Banking Abroad: Keeping US Accounts and Opening Local Ones

Money logistics are one of the least glamorous parts of moving abroad and one of the most important. Most Americans abroad end up running two systems side by side: US accounts that receive Social Security, pensions, or a paycheck, and a local account for rent, utilities, and daily spending. Getting both working, and moving money between them cheaply, takes some planning that is best done before you leave.

Keep your US accounts working

Don't close your US bank accounts when you move. You will need them for Social Security and pension deposits, US credit cards, tax refunds, brokerage transfers, and paying US bills. The challenge is keeping them open and usable from abroad.

The address problem

US banks and brokerages must know their customers, and many are uneasy with an account holder who has only a foreign address. Depending on the institution, switching your address abroad can trigger restrictions on trading, closure of investment accounts, or requests for extra documentation. Policies vary widely, so ask your bank and brokerage directly, in writing if possible, what happens when you live abroad.

Many expats keep a US mailing address, often a trusted relative's home or a mail-forwarding service in their state of domicile. Think about the tax implications of that address, and read our guide to mail, phone, and a US address before you decide.

Protect your access

• Keep a US phone number that can receive text messages. Many banks still send security codes only by SMS to US numbers.
• Set up an authenticator app or security key where your bank allows it.
• Tell your bank you are moving so foreign logins and charges don't lock your account.
• Order replacement cards before you go if yours expire within a year. Cards mailed abroad get lost.
• Keep two separate accounts and cards at different institutions so one fraud freeze doesn't leave you without money.

Opening a local bank account

A local account makes life much easier. Landlords, utilities, and phone companies prefer local transfers or direct debits, and many visa processes require proof of funds in a local bank.

What banks usually ask for

• Your passport and, in many countries, your residence permit or visa
• A local tax identification number, which may need to be obtained first
• Proof of local address, such as a lease or utility bill
• Proof of income or source of funds
• A US Form W-9, because you are a US person

This creates a chicken-and-egg problem: some visa applications want a local account, and some banks want a residence permit. Many countries have a workaround, such as non-resident accounts or accepting a visa approval letter. Check your destination guide, for example Portugal or Panama, and the bank's own requirements.

FATCA friction

Under FATCA, foreign banks must identify American customers and report their accounts to the IRS. That is why the bank asks for your W-9 and Social Security number. Some smaller banks and investment platforms find this burden not worth it and decline Americans. If one bank says no, try another, particularly larger banks that already serve many foreign residents.

Once your local accounts are open, remember your own reporting duty. If your combined foreign accounts exceed $10,000 at any point in the year, you file an FBAR. See FBAR and FATCA.

Moving money: transfers and exchange rates

Every international transfer has two costs, and only one is obvious:

1. The fee. A flat or percentage charge to send the transfer, plus sometimes a receiving fee from the destination bank or an intermediary bank.
2. The exchange-rate markup. The difference between the rate you get and the mid-market rate, which is the midpoint between buying and selling prices that you see on financial news sites. Many providers advertise "no fee" and build their profit into a weaker rate.

Practical habits:

• Compare the amount that arrives, not the fee. For the same dollar amount on the same day, which provider delivers the most local currency?
• Send larger, less frequent transfers if flat fees dominate.
• Decline conversion by the sending bank if the receiving side offers a better rate, and vice versa. Test with a small amount.
• Know your rights. US consumer protection rules require remittance providers to disclose fees and taxes, and to investigate errors you report. The CFPB's money transfer pages explain the details.

If you receive Social Security, ask whether international direct deposit is available in your country, which can avoid some of these costs. See Social Security abroad.

ATMs and credit cards

ATMs

Withdrawing local cash from a US debit card can involve three charges: your bank's foreign ATM fee, a foreign transaction fee (often a percentage), and a fee from the local ATM operator. Some US accounts reimburse ATM fees or waive foreign transaction fees. Read your account terms before you rely on one.

When an ATM or card terminal offers to charge you "in US dollars," say no and choose the local currency. This offer, called dynamic currency conversion, usually comes with a poor exchange rate.

Credit cards

Many US credit cards charge a foreign transaction fee, often around 3%, on every purchase abroad. Cards without that fee are common. If you will use a US card regularly, switching to one with no foreign transaction fees is one of the easiest savings available. Keep your US credit history active with at least one card you use and pay off, since you may need US credit when you visit or return.

Scams that target newcomers

New arrivals are attractive targets: unfamiliar with local norms, moving money in large amounts, and often in a hurry. Watch for:

• Rental deposit scams. The "owner" is abroad, can't show the apartment, and wants a deposit by wire, gift card, or cryptocurrency. The FTC's red flags for rental listing scams apply worldwide. See our housing abroad guide.
• Fake bank or government calls. Someone claiming to be your bank, the IRS, or SSA asks you to "verify" a code or move money to a safe account. Hang up and call the official number yourself.
• Changed payment instructions. An email that appears to be from your lawyer, landlord, or real estate agent says the account details have changed. Confirm by phone using a number you already have.
• Street money changers offering great rates. Use banks, ATMs inside bank branches, or licensed exchange offices.
• Investment pitches from new friends. Expat communities are close-knit, which makes affinity fraud effective. Be skeptical of anyone offering high, guaranteed returns.

Banking setup checklist

1. Before you leave: confirm your US bank and brokerage policies for foreign addresses, set up a US mailing address and phone, and get a no-foreign-transaction-fee card.
2. First weeks abroad: use your US cards and ATMs while you collect the documents a local bank needs.
3. After residency: open the local account, test a small transfer, and set up direct debits for rent and utilities.
4. Every year: track maximum foreign balances for your FBAR and review your transfer costs.

Last reviewed October 17, 2026. General information only, not legal, immigration, or tax advice. Requirements change, so confirm with official sources before you apply. See our disclaimer.