Banking options for US citizen living abroad
Posted by Additional-Ebb-2050@reddit | expats | View on Reddit | 32 comments
US citizen moving abroad (Spain) by the end of October 2025. I will be working from Spain so I expect to fully fund my life / expenses using my salary money. I will be opening a checking account as soon as possible once I get there.
Here in the US, I have already updated the physical address of my checking and multiple brokerage accounts. I am using my brother’s address.
I have 2 “international” credit cards and 4 brokerage accounts (Vanguard, E*Trade, IBK, and Fidelity) with different brokers. However I only have one checking account (Bank of America).
Should I open a second checking account just in case? If so which bank / institution you recommend? How people have done it? I’ve read on reddit that banks have closed accounts when they learn people are living abroad.
I appreciate any suggestions / feedback.
BAFUdaGreat@reddit
Schwab Investor Checking. Don;t use the investor part, just use the checking part. Best financial decision I've made in decades
D1ces@reddit
I have Schwab checking and preparing for a move as well. I plan to pair the Schwab checking with Wise for currency conversion + a local bank like Monzo, but I still plan to use Schwab for cash withdrawals considering the favorable atm refunds.
Additional-Ebb-2050@reddit (OP)
That sounds interesting. Could you explain how would you connect Schawb checking with wise? Is this because Schwab doesn’t support internal wires?
D1ces@reddit
It's really simple. Wise is free to setup and I was able to connect it to Schwab (or any other major bank) with a simple logon (they use the Plaid service for that). You can also manually connect it using ACH with routing/account numbers.
The reason to use something like Wise isn't because you wouldn't be able to wire funds with Schwab, but because wiring has extra fees, can be risky, inconvenient, and Schwab is specifically US based. Wise handles the conversion at a reasonable rate and sets up currency specific account numbers for the currency you convert to. Local banks/people may require those local account numbers to do business in a way a US bank like Schwab can't do directly.
I could probably get away with just using Wise for most things once I move, I've just read that Monzo is a nice addition for spending within the UK. The nice thing is that Wise can hold funds in USD, GBP, and EUR so I'll have options wherever I go.
directorbman@reddit
Been using wise for years while living abroad and transfers to my U.S bank are really cheap. Like dirt cheap.
Additional-Ebb-2050@reddit (OP)
I see. This is insightful, thank you. One more question, would you be using your US address for your wise account? I imagine the main use case will be to move funds from Schwab to Wise (USD) and then Wise to some international bank account (EUR or other currency). Is this correct?
D1ces@reddit
Wise can hold your funds in multiple currencies at once and you can pay directly from it. The only reason to use another bank account after is if for some reason a local retailer/business requires it, or it has some convenience Wise doesn't offer. That's why I'm planning on using it primarily for currency conversion and I'll find another free local bank, but I don't think that's required. Wise lets you setup the account with your current US address, many international banks require you to have a local address before they'll open your account.
I'll probably update Wise with a new address once I'm moved but I don't think it's critical. My main workflow will be: Schwab monthly recurring transfer to Wise > Landlords/utilities debit directly from my Wise account monthly. I'll transfer spending money to a local bank that makes it easier to pay at businesses, send money directly to locals, but you might be able to just use Wise.
I've found it helpful to use ChatGPT to prepare for the move. I gave it as much info about my situation as I could and it helped me figure out the most cost effective workflow for my finances.
katmndoo@reddit
Second this. That said, I've moved some investments to Schwab. I figure the fee-less checking is a loss leader, and I'd like them to continue offering it, so might as well let it look like I'm using their other services.
Additional-Ebb-2050@reddit (OP)
If I go down this route I guess I still have to use my brother’s address in the US right? I shouldn’t use my future abroad address.
BAFUdaGreat@reddit
Well I can't answer that *legally* but yes, that might be a good idea. Although if they see you're using their debit card exclusively in the EU they might be a bit inquisitive. You can just say you're traveling though.
Additional-Ebb-2050@reddit (OP)
Hehe yeah. I think I was trying to make the point that maybe only for banking SDFCU is a better option because I can just put my future EU address there.
Also given that I plan to use my EU salary for living, the ATM withdrawals are a bit less useful to me for now.
BAFUdaGreat@reddit
Schwab clearly allows expatriates to use their non US addresses, see the link. When I move permanently they'll be the only ones I use.
Additional-Ebb-2050@reddit (OP)
I will take a look at it. Thanks!
Additional-Ebb-2050@reddit (OP)
Thanks a lot for the feedback. I will open an SDFCU checking account and a Schwab Investor Checking account!
wndrgrl555@reddit
State Department Federal Credit Union, SDFCU.org.
katmndoo@reddit
Don't let it go inactive though. They'll start charging 10/month or so.
wndrgrl555@reddit
That’s an easy problem to solve. I can just Wise a little bit of money in when I do my monthly bill pay run.
katmndoo@reddit
I have a monthly $10 ACH autopay from my other CU setup. Too lazy to go through the process of closing one or both of them.
mp85747@reddit
I'd second that and having 2 checking accounts in general, just in case. SDFCU also has a nice credit card - no foreign-transaction fees and 2% cashback across the board.
Regarding B of A specifically, up until recently, you could only log in with a VPN and even only particular servers! That's no longer the case, but who knows what can happen tomorrow...
Additional-Ebb-2050@reddit (OP)
When you say that’s not longer the case you mean that they don’t have the restriction anymore? I’ve been able to access the bank by using my phone when traveling abroad.
I just saw the SDFCU credit card and I think it’s a great deal given the requirements they have.
mp85747@reddit
Correct. There are no issues with accessing B of A now, but you never know what changes can be made in the future. That's why I think it's a prudent idea to have a back-up checking account and SDFCU is best if one lives abroad because there's no need to potentially have to fib about it and/or lie by omission.
However, you still must be able to receive 2FA codes via texts. E-mail option used to be available and that was great, but not anymore. That changed along with major changes to their website, which I despise, in comparison to the previous functionality and features, but pretty much all "improvement" results in enshittification, so it is what it is...
Additional-Ebb-2050@reddit (OP)
Yeah, I am with you on having a fallback. And it looks like SDFCU is one of the best options out there. I still plan to keep my US phone number so the 2FA to the phone is not a deal breaker for me.
gadgetvirtuoso@reddit
You want a Schwab checking account. Rebates all ATM fees, nor foreign transaction fees. In fact, I’d open two to have a spare just in case.
Additional-Ebb-2050@reddit (OP)
Two as in: Schwab checking account and SDFCU checking account?
gadgetvirtuoso@reddit
I have two Schwab accounts. I mostly just use the one but the second is helpful when I need to withdraw a bit extra.
Additional-Ebb-2050@reddit (OP)
May I ask how do you do that? Is it a special process after your open the first one?
gadgetvirtuoso@reddit
I just applied online for a second one. There wasn’t anything to it.
Bokbreath@reddit
you will need some sort of account for the IRS to pay tax refunds into. Unless you want to wait for a check in the mail. I personally use SDFCU. They require you to be a member of an affiliated organization, but ACA (American Citizens Abroad) is one such that you can join easily.
mp85747@reddit
He's still in the US, so there's no need to waste money on ACA.
Additional-Ebb-2050@reddit (OP)
Yes! I don’t need to enroll into ACA because I am still residing in the US.
a_library_socialist@reddit
Always hold multiple accounts just in case.
Wise is a good backup.
Additional-Ebb-2050@reddit (OP)
Yeah this makes sense! Thanks!