Best Banks for Living Abroad: Top Picks for Expats

Essential Expat Tools

These are the tools I personally use and recommend for anyone making the move abroad:

• Wise — Send and receive money internationally with real exchange rates. I use Wise for paying rent and converting USD. Get Wise here.
• SafetyWing — Affordable travel medical insurance for nomads and expats, month-to-month. Get SafetyWing here.
• NordVPN — Essential for US streaming access, secure banking on public WiFi, and data protection abroad. Get NordVPN here.
• Taxes for Expats — CPA-prepared US tax returns for Americans living abroad. Avoid costly mistakes with an expert who knows expat tax rules. File with Taxes for Expats.
• MATK Toolkit — My free resource hub: checklists, visa guides, cost comparisons for Americans moving abroad. Get the free Toolkit.

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Why trust this guide? When I write about international banking, I’m writing from experience — I funded my own move abroad by selling my house, my car (to CarMax), and my belongings on Facebook Marketplace and at garage sales. Banking across borders was something I had to figure out the hard way.

One of the first things Americans realize when they move abroad is that their US bank is quietly bleeding them dry.

ATM fees. Foreign transaction fees. Poor exchange rates. It adds up fast — sometimes hundreds of dollars a month if you’re not paying attention.

That’s why finding the best banks for living abroad should be one of your first priorities before you move.

The good news: there are banks and fintech services built specifically for people living internationally, and switching is easier than you think.

This guide breaks down the best banks for living abroad as an American — what to look for, what to avoid, and the exact accounts I recommend based on where you’re headed.

What to Look for in the Best Banks for Living Abroad

Before we get into specific picks, here’s what actually matters when you’re banking internationally:

• No foreign transaction fees — these run 1–3% on every purchase in a foreign currency and add up shockingly fast
• Free or reimbursed ATM withdrawals — withdrawing cash abroad with the wrong card can cost $5–10 per transaction
• Multi-currency support — the ability to hold, send, and receive money in local currencies without converting at bad rates
• International wire transfers — you’ll need to move money between your US accounts and local accounts regularly
• Strong mobile app — you’re managing everything remotely, so the app needs to actually work
• 24/7 customer service — when something goes wrong at 2am in a different time zone, you need support

Best Banks for Americans Living Abroad (2026)

1. Wise (Best Overall for Expats)

If you only open one account before moving abroad, make it Wise (formerly TransferWise).

Wise gives you real mid-market exchange rates — the same rate you see on Google — with transparent, low fees. No markups, no hidden costs.

With Wise you get a multi-currency account that holds 40+ currencies, a debit card that works globally, and the ability to send and receive money internationally at rates far better than any traditional US bank.

You also get local bank details in the US, UK, EU, and Australia — meaning people can pay you as if you have a local account in those countries.

Best for: Freelancers, remote workers, and anyone receiving income from multiple countries

2. Charles Schwab Bank (Best US Bank for Abroad)

Charles Schwab’s High Yield Investor Checking Account is the gold standard for US expats who want to keep a US bank account while living overseas. The key feature: unlimited ATM fee reimbursements worldwide.

You can pull cash out of any ATM on the planet and Schwab reimburses both their fee and the local ATM’s surcharge at the end of the month.

There’s no monthly fee, no minimum balance, no foreign transaction fees, and it comes with a Visa debit card.

You also need a Schwab brokerage account to open it, but that’s free and has no minimums either.

Best for: Long-term expats who want a solid US base account with global ATM access

3. Revolut (Best for Multi-Currency Spending)

Revolut is a UK-founded fintech that’s expanded to the US and offers one of the most feature-rich accounts for people who travel and live internationally.

The free plan gives you currency exchange at interbank rates up to a monthly limit, a virtual card, and basic international features.

The paid tiers unlock unlimited currency exchange, travel insurance, and more.

One caveat: Revolut isn’t a full bank in the US yet, so don’t use it as your only account. But as a spending card for day-to-day purchases abroad, it’s excellent.

Best for: Expats who make frequent purchases in multiple currencies and want a streamlined spending card

4. HSBC Expat (Best Traditional Bank for Expats)

If you want a traditional bank with full expat banking services — international accounts, multi-currency options, wealth management, and a global branch network — HSBC Expat is the premier option.

They’ve built their offering specifically around people who live internationally.

The downside: HSBC Expat has minimum balance requirements that make it more suited to higher earners.

You’ll typically need $75,000–$100,000 in deposits or investments to qualify for their best tiers.

But if you meet that threshold, the service is comprehensive.

Best for: Higher-income expats who want traditional banking with global reach

5. N26 (Best for Europe-Based Expats)

If you’re moving to a European country that uses the euro, N26 is worth looking at.

It’s a German digital bank with a clean interface, no monthly fees on the basic plan, and wide acceptance across the EU.

As a US citizen you’ll need to be a European resident to open an account, but once you establish residency in a participating country it’s straightforward.

Best for: Americans who have established residency in the EU and want a local euro account

Accounts to Avoid (or Use Carefully)

When searching for the best banks for living abroad, not every bank is expat-friendly, even if they say they are. Watch out for:

• Regular US checking accounts — most charge 2–3% foreign transaction fees and $5+ ATM fees internationally. Bank of America, Chase, Wells Fargo — unless you’re on a premium tier, these will cost you
• PayPal — convenient but terrible exchange rates. They mark up currency conversion by 2.5–4%
• Western Union / MoneyGram — fine for one-off large transfers, but expensive for regular use compared to Wise

How to Set Up Your Banking Before You Move

The smartest approach for the best banks for living abroad is a two-account system: keep a US account for receiving income, paying US bills, and maintaining credit history.

Open an expat-friendly account like Wise or Schwab for international spending and cash access.

Here’s the setup order that works best:

1. Open a Wise account now — even before you leave. Get the debit card, fund it, and get familiar with the interface
2. Open a Schwab account — link it to your existing US accounts. This is your ATM backup card
3. Keep one US bank account — for direct deposit, paying US bills, and emergency access
4. Open a local account after arrival — most countries let you open a bank account once you have a local address. This is important for paying rent, utilities, and anything that requires a local account

Opening a Local Bank Account Abroad

Once you’ve set up the best banks for living abroad and you’re on the ground, opening a local account is usually straightforward.

You’ll typically need your passport, proof of address (even a utility bill or rental contract), and sometimes a tax ID or residency document.

Requirements vary by country.

For most expats, Wise fills this gap in the short term since it gives you local account details in multiple currencies.

For true local integration — and often required for things like paying rent or receiving a local salary — you’ll want a proper local account within your first few months.

The Reality of Banking as an American Abroad: FATCA and the Address Problem

Most Americans don’t realize how significantly US law shapes their banking options abroad until they’re mid-move. FATCA (the Foreign Account Tax Compliance Act) requires foreign financial institutions to report US account holders to the IRS, which means many local banks will ask directly whether you’re a US citizen or tax resident when you try to open an account. Some refuse US citizens outright to avoid FATCA compliance overhead.

On the US side, the problem runs in the other direction. Many traditional US banks — Chase, Bank of America, Wells Fargo — quietly close accounts when they detect a foreign address update or foreign IP login pattern. This isn’t guaranteed, but it happens frequently enough that expats routinely report having accounts shut down with 30-60 days notice, often right before a critical international wire transfer.

The “foreign address” problem is a real operational risk. If you update your mailing address on your Chase account to a Spanish or Portuguese address, you may trigger an account review. Some banks’ terms of service technically limit accounts to US residents. The safest approach: maintain a US mailing address — a trusted family member or a mail forwarding service — for your traditional US accounts while you transition.

The VPN and IP detection issue is a secondary concern. Some US banks flag logins from foreign IP addresses as potential fraud and lock accounts. NordVPN solves this by letting you connect via a US IP address for banking sessions. This is standard practice for American expats and not fraudulent — you’re simply maintaining US banking access from abroad.

Best US Banks to Keep Open Before You Move Abroad

Not all US banks treat expats equally. These are the accounts worth maintaining specifically because they work well internationally.

Charles Schwab Investor Checking (Best for No ATM Fees Worldwide)

Schwab’s High Yield Investor Checking reimburses all ATM fees worldwide, including both Schwab’s fee and the local ATM surcharge, credited at month’s end. No monthly fee, no foreign transaction fees, no minimum balance. You need a linked Schwab brokerage account (also free, no minimums). This is the gold standard for expat ATM access. Schwab is one of the more expat-tolerant US banks and generally does not close accounts due to foreign addresses when kept active.

Capital One 360 (Best for No Foreign Transaction Fees)

Capital One 360 checking charges no foreign transaction fees on debit purchases, making it useful for day-to-day local-currency spending. ATM fees aren’t reimbursed globally the way Schwab does, but within the Capital One ATM network there are no surcharges. Capital One is generally more tolerant of foreign addresses than traditional brick-and-mortar banks, making it a reasonable US account to maintain alongside Schwab.

State Department Federal Credit Union (SDFCU)

Originally created for US government employees posted abroad, SDFCU is now open to many Americans through various membership affiliations. Their accounts are specifically designed with international use in mind: international wires are streamlined, foreign addresses are understood rather than flagged, and their customer service understands expat situations. Worth researching if you plan a multi-year stay abroad and want a US banking partner that genuinely understands your context.

How to Handle Two-Factor Authentication (2FA) Overseas

2FA is one of the most overlooked banking challenges for American expats. Many US banks send verification codes via SMS to your US phone number. When you swap to a local SIM, those codes stop arriving — and you can lock yourself out of accounts.

The solution: Get a Google Voice number before you leave the US (free, requires a US number to set up during sign-up). Google Voice forwards texts and calls to any device via WiFi or data, regardless of your location or SIM. For additional security and reliability, switch accounts to an authenticator app: Google Authenticator or Authy. Authy is preferable because it backs up to the cloud and can be restored if you lose a phone — Google Authenticator does not.

The practical sequence: set up Google Voice while still in the US, update your US banking accounts to use your Google Voice number as the 2FA phone, then switch to Authy for any account that offers authenticator app support. This protects you when you swap to a local SIM abroad. Do this before you travel — you cannot complete Google Voice setup without a US phone to verify.

How to Set Up Your Banking Stack Before Moving Abroad

The optimal sequence for an American moving abroad — tested by Kim and hundreds of MATK readers:

Step 1: Open a Wise account now, even months before your move. Get the physical debit card, fund it, and do a test transfer to a US account. Open Revolut as your backup multi-currency card.

Step 2: Verify or open Charles Schwab Investor Checking. Confirm your current US bank’s terms allow continued account use with a foreign address. Arrange a US mail forwarding service or use a family member’s address for banking correspondence.

Step 3: Set up automatic bill payments from your US accounts for all recurring US obligations before you move — loans, subscriptions, estimated tax payments. Disconnecting from these manually while settling into a new country adds unnecessary stress.

Step 4 (30-60 days after arrival): Open a local bank account once you have a local address. For Spain: BBVA, Santander, or CaixaBank work well for new residents. Wise functions as a bridge account during this waiting period, providing EUR account details without requiring full residency documentation.

Step 5 (first 12 months): Keep all US accounts active by using them at least periodically. Dormant accounts can be flagged or closed. Gradually shift banking weight to local accounts as you establish roots, while keeping Schwab as your global ATM fallback.

See also: our budget guide for moving abroad for the full financial planning picture, and our Spain DNV income requirements guide for what banking documentation you’ll need for visa applications.

For tax implications of your accounts abroad, see our guide on US taxes while living abroad. If you’re also planning for international health insurance, SafetyWing is the coverage Kim uses and recommends for month-to-month expat coverage.

FAQs: Best Banks for Living Abroad

Can I keep my US bank account when living abroad?

Yes — and you should. Your US bank account maintains your credit history, lets you receive US income, and keeps you connected to the US financial system.

Just add an expat-friendly account alongside it rather than replacing it.

Do I need to report foreign bank accounts to the IRS?

If you have over $10,000 total in foreign financial accounts at any point during the year, you’re required to file an FBAR (FinCEN Form 114) annually.

This is separate from your tax return and carries serious penalties if missed.

Wise accounts typically qualify as foreign accounts. Consult a tax professional who specializes in expat taxes — and check out our guide on US taxes when living abroad.

Which bank has the best exchange rates?

Wise consistently offers the best exchange rates among consumer-facing services because they use the actual mid-market rate with a small transparent fee.

Traditional banks and services like PayPal mark up the exchange rate significantly, which is how they make money — you just don’t see it as a fee.

Is Wise safe to use?

Yes. Wise is regulated as a money services business in the US (FinCEN), an Electronic Money Institution in the EU, and is authorized by the FCA in the UK.

They’re not FDIC-insured in the same way a US bank is, but your funds are held in safeguarded accounts separate from Wise’s own money.

For day-to-day expat spending, it’s very safe and used by millions of people internationally.

Bottom Line: Best Banks for Expats

For most Americans moving abroad, the winning combination is Wise + Charles Schwab. Wise for currency conversion and day-to-day spending. Schwab for ATM cash withdrawals and keeping a solid US account.

Add a local bank account once you’ve established residency in your new country.

The worst thing you can do is move abroad relying on a standard US bank account.

The fees are real, they add up fast, and switching is genuinely easy. Choosing the best banks for living abroad before you land will save you money from day one.