What to Look for in a Bank When Moving Abroad

Moving abroad is an exciting prospect, but it comes with a lot of considerations. Finding accommodation, getting a job, and learning more about the local culture are all important first steps, but you also need to think about how your finances will work. 

If you have a bank in your home country, there’s a good chance it won’t offer services abroad. In these cases, it can make sense to open an international bank account to help manage your money. Use this guide to learn what to look for in a bank when moving abroad.

When to Consider an International Bank Account

Before you leave your home country, you should have a plan for what to do with your bank account when moving abroad. Here are some of the instances when you might want to consider an international bank account as a way to access and deposit funds:

• You’ll be working abroad. Earning paychecks with no place to deposit them can prevent you from accessing your money. And even if you cash them, it can be risky to store large amounts of cash under your mattress.
• You don’t want to lose money on conversion fees. A bank account from your home country will be in your home currency. So any time you want to make a transaction where you’re currently living, you’ll pay a currency conversion fee or transaction fee. Having a bank account in your new country eliminates these charges.
• You want access to an emergency fund. Yes, it’s always possible to use a money transfer service to get money fast — as fast as 15 minutes if you’re using Ria Money Transfer. But if you don’t have someone back home to send you money, being able to withdraw it from your own account is faster.
• You want to comply with tax laws. Having an international bank account is a good way to ensure you comply with tax laws, both in your home country and your new country. It provides a clear record of all your income and financial transactions across borders.
• You’ll be traveling to other countries. If you plan to travel around while living abroad, having an international bank account gives you more assurance you’ll have access to money wherever you go.

When Not to Consider an International Bank Account

It doesn’t make sense for every traveler to open an international bank account. For example, if you’ll just be living abroad for a few months, it might be easier to carry cash or just use a credit card for your purchases. But if you are moving abroad for the foreseeable future, then an international bank account is a good idea.

Also, many banks do work internationally. For example, J.P.Morgan Chase has banks in over 100 countries and handles over 60 global lending currencies. HSBC is another bank that has a large global network in 62 countries. If you have an account at a bank with a global presence, you may not need to consider a new international account. 

Key Features You Need in an International Bank

Now that you’ve identified your need for an international bank account, you need to think about the features that offer the most value. Here are some of the things to look for in a bank when moving abroad.

Deposit Insurance

Every country sets the rules for deposit insurance for banks. In the United States, for example, the Federal Deposit Insurance Commission insures up to $250,000 per depositor, per insured bank — so if the bank you chose went under, you’d be guaranteed to get up to that much of your deposit back. In the European Union, the coverage is €100,000, and in the U.K., it’s £85,000.

Good Exchange Rates

At some point, you’ll likely be moving currency back and forth between your new and old accounts. You want to make sure your new account has a decent exchange rate so you won’t lose too much money in fees. A country’s central bank manages the rate for national currency, but banks can tack on their fees or hike the rate up. Look for a bank that’s up front and reasonable with charges.

Online Banking Services

It should be a given that most banks have online account access — but that might not be true of a smaller bank in a smaller country. As an expat, you’ll greatly benefit from having online banking if you plan on traveling around or visiting your home country.

ATM Access

If you’re opening a checking account, it should come with a debit card you can use to withdraw cash from ATMs. Double-check the bank’s ATM network to ensure it has enough locations. For example, if it only allows you to withdraw money from specific bank ATMs, that might not be enough freedom to satisfy your wanderlust.

No Foreign Transaction Fees

At some point, you’ll likely visit home. When you do, you want a bank that won’t charge you a fee to use your card. Foreign transaction fees are typically 2% to 3% of a transaction, so they can quickly add up with large purchases.

Multi-currency Accounts

Some banks allow you to hold multiple currencies in one account. This is a very helpful feature if you travel back and forth between your home country and new country. You can spend the currency of whatever country you’re in without the need to convert it.

International Wire Transfers

This one isn’t a must-have, but it can be helpful. International wire transfers allow you to send and receive funds across borders in just a few days. However, if your bank doesn’t have this feature, Ria Money Transfer can help. With our services, you can send or receive money to over 500,000 pickup locations in 190+ countries.

Dedicated Customer Support

Opening an international bank account can sometimes be confusing, so you’ll want robust customer service agents on your side. Make sure the bank has customer support in a language you’re comfortable speaking. Also, see if they have a 24/7 helpline or online chat so you can get in touch whenever you need help.

Best Bank Accounts for Moving Overseas

The best bank account for you depends on exactly where you’re moving and your financial needs. That said, here are some of the best banks that work internationally. 

Best for No Fees: Chime Online Checking Account

The Chime checking account has no monthly fees and lets you access cash without fees at over 50,000 ATMs. The included debit card also works internationally anywhere Visa is accepted, all without foreign transaction fees. Just keep in mind that Chime does not support cards in several popular countries, including China, Korea, and Russia.

Best for Multi-currency Support: Revolut

Revolut lets you hold over 25 currencies in your account, which is extremely helpful if you travel a lot. You can also use the debit card to spend in over 140 countries. If you want to exchange currencies, you can complete up to $1,000 in exchanges per month without any additional exchange fees. Upgrading to the paid account for $9.99 a month moves that limit to $10,000. For unlimited exchanges, you’ll pay $16.99 a month.

Best for International Wiring: Citibank CitiGold

If you can qualify for the Citibank CitiGold account (you’ll need a combined average monthly balance of $200,000 or more), it has a ton of benefits. For example, you’ll get fee-free ATM access in over 20 countries. Plus, if you want a bank that can handle international wire transfers, Citi is a good choice. CitiGold customers don’t pay any fees, and there’s no limit for transfers made in USD.

Best for No Foreign Transaction Fees: Capital One 360

The Capital One 360 checking and savings accounts are a powerful combination for international travelers. There are no account fees, ATM fees, or foreign transaction fees, so you can spend freely no matter where you are. One drawback is that Capital One only services the United States, Canada, and the United Kingdom, so it might not be the best if you’re moving outside of those areas.

Best for High Balances: HSBC Premier

HSBC is a uniquely global bank, with locations in over 62 countries. Because of that, you can open an account in one country and use HSBC’s dedicated overseas account opening support team to help you transfer it to another. To qualify for Premier status, you’ll need at least $75,000 in total deposits. Naturally, there are also no foreign transaction fees with your debit card.

Best ATM Rebates: Charles Schwab Bank

The Charles Schwab checking account has no monthly fees or foreign transaction fees. It also comes with unlimited ATM fee rebates for cash withdrawals worldwide. Travel notifications and fraud alerts can also keep you safe if your account is compromised. Just keep in mind, you’ll need a brokerage account to sign up.

What to Do About Your Current Bank Account

You might be wondering — should I close my bank account if I move to another country? Unfortunately, there’s no cut-and-dry answer here — it all depends on your personal situation. If you never plan on returning to your home country and your account isn’t accessible where you’re moving, you’d be better off closing it. That way, you’ll know for sure you don’t have money sitting around in an account you can’t withdraw from.

You might also want to close your account if you’ll have to pay monthly fees for it. Even banks that don’t charge monthly maintenance fees might eventually charge a dormant account fee if you don’t use your account for a while. It makes no sense to pay fees on an account you’re not using.

However, there are a few reasons to keep your account open. If you think you’ll return home in a couple of years, having an account already open can save you time and hassle during what will likely be a hectic move. You might also need an account to pay bills or taxes. For example, in the United States, most expats still have to file a U.S. tax return, even if they’re living overseas.

How to Open an Overseas Bank Account

Opening an overseas bank account might be a little harder than opening an account in your home country. Here are the basic steps to follow:

1. Check the eligibility requirements. Many banks require you to have a permanent residence in the country as well as a job before they give you an account.
2. Gather the required documents. You’ll need a lot of documentation to open an account. It’s common to have to show your passport, proof of address, proof of income, and financial documents.
3. Head to the bank in person. Because you’re a foreigner, the bank will likely want you to complete the application process in person.
4. Complete the application. You’ll need to fill out your personal information. The application will likely be in the country’s language, so bring an interpreter if you don’t feel comfortable.
5. Deposit funds. This part can be a little tricky, as you’ll typically need to make a wire transfer from your old bank account. Luckily, Ria can help simplify the process and fund your new bank account faster.

Transfer Money to and From Your International Bank Account with Ease

That covers all the information you need to select an international bank that will meet your needs. Once you find the perfect bank, Ria can help you transfer money between your old and new accounts with ease — all at great rates. Transfer your money online, through the app, or at one of Ria’s in-person locations, and get near-instant access to your funds. Try Ria today.