Best International Banks for Expats

by Spotahome

There was a time when it didn’t make much difference which bank you had a current account with. If you had plans of working or studying abroad any bank that offered the most over-draft would have been your first choice! Nowadays, if you relocate overseas, it is not long before you encounter restrictions when it comes to managing your money and feel the limitations of having a single currency, onshore bank account.  Even opening a bank account in the country that you are in does not always offer the flexibility that is required to manage money in a cost effective, efficient way.

This is when finding the best international (offshore) bank account becomes an interesting and important prospect.  Offshore banking is far more complex than having a basic onshore account. You will be dealing with multiple currencies in one account and will have many promotional offers options and things like insurance to take into consideration, so it is really important to know what your needs are.

What services do you need from your International Bank?

Answering the following 3 questions will help you to determine what services you will require:

1. What is the minimum account balance that I can maintain?

The higher your balance, the higher the relationship balance will also be. Simply put, the more you have in your account, the more access you will have to potential benefits. Check to see the criteria banks have in terms of what can be included other than cash, like outstanding mortgage debt, savings and investments.

2. Will I require an account with multiple currencies?

If you earn money in one currency, but make transactions in another one, it may be worthwhile to have an international account so that you can move money between currencies cost effectively.

3. Do I require assistance in managing my wealth?

This is a common incentive used to attract more business so be aware that this is not an independent service but is one that is tied to the services the bank provides.

The more that you are able to hold in terms of a deposit, the more benefits you will be offered and the monthly fee incurred will be lower. You also need to consider if it is better to have your money in one large sum (sometimes up to £50,000) or to spread it out in different banks depending on the returns they offer, versus the monthly fees you will pay on your account.

Something for everyone!

Luckily, there are international banking options that cater to a variety of needs. Here are examples of international banks:

Standard Bank

The Optimim Account  is an international bank account for expats who:

  • Can maintain a minimum balance of £4000 (or equivalent)
  • Require an account with either a dollar (AU and US), sterling or euro account
  • Who are regularly in international locations
  • Require a VISA card for their payments
  • Study internationally

Note: There are no country restrictions or fees and you can apply on the phone or online.

NatWest

The NatWest Select Account is for expats who:

  • Want a no-fee offshore account
  • Do not require investments or savings
  • Make international payments regularly
  • Want telephone and mobile and online banking 24/7
  • Earn over £40,000/year

Note: There is no minimum balance (but a minimum of £40,000 earnings have to be deposited into the account) and you have to have been in the UK for over 12 months. There are no monthly fees but there are some transaction and transaction fees and there may be some country restrictions. Applications are sent through the post and email and phone support is available.

Lloyds Bank

The Lloyds International Bank Account is for expats who:

  • Don’t need a lot of savings and investments
  • Earn over £50,000/year
  • Use many currencies
  • Want phone and internet banking options

Note: You can apply online or by phone. Local offshore account laws and regulations apply for country restrictions. There is a monthly fee of £7.50 and you need earnings of £50,000 deposited into the account (or make an initial deposit of £25, 000).

HSBC

The HSBC Expat Current Account is for expats who:

  • Like savings in multiple currencies
  • Already bank with HSBC
  • Move internationally often
  • Live outside the UK
  • Want phone banking support 24/7

Note: You have to maintain a £5000 balance and already have £60,000 as saving or investments with HSBC. There are no country restrictions, or monthly fees but there may be transaction and transfer fees. You can apply online or by phone to open the account.

Charles Schwab

The High Yield Investor Checking Account is for expats who:

  • Prefer an account without a minimum balance or monthly fee
  • Want to avoid foreign transaction fees
  • Frequently use ATMs and would like to be reimbursed on ATM fees

Note: Compared to other banks, it's quite difficult to find Charles Schwab branches. They'll also do a 'hard inquiry' on your credit when you apply. That said, Schwab is probably the best bank for using ATMs abroad.

Capital One 360

This account is for expats who:

  • Frequently make purchases abroad or order online from other countries
  • Want to avoid foreign transaction fees
  • Are looking for low fees and high interest rates

Note: Capital One won't charge you for ATM fees, but sometimes the ATM's bank will. You won't be reimbursed for these fees. Still, you don't have to pay monthly fees and this account is very popular.

Citibank

This account is for expats who:

  • Wire/transfer money abroad on a regular basis
  • Access their bank accounts online or on mobile

Note: International transfers are free, as long as both the sender and recipient are using Citibank. If either party does not use Citibank, transfer fees can be as high as €35. You also need to have at least $500 in your account to avoid the monthly fee.

This information can help you make an educated choice, but ultimately the decision will be yours!

Do you have any hot tips for a bank account?  Share them in the comments!