Banking & Money

Banking is one of the most persistent logistical challenges for US citizens living abroad. Unlike most countries, the United States taxes and regulates its citizens' finances worldwide, which means expats must simultaneously maintain a US financial footprint (for income, credit, and IRS compliance) and navigate foreign banking systems that are often reluctant to serve them. The most successful approach is a hybrid one: keep a US-based, expat-friendly checking account as your financial hub, add a multi-currency fintech account for day-to-day local spending, and open a local bank account only where required for rent, utilities, or visa purposes. On the US side, Charles Schwab's Investor Checking account is the most widely recommended option, offering no monthly fees, no foreign transaction fees, unlimited worldwide ATM fee rebates, and a US routing number for direct deposit — and Schwab International explicitly accepts customers with foreign addresses. For moving money across borders, fintech services like Wise and OFX have largely replaced traditional wire transfers: Wise converts at the mid-market rate with transparent fees from roughly 0.33%, while OFX skips flat fees and tends to be competitive on large transfers. Wise's multi-currency account additionally provides local account details (US ACH numbers, EUR IBAN, UK sort code) in 40+ currencies, letting expats receive payments like locals in multiple countries. The regulatory overlay is unavoidable. Any US person whose foreign financial accounts exceed an aggregate $10,000 at any point in the year must file an FBAR (FinCEN Form 114) electronically through FinCEN's BSA E-Filing System, and higher-value foreign assets trigger FATCA reporting on IRS Form 8938 — a separate filing with different thresholds. FATCA also has a practical side effect: many foreign banks limit or refuse American customers to avoid its compliance burden, which is precisely why maintaining strong US-based accounts before you move is so important.

Key Points

• 1Charles Schwab Investor Checking is the standout US account for expats: no monthly or foreign transaction fees, unlimited worldwide ATM fee rebates, and a Schwab International application path that accepts foreign addresses (the $25,000 international minimum was dropped in 2025). Fidelity Cash Management and Capital One 360 are common alternatives.
• 2For international transfers, Wise uses the real mid-market exchange rate with transparent fees starting around 0.33% and reaches 160+ countries; OFX charges no flat fee and is often cheaper for large transfers ($10,000+); Xe and Revolut are additional options — all significantly undercut traditional bank wire fees and 3-5% exchange-rate markups.
• 3The Wise multi-currency account lets you hold 40+ currencies and receive money with local account details (US ACH routing number, EUR IBAN, UK sort code, AUD BSB), effectively giving you a local bank presence in multiple countries; Revolut offers similar holding features but must be opened with a US address before you leave.
• 4FBAR (FinCEN Form 114) is mandatory if your foreign financial accounts — bank, brokerage, even some pensions — exceed an aggregate $10,000 at any time during the year. It is filed electronically via FinCEN's BSA E-Filing System (not with your tax return), is due April 15 with an automatic extension to October 15, and willful non-filing penalties can exceed $100,000.
• 5FATCA adds a second, separate filing: IRS Form 8938 attaches to your tax return when specified foreign assets exceed $200,000 at year-end (or $300,000 at any time) for single filers living abroad — $400,000/$600,000 for married filing jointly. FATCA is also why many foreign banks restrict or refuse US customers, so keep US accounts open before moving.
• 6Keep at least one US credit card with no foreign transaction fees (Chase Sapphire Preferred, Capital One Venture, Bank of America Travel Rewards) and maintain a US mailing address to preserve your credit history — US credit scores don't transfer abroad, and issuers may close accounts flagged with foreign addresses. Always pay in local currency to avoid dynamic currency conversion markups of 3-12%.
• 7US income received abroad — Social Security, pensions, rental income, remote salaries — is easiest to route through a US account with a routing number (Schwab or Wise both work), then convert as needed. Social Security also supports international direct deposit to local banks in roughly 70 countries via form SSA-1199, converted at the Treasury's exchange rate.