How to do due diligence before depositing into a foreign bank

[alwaysonit]

I've been advised to do my due diligence before transferring lots of my savings abroad.
Can anybody help advise me on what exactly I should be asking the bank for here, and what should put me off?
Thanks in advance.

[grantmeaname]

What country? Are there big multinationals like HSBC that you could deposit in?

[KBecks2]

What is your reason for transferring your money?  Do you know anyone abroad who can give you some recommendations?  You may want to research that country's banking laws and any protections for depositors.

[alwaysonit]

Transferring the funds for higher interest rates

[Paul der Krake]

Yeah, you will need to give a lot more information than this.

- amounts considered
- country
- citizenship(s) of the account holder(s)
- jurisdiction of the account holder

Things get hairy really quickly if you're talking of large sums.

[Mr. Frugalwoods]

Transferring the funds for higher interest rates

Whoah.

Have you researched foreign exchange risk?  Higher interest rates often come with a higher risk of inflation which can negatively affect exchange rates.

Do you intimately know the geopolitical situation of both your host country and your intended deposit country?

Have you read and understood what happened to normal savers from around the world when the Icelandic savings banks failed?  This was a textbook case, and something I often think about.  I came _this_ close to using icesave in 2006.  I'm glad my greed didn't get the better of me.

To start, what country do you live in and what country are you planning to deposit into?  And how much money are we talking here?

Don't want to be a downer, but usually this is a poor idea.

[Beric01]

Transferring the funds for higher interest rates

Whoah.

Have you researched foreign exchange risk?  Higher interest rates often come with a higher risk of inflation which can negatively affect exchange rates.

Do you intimately know the geopolitical situation of both your host country and your intended deposit country?

Have you read and understood what happened to normal savers from around the world when the Icelandic savings banks failed?  This was a textbook case, and something I often think about.  I came _this_ close to using icesave in 2006.  I'm glad my greed didn't get the better of me.

To start, what country do you live in and what country are you planning to deposit into?  And how much money are we talking here?

Don't want to be a downer, but usually this is a poor idea.

Fully agree.

To the OP: You're not just investing in another bank that happens to get better interest. You're also investing in a foreign currency. Basically, you're gambling on that currency; betting that it will continue to perform at least as well as your current currency.

Really risky, and IMO not recommended.

[brewer12345]

f you want to take FX risk as a retailer, at least use Everbank which ensures your money is FDIC insured.

[alwaysonit]

Thanks for the replies guys, I was hoping somebody could tell me exactly what I should look for in a bank while doing my due diligence to set a benchmark of when a bank looks safe or too risky.
The foreign deposits will be in EUR or USD so no currency risk unless the deposit protection has to step in and repay me in their weaker currency, http://forum.mrmoneymustache.com/ask-a-mustachian/hard-currency-deposits-abroad-at-high-interest-rates/ is a thread where I have been talking about this.
Paul der Krake, I have about 500,000 EUR which I would spread about keeping under deposit insurance limits, am an Irish citizen and not a tax resident of anywhere.