One of the suggestions I make to newcomers is to open a local bank account. After all, Panama is a major banking center. It is well worth the effort expended to get through the paperwork required in order to have the convenience of a local checking account. You can then pay your rent, telephone bill, buy groceries, and pay your club dues or any one of a dozen other things that will come up during the month. Transfer on a regular basis a convenient amount of money in order to meet these expenses but keep your money in your home country or wherever you have had it during your adult life. While the major Panama Banks are perfectly safe, they do not pay much in interest on deposits (2%). In fact, contrary to most savings account plans which encourage saving, the Panama system requires activity on a regular basis or the bank will access charges that will deplete your balance. In other words, if you deposit $1,000 in a savings account and expect it to stay in the bank and grow with interest and do not either make more deposits or withdrawals, the bank will charge a monthly fee and over time your $1,000 will disappear. Further, a variety of other investment options back home such as certificates of deposit or treasury bills will pay significantly more interest with less hassle.
