Can I keep my bank account if I move out of the USA?

Keeping Your US Bank Account After Moving Abroad: A Practical Guide

Moving overseas is a significant life change, and managing your finances across borders adds another layer of complexity. One common question that arises is: can I keep my US bank account after I move? The simple answer is yes, you can – but whether you should is a question that requires careful consideration.

While US banks won’t automatically close your account upon your departure, maintaining it as a non-resident often comes with limitations and potential complications. The decision hinges on weighing the conveniences against the potential drawbacks specific to your individual financial situation abroad.

The Potential Benefits of Maintaining a US Account:

• Familiarity and Convenience: Many find the comfort of sticking with a familiar bank and banking system outweighs the potential inconveniences. This is especially true if you anticipate regular transactions with US-based entities, such as receiving rental income, paying US taxes, or maintaining investments in US markets.
• Credit History: Keeping an active account can help maintain a positive credit history in the US, which could be beneficial if you plan to return or need credit for future transactions involving US entities. Inactivity can negatively impact your credit score.
• Simplified Tax Reporting: Having a US bank account can simplify the process of filing US taxes, particularly if you have US-sourced income.
• Access to Specific Services: Depending on your bank and account type, you may have access to specific financial products or services not readily available in your new country of residence.

The Potential Drawbacks of Maintaining a US Account:

• Reduced Services: Banks often restrict certain services for non-resident accounts. You may face limitations on online banking features, ATM access, or even the ability to receive wire transfers. Fees associated with international transactions can also significantly increase.
• Compliance and Reporting: The Foreign Account Tax Compliance Act (FATCA) requires US banks to report the financial activities of non-resident account holders to the IRS. This is designed to combat tax evasion, but adds another layer of complexity to managing your finances.
• Increased Fees: Banks may charge higher maintenance fees or impose other charges for non-resident accounts.
• Currency Exchange Rates: Converting funds between currencies can result in unfavorable exchange rates and associated fees, potentially eroding your savings.

Before making a decision, consider:

• The frequency of your US-based transactions: If you only need to access your account infrequently, the inconvenience might outweigh the benefits.
• The availability and cost of alternative banking options in your new country: Opening a local bank account may offer more convenient and cost-effective solutions for daily transactions.
• Your long-term plans: Do you plan to return to the US? If so, maintaining your US account could be advantageous.

Ultimately, the decision of whether to keep your US bank account after relocating depends on your individual financial circumstances and future plans. Carefully weigh the pros and cons, considering your transaction needs, fees, and long-term goals before deciding the best course of action. It’s always recommended to contact your bank directly to understand the specific implications and restrictions associated with maintaining a non-resident account.