Royal Bank of Canada PO Box 245, Grand Cayman KY1-1104Tel: (345) 949 4600 Fax: (345) 949 7396 www.rbcroyalbank.com/caribbean Branches & Banking Hours: 24 Shedden Road (GT), Monday-Thursday 9am-4pm and Friday 9am-4.30pm; Red Bay Branch (next to Grand Harbour), Monday-Friday 10am-6pm. Branch Services: chequing and savings accounts, mortgage services, loans, ATMs, credit cards, internet banking, term deposits, wire transfers, bank drafts and all commercial banking services.
Scotiabank & Trust (Cayman), Ltd.PO Box 689, Grand Cayman KY1-1107Tel: (345) 949 7666 Fax: (345) 949 0020Email: scotiaci@candw.kywww.cayman.scotiabank.comBranches & Banking Hours: Cardinal Ave (GT), Monday-Thursday 9am-4pm and Friday 9am-4.30pm; Foster’s Airport Centre (GT) and The Strand (SMB), Monday-Friday 10am-4pm; South Sound, Monday to Friday 11am-6pm.Branch Services: Full retail and commercial banking services, private banking, ATMs and online banking. SEE AD PAGE 94Electronic Banking, Online Banking & ATMsAll the banks offer online banking, but some are definitely more sophisticated and user-friendly than others. If online banking is important to you then it is worth asking about each bank’s online capabilities. For example, some banks will only allow you to transfer funds between your own accounts; others will let you transfer funds to customers of the same bank without having to involve bank personnel (Butterfield, HSBC, RBC and CIBC FirstCaribbean) and others will allow you to order international wire transfers online. All banks allow you to pay almost all your monthly bills, school fees and other random expenses online. Some banks may charge a small monthly fee to use their online banking services.
ATM machines are available at almost all bank branches and at all the supermarkets. You can use another bank’s ATM machines to withdraw money, but you will incur a fee of around CI$2-$3 for each withdrawal. Getting a MortgageAny of the local Class A banks (as above) can lend money. It’s sensible to shop around, however, as rates are getting more competitive and the percentage above prime (from 1%-5%) can be negotiated. The usual term for a mortgage is 20 years, although some banks will offer as much as 35 years. Most home-buyers will be asked to make a down payment of 5-10% or more as a deposit. There is no such thing as an interest-only mortgage in Cayman as there is in other parts of the world. Definitely ask if you can pay bi-weekly (thereby paying less interest), and check if the bank charges a penalty for early repayment. Some banks charge one and some don’t. Various factors including profession, salary, employer and credit history are taken into account when determining terms, and also whether the applicant is Caymanian or an expat. Once newer residents have established a good financial track record here however, the banks may be willing to renegotiate terms and give a more competitive rate.
When taking out a mortgage it is also worth factoring in that you will be charged stamp duty on the money you borrow. Mortgages of less than CI$300,000 attract a 1% government stamp duty fee while for mortgages of CI$300,000 or higher, figure on 1.5%. If you are using an attorney they typically charge 0.5%, while the bank charges 0.5% on the cost of the mortgage.
If you think you will be here for a few years, buying can be a good investment, and you may pay less on your mortgage than if you rented the same property. However, always consider that when buying a property, the stamp duty is anywhere from 4% to 7.5%, and when selling the property, real estate agents charge between 5%-7.5%, depending on the value of the house. Money Transfer ServicesThere are at least nine Western Union locations on Grand Cayman and several other money transfer companies such as Money Gram, Money Express and National Commercial Bank Cayman.NCB – National Commercial Bank (Cayman) Limited196 Shedden Road, George TownTel: (345) 325 6868The bank is open for all services Monday-Friday 8.30am-5pm, and open for transfers on Saturdays 8.30am-5pm. You can send up to CI$1,000 to Jamaica for a flat fee of CI$5; pay utilities, school fees, insurances etc, and send money to your bank account in Jamaica. Personal FinanceIn the current times, many people are experiencing economic hardship. If you feel you could use some professional help in trying to weather the storm, you shouldn’t be ashamed to ask. People often tend to brush difficulties, and particularly financial difficulties, under the carpet hoping that they will improve. The fact is that if financal matters are not addressed directly the situation often becomes worse and eventually gets completely out of control. It makes good sense to talk to friends and family for advice, or even better, contact a professional financial consultant such as Lewis Consulting Services.LCMoneyplanTel: (345) 916 2000Email: lcs@candw.ky Services include: personal financial counselling (budgets, debt management, managing loans, applying for loans, keeping money in-line); property and life insurance consultant; crisis and disaster preparedness consultations; personal crisis management; motivational speaking. Ralph Lewis is a trained financial counsellor and has over 30 years of senior management experience at Barclays, Cayman National, the Credit Union and CIDB.
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