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

Can You Keep Your US Bank Account After Leaving the States? The Answer Isn’t Always Simple.

So, you’re packing your bags, saying “see ya later” to Uncle Sam, and embarking on a new adventure abroad. Excitement is in the air! But amidst the flurry of visa applications, language learning, and figuring out how to say “cheers” in your new country, a practical question might be nagging at you: what happens to your US bank account?

The good news is, simply moving out of the USA doesn’t automatically mean you need to close your American bank account. It’s perfectly legal to maintain it, even as a non-resident. However, the situation isn’t always straightforward, and the real question is: should you?

While keeping your account technically possible, navigating the complexities of maintaining a US bank account as a non-resident requires careful consideration. Banking policies vary significantly between institutions, and what works for one person may be a headache for another.

Here’s what you need to consider:

• Bank Policies on Non-Resident Accounts: This is the most crucial factor. Contact your bank directly and inquire about their policies for customers who are no longer US residents. Some banks might restrict certain services, require specific documentation, or even close accounts of non-residents due to compliance issues.

• Minimum Balance Requirements and Fees: Many banks impose minimum balance requirements, and failing to meet them can result in hefty monthly fees. If you’re no longer actively using the account for daily transactions, meeting these minimums might become burdensome and costly. Be aware of inactivity fees as well, which can drain your account over time if you don’t use it regularly.

• US Tax Implications: Even if you’re living abroad, maintaining a US bank account might trigger US tax obligations. Consult with a tax professional to understand how your non-resident status and US bank account impact your tax situation.

• Accessing Your Account from Abroad: Consider how you’ll access your account from your new location. Will you rely on online banking? Are there transaction fees for international transfers or using your debit card abroad? Ensure the bank’s online platform is user-friendly and secure, and that you can easily manage your account from overseas.

• International Wire Transfers: If you need to transfer money between your US account and a bank account in your new country, be aware of potential fees and exchange rates. Explore alternative transfer methods like Wise (formerly TransferWise) or Remitly, which often offer better exchange rates and lower fees.

• Security and Fraud Protection: As a non-resident, you might be more vulnerable to fraud. Make sure your bank offers robust security features, such as two-factor authentication and fraud alerts. Keep your contact information updated so the bank can reach you immediately if they detect any suspicious activity.

Ultimately, the decision to keep your US bank account depends on your individual circumstances and international financial needs. Ask yourself these questions:

• Will you regularly receive income in US dollars? (e.g., from investments, royalties, or freelance work)
• Do you have ongoing financial obligations in the US? (e.g., mortgage payments, student loans)
• Do you frequently travel back to the US?
• Do you need a US-based account for online transactions or subscriptions?

If you answered yes to most of these questions, maintaining your US bank account might be worthwhile. However, if the complexities and potential costs outweigh the benefits, exploring alternatives like opening a bank account in your new country or using international banking services might be a more practical solution.

Before you hop on that plane, take the time to thoroughly research your options, contact your bank, and assess your international financial needs. A little planning can save you a lot of headaches down the road. Good luck with your move!