How to Open an International Bank Account
[ad_1] The post How to Open an International Bank Account appeared first on Millennial Money. Most millennials would jump at the opportunity to travel and work remotely for extended periods of time. If you plan to spend more than a few weeks in another country at a time, you should strongly consider opening a bank account there to save money and avoid hassles. Keep reading to get a complete overview of international bank accounts, including how to open one, why you should, and more. Opening an international bank account: A step-by-step guide Opening an international bank account isn’t hard. Here’s an overview of what you can expect. Understand your country’s exchange rate Check if you can use your existing bank Determine what features you need Select a bank Fund your account 1. Understand your country’s exchange rate One of the first things you should do when considering a new country is learn about the exchange rate. This is going to determine how far your money goes. It’s also going to impact how much interest you collect, if any. Some countries have very favorable exchange rates for the U.S. dollar, while others aren’t quite as good. Check out the specific rates at your destination country using the Wall Street Journal’s updated currency rankings and free converting tool. 2. Check if you can use your existing bank Some banks offer international services with branches in foreign countries (more on that later). If this is the case, you may not have to switch banks at all, making life a lot easier. For the most part, only large national banks have branches abroad. However, even if your bank doesn’t, it’s a good idea to check in with them before your trip. For example, you may want to inform them that you plan to use your debit card to withdraw money internationally. Taking this step can reveal any potential fees you may encounter and ensures that your bank doesn’t flag your international charges as potentially fraudulent. 3. Determine what features you need If you need to shop for a new international bank, make sure to get one that matches your specific needs. Checking account A checking account provides quick access to capital without any monthly spending restrictions. Savings account Most people don’t need a savings account abroad, but if you sign up for one, keep in mind that the IRS and the U.S. Treasury require Americans to report foreign accounts with more than $10,000 in them. You’ll need to declare these on your taxes and fill out FinCEN Form 114. ATM access Traveling without cash is not advisable. Even if you use mobile pay and debit cards, you should always carry some cash or have access to cash when you need it. With that in mind, make sure the bank you sign up for has easy ATM access. Ideally, you can access cash throughout the country or region where you’re staying. Mobile and online banking You’re not always going to have access to a computer or physical bank branch. As such, you’ll want to work with a bank that offers high-quality mobile banking with a robust app. Some international bank apps won’t be accessible from the U.S. App Store. Therefore, you may need to change your App Store location to the region where you now live to download your new bank’s app. This can get tricky if you rely on other apps or monthly subscription services that are only available in the U.S. App Store. One way to get around this is to get a second phone and new phone plan, which you might want to do anyway. Investing There is no reason to open up a new investment or brokerage account abroad (unless you are opening one with a United States-based provider). It’s just too complicated, and the United States has by far the best options in terms of online brokerage services. Serious investors would be wise to check with their particular brokerage firm, and possibly a tax advisor, to ensure compliance with the IRS and local tax agencies. 4. Select a bank If you have the option to work with a global financial provider, this is probably your best bet. You’re more likely to avoid issues like language barriers, accessibility, and customer service complications. Here’s a breakdown of some of the top global banks to consider. HSBC HSBC, which stands for the Hongkong and Shanghai Banking Corporation, has a global footprint that extends across 65 countries and territories. Simply put, HSBC accounts are a top choice for international travelers. What we like about HSBC: The bank offers stellar customer service and a solid online platform. The company also offers a special expat banking service, catering to people who prefer an international lifestyle. Charles Schwab Schwab is one of the most trusted and widely used investment platforms. For travelers, the firm offers expat accounts in the United Kingdom, France, Ireland, Sweden, Singapore, Thailand, and Malaysia, among other countries. You need a U.S. address to qualify. What we like about Schwab: With the Schwab Visa Debit card, you can make everyday purchases in different currencies wherever Visa is accepted. Schwab also reimburses for international ATM fees. Citibank International Personal Bank U.S. Citibank offers international banking through the Citibank International Personal Bank U.S. service. Simply open a foreign account through Citi, transfer funds through the bank, and you’re good to go. What we like about Citibank International: This service is backed by Citi, one of the biggest names in global finance. With thousands of international branch locations, Citibank is a top choice for multinational executives and corporate employees. Local banks If you don’t have access to an international bank—and many of you won’t—don’t worry. Ask around and go with the most popular bank in that region, and you should be just fine. Going back to the extended Florence trip: if you want to open a bank account in Italy, simply do a Google search for “best bank in Italy” and you’ll find a bunch of
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