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HMRC internal manual

International Exchange of Information Manual

Financial Accounts: Depository Account

Financial Accounts: Depository Account

A Depository Account includes any commercial current, savings, time or thrift account, or any account evidenced by a certificate of deposit, investment certificate, thrift certificate, certificate of indebtedness, or other similar instrument where cash is placed on deposit with an entity engaged in a banking or similar business. Being engaged in a banking or similar business is explained at IEIM400740.

A Depository Account does not have to be an interest bearing account.

A Depository Account will not include issuing e-money in exchange for funds pursuant to the Electronic Money Regulations 2011, or any funds received from customers with a view to the provision of unregulated payment products that fall within the statutory exclusions provided in the Electronic Money Regulations 2011 or Payment Services Regulations 2009.

A Depository Account can include a credit balance on a credit card, for example where a purchase has been refunded, provided the credit card has been issued by a credit card company engaged in a banking or similar business.

Credit cards will not be reportable as Depository Accounts if the credit card issuer meets the conditions to be a Qualified Credit Card Issuer and is therefore a Non-Reporting Financial Institution [see IEIM400970]. Similarly, where a Financial Institution does not satisfy the requirements to be a Qualified Credit Card Issuer, but accepts deposits when a customer makes a payment in excess of a balance due with respect to a credit card or other revolving credit facility, it may still not have to report the account as a Depository Account if it qualifies as an excluded account [see IEIM401880].

For FATCA and CDOT reporting, a threshold is available at the option of the Financial Institution to restrict reporting of Depository Accounts to accounts with a balance in excess of an amount equivalent to US$50,000 [see IEIM402565]. Where this option is exercised by the Financial Institution there is no need to review, identify or report any Depository Account with a balance or value of $50,000 or less.