Top 9 Checking Accounts for US Expats Living Abroad

For U.S. citizens living abroad, referred to as expatriates or expats, maintaining checking and other bank accounts in the United States provides several advantages. These include the convenience of paying bills or making payments in the country and the ease of direct deposits for employment or Social Security payments.

However, using these accounts while living in a foreign country can be expensive due to bank fees. For example, ATM transaction fees can be high—anywhere from $1 to $5 per transaction. Also, without a strong mobile platform and 24-hour help centers, accessing your funds can be challenging when overseas.

Below are the nine top checking accounts for expats with proven track records. Some of the banks included have a significant physical presence abroad, such as HSBC and Citi, while others, like Ally Bank or Capital One, operate predominately as online entities. All the banks listed have been vetted with expats and travelers in mind. All information has been updated as of Aug. 02, 2024.

Key Takeaways

• U.S. expatriates looking for the best checking account should consider whether they prefer a bank with a physical location, an online-only bank, or one that offers the best of both.
• Also, consider foreign transaction fees, which reduce your balance each time you make an ATM withdrawal or debit card purchase.
• Some banks and credit unions will offer reimbursement of foreign transaction fees.
• Your checking account may require a minimum monthly balance or other requirements to get reimbursed for fees and other benefits.
• For many of these banks, you must maintain a valid U.S. mailing address and phone number while living overseas.

Capital One 360

Expats can use the Capital One 360 interest-bearing checking solution offered by Capital One Financial Corp. (COF) without paying maintenance, foreign transaction, or ATM fees. Account owners can set up direct deposits for work or Social Security payments. In addition, Capital One 360 products charge no additional fees when you use your debit card abroad.

Be aware that if you plan on making mobile deposits of checks while living abroad, you might face restrictions that prevent you from doing so depending on the financial institution you use. For example, while you can deposit a check from anywhere in the U.S. and U.S. territories using Capital One’s mobile deposit app, certain items are not eligible for this service, including checks that are not payable in U.S. currency or not drawn on a financial institution located in the U.S.

Citibank CitiGold

The Citibank ATM Network is available in over 20 countries, so accessing an ATM may not be a problem. A subsidiary of Citigroup Inc. (C), Citibank offers expats the convenience of handling their financial affairs in offices worldwide and online. With the Citi International Personal Account Package and the Citigold interest checking account, customers receive wealth management and financial planning services in addition to banking services.

Customers who maintain a minimum combined average monthly balance of $200,000 in eligible linked banking, investment, and retirement accounts get their monthly service fee waived. The account offers fee waivers on most bank services and reimbursement of fees charged by other banks for using non-Citi ATMs. Depending on your Citigold account type, wire transfer fees are either waived or reduced.

HSBC Premier

The international footprint of HSBC Holdings PLC (HSBC) provides expats an unparalleled physical presence with operations in 62 countries and territories. HSBC Premier checking offers a variety of features, including no annual fees (need to meet certain criteria), no foreign transaction fees, and Premier status for up to four members of your family.

To qualify for the Premier account, customers must maintain a minimum balance of $100,000 in linked accounts with the bank or have monthly recurring third-party direct deposits of at least $5,000 or an HSBC U.S. residential mortgage loan with an original loan amount of at least $500,000.

HSBC Bank is known for its customer service and will help you open an account overseas, even before you move. In addition, you can move your funds via its mobile app between any of your HSBC accounts, which can come in handy if you have multiple accounts across multiple countries.

Alliant Credit Union

The high-interest rate checking account at Alliant Credit Union pays an annual percentage yield (APY) of 0.25% with no minimum balance requirement and no monthly service fees. Unlike many banks, credit unions often pass processing charges on transactions through to customers without markups.

As a result, fees charged to expats on foreign ATM withdrawals and debit card purchases are 1% of the total transaction. However, Alliant does offer an ATM fee rebate of up to $20 per month.

Important

Some financial institutions charge foreign transaction fees to customers who make withdrawals from foreign ATMs or make purchases in a foreign currency using an electronic payment card. These fees are typically 1% to 3% of the transaction’s value.

Schwab Bank

The Schwab Bank Investor Checking account offers no monthly service fees, but you must also open a Schwab One Brokerage account and link it to the checking. However, you do not need to fund the brokerage account, nor are there minimum balance or trading requirements, resulting in no fees to open or maintain either account.

The Schwab Bank Investor Checking account does not charge foreign transaction fees, offering unlimited rebates of ATM fees for cash withdrawals worldwide if you use the Schwab Bank Visa Platinum Debit Card.

Ally Bank

While it only offers online banking, Ally Bank has a robust online interface for expats with free bill paying, no maintenance fees, and no monthly maintenance minimums. Ally Bank charges a standard foreign transaction fee of up to 1% of the transaction amount for ATM withdrawals and debit card transactions. There may be an additional charge if you use a non-Allpoint ATM overseas. Note that Ally Bank requires a working US mobile number to access your account.

Fidelity Investments

For expats holding investment accounts with Fidelity Investments, the checking account offered is called the Cash Management Account. The checking account has no fees or minimums to open the account and offers free checkwriting.

Account holders can use the debit card to withdraw cash from over one million ATMs worldwide. For each foreign transaction, there is a 1% foreign transaction fee for non-U.S. dollar transactions, which may apply whether or not there is a currency conversion. The account also offers travel and emergency assistance, accident insurance, and damage waivers for car rentals.

Navy Federal Credit Union

For active and retired members of the military who banked with the Navy Federal Credit Union (NFCU) while living stateside, the credit union also adds value for members living abroad. You won’t be charged ATM access fees when using International Navy Federal and CO-OP ATMs.

However, some CO-OP ATMs and non-NFCU ATMs may charge an additional service fee. You’ll also get charged a $1 fee by Navy Federal for all transactions at non-Navy Federal or non-CO-OP network ATMs when using a Navy Federal Visa debit card or CUCARD.

The credit union pays a rebate of up to $10 per statement period (for a maximum of $120 annually) to cover ATM charges for direct deposit accounts. The Flagship Checking account pays tiered dividend rates with a maximum APY of 0.45% for balances over $25,000. However, you must maintain an average daily balance of $1,500 or more to avoid the $10 monthly service fee and qualify for the dividends.

State Department Federal Credit Union

If you or an immediate family member is employed by the U.S. Department of State, this federal credit union has a lot to offer its members. You can open a Basic checking account (no minimum required), an Advantage account with a $2,000 balance, or a Privilege account with a $25,000 balance. All accounts give members access to nearly 30,000 free ATMs. Members can utilize the credit union’s robust online banking system, plus its 24-hour call center.

The credit union offers Advantage account holders a monthly reimbursement of up to $15 for ATM foreign transaction fees and $25 for Privilege account holders. The Advantage checking account pays dividend rates with an APY of 0.75%, and the Privilege checking account pays an APY of 0.80%.

Are There Foreign Transaction Fees for U.S. Expatriates Living Abroad?

Some banks charge no foreign transaction fees, while others might charge 1% of the transaction amount. If your bank charges a fee, check to see if they offer reimbursement, such as $10 or $15 monthly.

What Should U.S. Expatriates Look for in a Checking Account When Living Abroad?

For U.S. expatriates searching for the best checking account while living abroad, consider whether you prefer a bank with a physical location or an online bank. Also, consider whether you want to earn interest on your balances and if the bank requires a minimum balance to avoid monthly service fees and qualify for interest. Research whether your bank charges foreign transaction fees for ATM withdrawals and debit card transactions and whether they offer fee reimbursement.

Can a U.S. Citizen Have A U.S. Account While Living Abroad?

Yes, but the bank may require that you maintain a valid U.S. mailing address and phone number while living overseas.

The Bottom Line

When searching for the best checking account while living abroad, U.S. expatriates should consider the banking services that meet your needs. Some may prefer a bank with a physical location, while others may prefer an online bank or some combination of both.

Consider whether you want to get paid interest or dividends on your balances and whether you can maintain the minimum balance requirements to avoid monthly service fees and qualify for dividends. Many banks charge foreign transaction fees when making ATM withdrawals or using your debit card. Assess how many monthly transactions you typically perform and whether the bank offers enough reimbursement to adequately cover the fees.

Read the original article on Investopedia.