Keeping Your Money Secure While Living Abroad: A Successful International Banking Strategy
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In August 2020 during the middle of the Pandemic, I left the United States and moved to Turkey to be with my future wife. We got married in October and that was a bureaucratic odyssey in itself. I was likely the first American that a few of the local government agencies had ever met. Being fairly well-traveled, I felt more well-adapted than others jumping into a completely foreign country. Even though my wife is Turkish and had lived in Ankara for a long time, there were (and still are) some pretty crazy logistical steps to take.
One of the biggest pains of moving abroad is dealing with money. To read about some of our past struggles with banks, read our recent article on opening a bank account in Germany. With the difference in currencies, the fees charged by banks, and the various credit and debit card issues, withdrawing cash or using your card can quickly become a big expense. We have found that the best way to adapt to a new country is to have multiple bank accounts in different locations, both physical and online. It’s possible to use your home country account as your primary account, but as time moves on it’s much cheaper to have a primary bank account in the country in which you concurrently live and work.
A Local Bank Account Abroad
Regardless of your previous travel experience in your new home country, you’ll still always feel like you’re adapting to a new world. In order to make the process of adapting as smooth and painless as possible, we recommend that you open an account with a reputable local bank shortly after arriving. This will allow you to set up direct deposit and bill pay while paying transactions that require a local debit card. Though you might be able to survive for a while with only an international bank account at your disposal, some online bill pay services and point-of-sale machines will only accept local bank account credentials and cards, so setting up a local bank account is an inevitability that you should mark off the list quickly.
One of the main factors to consider when picking which local bank to open an account at is the English fluency of the staff at the bank branches, on customer support, and in the online banking service portal if you’re living in a non-English speaking country. Even if you’re lucky enough to befriend a local (or, in my case, marry a local), that person might not always be with you when a financial concern arises. Nothing is worse than having questions about where the money in your account went and not being able to discuss it easily with customer service.
You must also pay special attention to the documents required to open an account. This often includes a work visa or residency permit and a proof of address, as is the case in Germany. Gathering these documents may require a few trips to government offices, which we all know can take some time, so be sure to have enough money on-hand and in other international bank accounts to cover all your initial expenses after moving.
An Online Bank Account
Buying and converting in various currencies can become a complicated, stressful, and even expensive part of your life abroad. The markets are in constant fluctuation due to world events and keeping track can seem futile. One of the ways we’ve found to manage the madness is to open a completely online account from the likes of German neobank N26 or British financial technology company Revolut. For someone who travels often, these are some great options for banking.
We have written about N26 in the past and heralded the ease of dealing with them. Apart from being completely free from the burden of physical locations, they have turned the focus instead into creating an incredibly easy user experience. Banking takes place on a website or an app and debit cards with a transparent fee structure and the ability to use any ATM in the world. The biggest beneficiaries of this bank are EU citizens and residents, who are eligible for a variety of different plans. The company is also already open to customers in the United States and is opening to countries such as Brazil in the near future.
Revolut is a similar choice in online banking that may prove to be useful with users around the world. Revolut brands themselves as the world’s first “financial superapp” which will combine personal banking, business banking, and investments all in an online setting. Providing physical debit cards to combine with the easy-to-use app experience, they are now available to open accounts in 35 countries and growing. Their three-tiered account pricing system, ranging from free to $16.99 per month, includes various benefits such as travel medical insurance abroad and ease in dealing with cryptocurrencies. The fees are also transparent and well-documented. Dealing with an online bank is often far easier than the red-tape bureaucracy of a brick-and-mortar bank.
A Bank Account Back Home
We recommend keeping at least one bank account for your investments in your home country. This means that whatever happens abroad there’s still an account that serves as an anchor for you and your family. As currencies fluctuate with the events in the world market, it’s always crucial to have investment funds in a stable currency. For Americans moving abroad, we recommend a well-established financial services company like Charles Schwab. For Schwab accounts, they never charge fees for transfers of money to an account and there is no ATM fee anywhere for withdrawals in USD (United States Dollars), so it’s an ideal choice for Americans living and traveling around the world. Like some more technologically advanced banks, Schwab enables customers to open accounts online and perform almost all transactions online as well. They also have physical branches primarily in the United States if you are looking for a more traditional banking experience, so you can visit one to set up your account before leaving for your next destination.
Making It Work Across International and Local Bank Accounts
When it comes down to moving abroad, having multiple accounts will end up simplifying how you deal with your money. You can always treat each bank like you would a traditional checking and savings account package: move money from one to the other whenever you need it. Let’s say your direct deposit goes into your account in your country of residence abroad. You use some of the funds for rent, bills, and daily expenses. Then, you transfer some of the money to your online account. This online account then lets you exchange currencies easily, facilitating travel as well as opening thousands of free ATMs up to you. Meanwhile, you gradually treat the account in your home country like an investment account, adding whatever you can to your savings in the safety of your homeland.
Well, at least that’s what I ended up doing. My wife and I have a local account in Ankara at Halkbank, one of the banks owned by the Turkish Republic. There are ATMs everywhere in our city and the smartphone app is extremely quick, cheap, and easy to send money transfers. It’s how we make our big and small purchases on the ground. On the rare occasions that we haven’t found a Halkbank ATM, we’ve used our N26 card. Then, we have our investment account back in the United States that sits quietly for when we need it. After a few stints abroad and dealing with the constant stress of ATM fees, transaction fees, and the dread of losing my debit card, this system of having accounts is the most secure I’ve felt with my money.
Tell Your Story!
Have you had any painful experiences with banks both foreign and domestic while you were abroad? Have any further recommendations about maintaining your funds abroad? Know any reputable financial institutions from your country? Leave a comment on this post below. If you’d like to share your story about travel struggles and accomplishments, write it up and get it featured on our blog!
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Originally published at https://expatempire.com on February 17, 2021.
