Expat Banking Guide: Bank Accounts, Money Transfers, and Financial Setup Abroad

Banking is one of the most stressful parts of moving abroad, and it almost never gets the attention it deserves until something goes wrong. You land in your new country, try to withdraw cash, and discover your US bank has frozen your card for “suspicious activity.” You try to wire money to pay your deposit, and the fee is $45 plus a 3% exchange rate markup you did not see coming. Or worse — you get a letter three months in saying your bank is closing your account because you no longer have a US address.

These are not edge cases. They happen to expats constantly, and the threads on r/expats, r/digitalnomad, and r/ExpatFIRE are full of people scrambling to solve banking problems they could have prevented with a few hours of preparation before departure. The financial infrastructure you set up before you leave is just as important as your visa paperwork and flight booking.

This guide covers everything you need to know about managing money as an expat: which US banks will keep you as a customer, which ones will not, how to transfer money internationally without getting gouged on fees, multi-currency accounts that simplify life abroad, the FATCA and FBAR reporting requirements that come with foreign accounts, and country-specific advice for opening local bank accounts in popular expat destinations. Whether you are a remote worker, retiree, or digital nomad, getting your banking right from the start will save you hundreds — potentially thousands — of dollars over your time abroad.

Why Expat Banking Is So Complicated

The core problem is structural. US banks are regulated domestically and have very little incentive to accommodate customers who live overseas. After the passage of the Patriot Act (2001) and FATCA (2010), the compliance burden of maintaining accounts for non-resident customers increased significantly. Many banks decided it was simpler — and cheaper — to close those accounts entirely rather than deal with the reporting requirements.

At the same time, the foreign banking landscape has shifted dramatically. Many overseas banks now refuse to open accounts for American citizens because of FATCA's requirement that they report account details to the IRS. This creates a uniquely frustrating situation: your US bank does not want you because you live abroad, and your new country's banks do not want you because you are American. Understanding this dynamic is the first step toward solving it.

On top of the account access problem, there is the cost problem. Traditional international wire transfers charge flat fees on both ends (typically $25–$50 per transfer), use unfavorable exchange rates with hidden markups of 2–5%, and can take 3–5 business days to arrive. For someone who needs to move money regularly — paying rent abroad while receiving income in USD — those costs compound quickly. A single $3,000 monthly rent transfer through a traditional bank wire could cost you $100+ per month in fees and poor exchange rates. That is $1,200 a year, gone.

US Banks That Work for Expats

Not all US banks will abandon you when you move abroad. A handful of institutions either explicitly welcome non-resident customers or have policies permissive enough to work. Here are the ones that consistently get recommended in expat communities:

Charles Schwab International

This is the gold standard for American expats, and for good reason. The Schwab High Yield Investor Checking Account comes with a linked brokerage account and offers unlimited ATM fee rebates worldwide. That means every ATM fee charged by any machine, anywhere in the world, gets refunded at the end of each month. There are no foreign transaction fees on debit card purchases. The exchange rate used is the Visa network rate, which is close to the interbank rate and far better than what most banks offer.

Schwab also does not require a US address to maintain your account, though you do need a US address to open one. The standard advice is to open the account before you leave. If you have already departed, a family member's address or a US mail-forwarding service can work for the initial application. The minimum deposit is $0, and the brokerage account that comes with it is a solid place to park investments if you also need a US-based brokerage.

The one downside: Schwab is a brokerage-first institution, so if you need traditional banking services like cashier's checks, notarized documents, or in-person branch service, you will not have them. For most expats, this is a non-issue. You are not walking into a branch anyway.

HSBC Expat

HSBC operates a dedicated HSBC Expat division based in the Channel Islands, specifically designed for internationally mobile customers. This is the best option if you want a proper international bank with multi-currency accounts, international mortgage services, and the ability to hold and manage money in multiple currencies from a single platform.

The catch is the entry barrier. HSBC Expat typically requires a minimum deposit of $50,000 (or equivalent) or proof of a salary above a certain threshold. This makes it well-suited for higher-earning professionals and retirees with substantial savings but less accessible for younger expats or digital nomads just starting out. If you qualify, the service is excellent — dedicated relationship managers, multi-currency accounts in over 20 currencies, and seamless transfers between HSBC accounts worldwide.

Citibank Global Transfers

Citibank's Global Transfer feature allows you to move money instantly between Citibank accounts in different countries. If you are moving to a country where Citi operates (UK, Singapore, Hong Kong, Australia, UAE, Mexico, among others), having Citi accounts in both locations gives you free, instant transfers at competitive exchange rates.

Citi has been scaling back its retail banking operations in some markets, so availability varies. Check whether Citi has retail operations in your destination country before committing. The US account itself is generally fine to maintain as a non-resident, though Citi may ask you to update your address periodically. The Citi Priority tier (requiring $30,000 in combined balances) unlocks fee-free wire transfers and better exchange rates.

Capital One 360

Capital One does not specifically market to expats, but its 360 Checking Account has no foreign transaction fees on debit card purchases, which puts it ahead of most US banks. There is no minimum balance, no monthly fee, and the online-only model works well for people who do not need branch access.

Capital One does not reimburse ATM fees the way Schwab does, so you will still pay whatever the local ATM operator charges (typically $2–$5 per withdrawal abroad). It also uses a US address for the account, and while many expats report maintaining their accounts without issues, the bank's terms technically require a US residential address. Keep a valid US address on file — a family member's or a registered agent — and you should be fine.

Banks That Commonly Close Non-Resident Accounts

If your primary bank is one of the following, start planning your transition now. These institutions have a well-documented pattern of closing accounts for customers who move abroad:

Chase

Chase is the most commonly reported offender in expat forums. The bank requires a valid US residential address and will flag accounts where transaction patterns suggest the customer has moved overseas. Many expats report receiving letters asking them to confirm their address, followed by account closure notices when they cannot provide a domestic one. Some manage to maintain Chase accounts by keeping a US address on file and continuing to use their account for US-based transactions, but it is a gamble. Chase's compliance team has become increasingly aggressive about enforcing residency requirements.

Wells Fargo

Wells Fargo has similar policies to Chase. The bank has been known to close accounts when it detects that a customer has relocated internationally. The account terms require a US residential address, and Wells Fargo actively enforces this. The bank's international remittance service (ExpressSend) works well for one-time transfers to select countries, but maintaining a regular checking or savings account as a non-resident is risky.

Bank of America

Bank of America takes a particularly strict approach to Patriot Act compliance and non-resident accounts. The bank has closed accounts for customers who update their address to an international one and for those whose transaction patterns suggest they are living abroad. If you currently bank with BofA and are planning a move, open a Schwab or Capital One account well before your departure date and transition your direct deposits and autopays over gradually. Do not wait until you are already overseas to discover your access has been cut off.

The pattern across all three banks is the same: they are optimizing for domestic retail customers and view non-resident accounts as a compliance liability rather than a customer relationship worth maintaining. This is unlikely to change. Build your financial infrastructure around banks that actually want your business as an expat.

Money Transfer Services: How to Move Money Internationally

Even with the right US bank, you will need a way to move money from your American accounts to your local accounts abroad. The difference between the cheapest and most expensive options can be enormous — hundreds of dollars per transfer on larger amounts. Here are the main options ranked by cost-effectiveness:

Wise (formerly TransferWise)

Wise is the default recommendation in nearly every expat community, and for good reason. The platform uses the mid-market exchange rate (the real rate you see on Google or Reuters) with a transparent, upfront fee that is typically 0.4–0.8% of the transfer amount depending on the currency pair and payment method. For a $3,000 transfer from USD to EUR, you might pay $15–$25 in total fees. Compare that to a traditional bank wire, which might charge $45 in flat fees plus a 2–3% exchange rate markup — costing you $100+ for the same transfer.

Wise also offers a multi-currency account (more on this below) that lets you hold balances in 40+ currencies, receive money like a local in 10+ countries (with local bank details), and convert between currencies at the mid-market rate. Transfers typically arrive within 1–2 business days, and many routes deliver within hours.

OFX

OFX is a better choice for large transfers — typically $10,000 or more. The platform does not charge a flat fee on most transfers, instead making its money on a small margin above the mid-market rate (typically 0.3–0.7%). For large amounts, this can work out cheaper than Wise. OFX also offers forward contracts that let you lock in an exchange rate for a future transfer, which is useful if you are planning a large purchase (like a property deposit) and want to protect against currency fluctuations.

The downside is speed. OFX transfers typically take 1–3 business days, and the platform is less user-friendly than Wise. There is no multi-currency account or debit card. Think of OFX as a specialist tool for large, planned transfers rather than an everyday banking solution.

Remitly

Remitly is designed primarily for remittances — sending money to family in developing countries. It offers excellent rates and fast delivery to countries in Latin America, Southeast Asia, and Africa. Delivery options often include bank deposit, mobile money, and even cash pickup. If you are sending money to countries like the Philippines, Mexico, India, or Colombia, Remitly's rates and delivery speed are hard to beat.

For expats sending money between developed countries (USD to EUR, USD to GBP), Remitly is generally not as competitive as Wise. The platform is optimized for a different use case. But for the specific corridors it serves well, it is an excellent tool to have in your arsenal.

Traditional Bank Wires

The worst option for recurring transfers, but sometimes unavoidable. Bank wires go through the SWIFT network, which involves correspondent banks that each take a cut. A typical international wire costs $25–$50 on the sending side, plus the receiving bank may charge another $10–$25. The exchange rate used is the bank's own rate, which typically includes a 2–4% markup over the mid-market rate. On a $5,000 transfer, you could lose $150–$250 in total costs.

There are situations where a bank wire is necessary: large property purchases where the seller requires a wire from a recognized bank, initial account funding for some foreign banks that do not accept transfers from fintech platforms, and certain visa-related proof-of-funds requirements. For everything else, use a specialized transfer service.

Transfer Method Comparison

Multi-Currency Accounts: One Account, Many Currencies

If you earn income in one currency and spend in another — or if you move between countries — a multi-currency account can dramatically simplify your financial life. Instead of holding separate bank accounts in each country and paying conversion fees every time you move money, a multi-currency account lets you hold, receive, and spend in multiple currencies from a single platform.

Wise Multi-Currency Account

The Wise account lets you hold balances in 40+ currencies and provides local bank details in 10+ countries, meaning you can receive money as if you had a local account in the US, UK, EU, Australia, New Zealand, Singapore, and more. The attached Wise debit card automatically spends from the correct currency balance when you make a purchase, or converts at the mid-market rate if you do not have sufficient balance in that currency.

For Americans abroad, the Wise account solves several problems at once: you can receive your US income into your USD balance using US bank details, convert to your local currency at the mid-market rate whenever you choose, and spend locally with the debit card. Monthly fees are zero for the basic account. The card costs a one-time fee (typically $9). This is the single most recommended financial product in expat communities for good reason.

Revolut

Revolut offers a similar multi-currency experience with some differences. The free plan allows you to hold 30+ currencies and provides fee-free currency exchange up to a monthly limit (currently around $1,000/month on the free plan; unlimited on paid plans). Beyond the free limit, a small markup applies (typically 0.5–1%).

Revolut's strength is its ecosystem: the app includes budgeting tools, crypto trading, stock trading, travel insurance, and virtual cards. Paid plans (Plus, Premium, Metal) add features like airport lounge access, higher exchange limits, and better insurance. The downside for Americans is that Revolut's US version is more limited than the European version. US-based Revolut accounts do not yet offer all the multi-currency features available to European customers, though the platform has been expanding its US capabilities steadily.

N26

N26 is a German neobank that operates across the EU and is popular with expats based in Europe. It offers a sleek mobile app, fee-free payments in any currency (on the paid plans), and local IBAN bank details for receiving EUR payments. N26 does not currently offer accounts to US residents, so this is an option only if you are establishing residency in a supported European country.

For Americans moving to Germany, France, Spain, or other EU countries, N26 can serve as your primary local account. The free plan includes basic banking, while the N26 Smart ($4.90/month), You ($9.90/month), and Metal ($16.90/month) plans add travel insurance, partner offers, and priority support. It is not a replacement for a US bank account but a solid companion for your European financial life.

FATCA and FBAR: What Expats Must Report

Opening bank accounts abroad triggers US reporting requirements that many expats do not learn about until it is too late. These are not optional, and the penalties for non-compliance are severe. There are two main requirements:

FBAR (FinCEN Form 114)

If the aggregate value of all your foreign financial accounts exceeds $10,000 at any point during the year, you must file an FBAR electronically with FinCEN. This includes checking accounts, savings accounts, investment accounts, and any account where you have signature authority — even if you do not own it. A joint account with a non-US spouse counts. A business account you can sign on counts.

The $10,000 threshold is aggregate, not per-account. If you have three accounts holding $4,000 each, your aggregate is $12,000 and you must file. The deadline is April 15 with an automatic extension to October 15. Penalties for non-willful failure to file are up to $10,000 per account per year. Willful violations can reach $100,000 or 50% of the account balance, whichever is greater.

FATCA (Form 8938)

FATCA has two sides: the institutional side (foreign banks reporting to the IRS) and the individual side (you reporting to the IRS). As an individual, you must file Form 8938 if your foreign financial assets exceed certain thresholds. For expats filing as single, that threshold is $200,000 at year-end or $300,000 at any point during the year. Married filing jointly doubles those thresholds.

Form 8938 overlaps significantly with the FBAR, but they are filed separately (8938 goes with your tax return; FBAR goes to FinCEN) and cover slightly different assets. You may need to file both. For a detailed breakdown of all US tax obligations for expats, including FBAR, FATCA, the Foreign Earned Income Exclusion, and the Foreign Tax Credit, see our complete guide to expat taxes.

Practical Implications for Banking

The reporting requirements should not stop you from opening foreign accounts — you need them to function in your new country. But they should inform your record-keeping habits. Keep track of maximum account balances throughout the year. Save monthly statements or screenshots. Note the exchange rate you use for conversions to USD. A simple spreadsheet updated monthly is sufficient for most people. If your finances are complex (multiple accounts in multiple countries, investment accounts, business accounts), this is one of the areas where an expat CPA earns their fee.

Country-Specific Banking: Opening Accounts Abroad

Every country has its own rules, documentation requirements, and quirks when it comes to opening a bank account as a foreigner. Here is what to expect in four of the most popular expat destinations:

Portugal

Portugal is one of the easier European countries for expats to open a bank account. You will need your passport, a Portuguese tax number (NIF — Número de Identificação Fiscal), and proof of address. The NIF is straightforward to obtain — you can get one at a local tax office (Finanças) or through a fiscal representative if you do not yet have Portuguese residency.

Major banks include Millennium BCP, Novo Banco, Caixa Geral de Depósitos, and Santander Portugal. Most have English-speaking staff in Lisbon and Porto branches. Digital banks like ActivoBank (owned by Millennium BCP) offer free accounts with no monthly fees and a fully online application process, making them a popular choice for expats who want a no-frills local account. As an American, you will be asked to fill out FATCA self-certification forms — this is standard and should not prevent you from opening an account, though the process may take longer than it would for EU citizens.

Thailand

Opening a bank account in Thailand as a foreigner has become more restrictive in recent years. The major banks — Bangkok Bank, Kasikornbank (KBank), Siam Commercial Bank (SCB), and Krungthai Bank — officially require a work permit or a long-term visa (retirement visa, Thai Elite visa, or a non-immigrant visa) to open an account.

In practice, policies vary by branch. Some Bangkok Bank branches are known for being more accommodating to tourists and digital nomads, accepting a passport and a Thai phone number. Others will turn you away without a work permit. The best strategy is to visit multiple branches, dress professionally, and bring as much documentation as possible: passport, visa, proof of Thai address (a lease or hotel booking), a letter from your employer or clients, and a Thai phone number. Chiang Mai branches tend to be more flexible than Bangkok branches for opening accounts with tourist visas.

Once you have an account, Thai mobile banking apps (especially KBank's K PLUS and SCB Easy) are excellent — Thailand is one of the most digitally advanced banking markets in Southeast Asia. QR payment systems are ubiquitous, and domestic transfers between Thai banks are instant and free through the PromptPay system.

Mexico

Mexico is relatively straightforward for expats with temporary or permanent residency. You will need your passport, your temporary or permanent resident card (tarjeta de residente), proof of address in Mexico (a utility bill or lease), and your CURP (a Mexican population registry number, which you receive as part of the residency process).

Popular banks include BBVA México (the largest bank, generally expat-friendly), Banorte, Santander México, and Citibanamex. BBVA is the most commonly recommended for expats due to its extensive branch network and functional mobile app. Opening an account on a tourist visa is technically possible at some branches but unreliable — residency status is strongly preferred.

One important note: Mexico's banking system is still heavily cash-dependent in many areas outside major cities. Even with a Mexican bank account and debit card, you may find yourself needing cash more often than you would in the US or Europe. ATM withdrawal limits are typically 7,000–10,000 MXN per transaction (around $400–$570 USD), and ATM fees for non-bank ATMs can be steep. Plan accordingly.

Germany

Germany has a reputation for being bureaucratically demanding, and banking is no exception. To open a standard bank account, you will need your passport, your Anmeldung (city registration certificate — you must register your address within 14 days of moving), and in many cases a German tax ID number (Steuerliche Identifikationsnummer), which is mailed to your registered address after your Anmeldung.

Traditional banks like Deutsche Bank, Commerzbank, and Sparkasse (local savings banks, which vary by city) all offer standard checking accounts (Girokonto) but the application process can be slow and paper-intensive. Many expats find it easier to start with a digital bank like N26 or Vivid Money, which can open an account in minutes with just your passport and an Anmeldung. You can always add a traditional bank later if you need one for specific purposes like mortgage applications.

Germany is still a surprisingly cash-heavy society. Many restaurants, bakeries, and smaller shops do not accept cards. The phrase “Nur Bargeld” (cash only) is something you will encounter regularly. Always carry some cash, and be aware that EC cards (the German domestic debit system) are more widely accepted than Visa or Mastercard debit cards in some establishments.

Building Your Expat Financial Stack

Based on everything above, here is the financial infrastructure most experienced expats recommend building before (and shortly after) your move:

Before You Leave

• Open a Charles Schwab checking account — this becomes your primary US account with worldwide ATM access and no foreign transaction fees.
• Open a Wise multi-currency account — this handles your currency conversions and international transfers at the lowest cost.
• Keep a US credit card with no foreign transaction fees — Capital One Venture, Chase Sapphire (if Chase keeps your account open), or Amex are good options. Credit cards offer better fraud protection than debit cards for international purchases.
• Set up online access for all accounts and ensure your phone number is current for two-factor authentication. Consider switching to app-based 2FA (like Google Authenticator) rather than SMS-based, since your US phone number may change.
• Download your bank's app and test it — make sure everything works before you are 8,000 miles away and needing to troubleshoot.

After You Arrive

• Open a local bank account in your new country as soon as you have the required documentation (residency permit, local address registration, tax ID). You need this for receiving local payments, paying rent, and setting up utilities.
• Set up a regular transfer schedule from your US account to your local account via Wise. Many expats transfer a month's worth of expenses at a time to minimize fees and simplify budgeting.
• Start a spreadsheet tracking foreign account balances for FBAR purposes. Note the maximum balance in each account during the year. This takes five minutes a month and saves hours of stress at tax time.

Common Mistakes to Avoid

The expat banking landscape is full of avoidable errors. Here are the ones that come up most frequently:

• Waiting until you arrive to sort out banking. If your US bank closes your account while you are abroad, you have no way to access your money until you set up alternatives. Do this before you leave.
• Using your US bank for ATM withdrawals abroad. Most US banks charge a $5 foreign ATM fee plus a 3% foreign transaction fee on every withdrawal. On a $300 withdrawal, that is $14 in fees — nearly 5%. Use Schwab or Wise instead.
• Sending large wire transfers without comparing options. A single $10,000 transfer through a traditional bank wire versus Wise can differ by $200–$400. Over a year of monthly transfers, that adds up to thousands.
• Ignoring FBAR and FATCA reporting. These are not suggestions. The penalties are real and the IRS is actively enforcing them. If you have foreign accounts, you must report them.
• Keeping all your money in one currency. If you earn in USD and spend in EUR, converting a large sum once when the rate is favorable is usually better than converting small amounts constantly. Use Wise's rate alerts to get notified when the exchange rate hits a level you are happy with.
• Not having a backup payment method. Cards get lost, frozen, or demagnetized. Always carry at least two cards from different institutions and keep a small amount of local cash as an emergency reserve.

The Tax Connection: Why Banking and Taxes Are Linked

Your banking setup directly affects your tax obligations. Every foreign account you open potentially triggers FBAR filing. Every currency conversion creates a gain or loss that the IRS technically expects you to track. Every transfer between accounts is a data point in your financial picture that needs to be consistent across your tax return, your FBAR, and your Form 8938.

This does not mean you should avoid opening foreign accounts — you cannot function as an expat without them. It means you should be intentional about your banking structure. Keep it as simple as possible: one US account, one international transfer service, one local account. Add complexity only when there is a clear benefit. Every additional account is another line item on your FBAR and another balance to track.

For a comprehensive walkthrough of US tax obligations for Americans abroad, including the Foreign Earned Income Exclusion, Foreign Tax Credit, and tax treaty benefits, read our expat taxes guide. And if you are still in the planning phase of your move, our moving abroad checklist covers banking alongside every other logistical step you need to complete before departure.

The Bottom Line

Expat banking does not have to be a nightmare. The financial infrastructure available today — Schwab for US banking, Wise for transfers and multi-currency, and a local bank in your destination country — solves 90% of the problems that made managing money abroad painful a decade ago. The key is setting everything up before you leave, not after you are already overseas and scrambling.

Build your financial stack deliberately: a US bank that welcomes non-residents, a transfer service that does not gouge you on exchange rates, a local account for daily life, and a simple system for tracking balances for tax reporting. Get those four pieces right, and money management becomes one less thing to worry about in your new life abroad.

Your choice of destination also matters for your banking experience. Some countries make it easy for foreigners to open accounts; others make it an exercise in patience and paperwork. If you are still deciding where to move, our country matching quiz can help you find the right fit based on your priorities — including financial infrastructure and ease of setup.