MOOD Travel Abroad’s Expat Financial Tool Kit: Expat Banking 101

You’ve created your vision, researched your visa, and downsized your life. Now it’s time to tackle one of the most critical elements of a successful move abroad: your money.

Setting up your finances for an international life can feel complicated, but it doesn’t have to be. This guide is your step-by-step plan to creating a seamless, stress-free financial system that works for you, no matter where you are in the world.

Part 1: Your Financial Foundation (Before You Leave the US)

Proper preparation in the US is the key to avoiding headaches later. Your goal is to create a banking setup that is flexible, low-cost, and accessible from anywhere.

1. Choose an Expat-Friendly Bank

Not all banks are created equal when it comes to international living. Your local brick-and-mortar bank will likely charge hefty fees. You need a bank built for a global citizen.

Look for these two non-negotiable features:

• No Foreign Transaction Fees: This allows you to use your debit/credit card abroad without being charged an extra 1-3% on every single purchase.
• Worldwide ATM Fee Reimbursement: This is the holy grail. This feature means you can walk up to almost any ATM in the world, withdraw local currency, and your bank will refund the fees charged by the local ATM and any fees of its own.

Top Recommendations for Expats:

• Charles Schwab Bank: The gold standard for expats. Their High-Yield Investor Checking account has no monthly fees, no account minimums, and offers unlimited ATM fee rebates worldwide.
• Capital One 360: Their 360 Checking account has no foreign transaction fees and provides access to a large fee-free ATM network.

2. Notify Your Current Banks (and then Consolidate)

Inform all your financial institutions of your plans to move abroad. Provide them with your departure date and new contact information. This prevents them from flagging your overseas transactions as fraud and freezing your accounts.

After that, simplify. Close any accounts you no longer need. Managing multiple bank accounts from another country is a hassle you don’t need.

3. Go Completely Paperless

Ensure every single statement, notice, and communication from your banks, credit cards, and investment accounts is switched to email or paperless delivery. International mail is slow, unreliable, and you don’t want sensitive financial documents getting lost.

Part 2: Opening a Local Bank Account

While your US-based expat bank is great for accessing your US funds, you will absolutely need a local bank account in your new country for day-to-day life.

Why you need a local account:

• Paying rent and local bills (utilities, phone, internet).
• Receiving payments if you do any local work.
• Easier and cheaper local transactions.

How to open an account: The required documents vary by country, but you can generally expect to need:

• Your Passport
• Your Visa or Residency Permit
• Proof of Address in the new country (like a utility bill or rental agreement)
• Sometimes, a letter of reference or an initial deposit.

Pro-Tip: Before you move, research “expat-friendly banking in [Your City/Country]” to find banks that have English-speaking staff and streamlined processes for foreigners.

Part 3: Moving Money Across Borders

Now you have two bank accounts: one in the US and one in your new country. How do you efficiently move money between them?

Do NOT use a traditional wire transfer from your bank. It’s the slowest and most expensive option. Banks often hide their fees in poor exchange rates, meaning you get less of your own money.

The Modern Solution: Online Money Transfer Services Think of these services as a bridge between banking systems. Instead of one long, slow, expensive transfer, they use local bank accounts in both countries to make the process faster, cheaper, and more transparent.

Top Recommendations:

• Wise (formerly TransferWise): The most popular choice for expats. Wise is known for its transparency, using the real mid-market exchange rate (the one you see on Google) and charging a very small, clear fee.
• Remitly or Xoom (a PayPal service): Also excellent options that are fast and reliable. It’s worth comparing rates between services for each transfer.

Setting up a transfer takes minutes online or in their app and can save you hundreds of dollars a year.

Part 4: Your Wallet Abroad: Credit & Debit Cards

• Credit Cards: Your primary credit card abroad should have no foreign transaction fees. Cards like the Chase Sapphire Preferred or Capital One Venture are popular choices because they also offer great travel rewards. Always choose to be charged in the local currency when given the option. This ensures you get the best exchange rate from your credit card company, not the local merchant.
• Debit Cards: Use your fee-reimbursing debit card (like Charles Schwab) to pull out local cash from ATMs. Don’t use it for everyday purchases; save it for getting cash.

By setting up this system—an expat-friendly US bank, a local bank account, a money transfer service, and no-fee credit cards—you create a financial toolkit that makes managing your money abroad simple and secure. You’re ready to fund your next best life.