For those moving abroad to work and live, the ex-pat lifestyle can be hugely tempting. Thousands of Brits head to the US every year to enjoy our standard of living and pursue the American dream. Sometimes they return after a set period of time, but plenty stay and choose to settle.
For those who do head to our shores – and beyond – to enjoy ex-pat living, international and offshore bank accounts are ideal for accessing money when required and without attracting punitive fees.
If you’re a Brit living in the US for example, you may have found that keeping a UK based account has led to your earnings being eroded by regular transfer, commission and transaction fees between UK pounds and US dollars.
Avoid the headache and set up an international bank account. There are wide number available and you can search for them in the same way you might for credit cards or loans, via price comparison websites.
Good international bank accounts will offer fee free purchases in US dollars and fee-free withdrawals from certain ATM machines. They should also offer round the clock global and online banking and generally not have monthly fees, although this is changing.
Other sweeteners may be offered, such as travel insurance, legal expenses insurance or travel concierge services, very useful for regular travellers.
Most offshore accounts are familiar to Brits in the US, being offered by the same UK banks that provide their home loans and UK based savings accounts.
They offer the usual benefits of their onshore account, such as debit card, overdraft and the choice of which currency the account is denominated in.
So as a British ex-pat, it makes sense to have an account held in US dollars, particularly if this is the currency that you’re paid in.
However, as with the difficulty of getting credit or loans abroad, even basic offshore bank accounts aren’t always available to all. Many require elevated minimum balances, or monthly fees apply.
If you are having problems opening an international account, or decide it isn’t worthwhile, then consider opening an account with a local bank – you will need identification, proof of residence, visa details and employment information.
Similarly, if you still have financial interests UK based, or linked products such as savings or loans that channel money from your UK account, you may wish to keep a UK based account but find a bank that doesn’t charge for withdrawing money overseas.
If you decide to move to the US from the UK, there is the option of opening offshore accounts with high street banks, designed specifically for those living away for extended periods and not usually required to pay tax on interest earned to the UK government.
However, be sure that you are following the tax rules of the US, or your new host country. Offshore accounts will be registered generally in Jersey or the Isle of Man and their tax rules are different. Seek expert advice to ensure you don’t fall foul of the law.
Similarly, if while living abroad you need loans, for example home buying loans or car finance, speak to a financial adviser who specialises in ex-pat financial products, for the best, most accurate advice.
{ 0 comments }