Guide to International Banking

What Is International Banking?

What Is the Point of Having an International Bank Account?

What Are the Pros and Cons of International Banking

Pros

• Have similar features as domestic bank accounts. Many international banks offer account features that you’ll find from a U.S.-based account, like tap to pay, mobile app accessibility, and more.
• Supports multiple currencies. If you regularly get deposits in different currencies, an international bank account can accept the transfers with minimal delays and at an exchange rate that’s more in your favor. Some accounts even hold the currency type that the money was transferred under. 
• Fewer international fees. By using banking products that are designed to be used in other countries, you might incur fewer fees for transactions compared to a U.S.-only account. For example, international credit cards meant for use internationally might have no foreign transaction fees.

Cons

• Need for a U.S. physical address. To open an international bank account with a U.S.-based bank that operates overseas, you typically need a physical mailing address in the United States. This might be challenging for those who are permanently living abroad.
• Some international accounts are restrictive. Certain international banks reserve the more desirable features of their international banking solutions to business clients only. For example, the ability to retain multiple currencies in the account. Additionally, some international banking accounts require a high minimum monthly balance which can be difficult to maintain.
• It can take a while to open. Unlike opening a domestic bank account that can be done on the same day, opening an international account abroad might take multiple days to verify your information.

How Does Opening an International Bank Account Work?

• Be at least 18 years of age
• Have a valid form of identification (e.g., passport or national ID)
• Have proof of address, like a utility bill
• Provide employment and income documents

Which U.S. Banks Can Be Used Internationally?

Factors to Consider When Choosing an International Bank

• Countries it accepts new accounts from 
• Eligibility criteria
• Minimum balance requirements
• Maintenance fees
• Branch locations
• ATM locations and/or networks
• Fees, like transaction, ATM, wire transfer, or lost card fees
• Reimbursement features (e.g., for out-of-network ATM withdrawals)
• Currency exchange rates

The Takeaway