International Banking Guide
Wise, Revolut, local accounts, and currency strategies.
Managing money across borders is a crucial part of living abroad. Relying on your traditional home bank for everyday international expenses can lead to exorbitant fees and poor exchange rates. This guide covers modern international banking solutions, how to handle local accounts, and currency exchange strategies.
Multi-Currency Accounts (Wise & Revolut)
Before you even leave your home country, you should set up a multi-currency account. These services allow you to hold, exchange, and spend money in multiple currencies at the real mid-market exchange rate.
- Wise (formerly TransferWise): Excellent for large international transfers. Wise gives you local bank details in several countries (e.g., a US routing number, a European IBAN, a UK sort code), allowing you to receive money like a local.
- Revolut: Offers a great app experience with built-in budgeting tools, travel insurance, and cryptocurrency options. Great for everyday spending and ATM withdrawals.
Opening a Local Bank Account
While Wise and Revolut are incredibly useful, you will eventually need a traditional local bank account in your destination country. This is typically required for:
- Receiving a salary from a local employer.
- Signing a long-term apartment lease.
- Setting up direct debits for utilities and internet.
- Accessing local payment networks (e.g., PIX in Brazil, iDEAL in the Netherlands).
To open a local account, you generally need your passport, a local tax ID number, and proof of local address.
Currency Exchange Strategy
When living off savings from your home country, currency fluctuations can significantly impact your budget.
- Avoid Airport Kiosks: Never exchange cash at the airport if you can avoid it; the rates are heavily marked up.
- Use No-Fee ATMs: Withdraw cash using a card that doesn't charge foreign transaction fees or out-of-network ATM fees.
- Dollar-Cost Averaging: If you need to transfer large sums, consider breaking it into smaller monthly transfers to smooth out currency fluctuations over time.
Cross-Links and Related Information
Sorting out your banking is a major step in the Moving Abroad Checklist.
You may also need a local number to receive bank SMS verification codes; learn more in our Phone Plans Guide. If you're a US citizen, make sure you understand how foreign bank accounts affect your taxes in our Tax Residency Guide.
Frequently Asked Questions
What is the best way to transfer money internationally?
Services like Wise and Revolut are generally the best options as they use the mid-market exchange rate and charge low, transparent fees compared to traditional banks.
Do I need a local bank account in my new country?
Yes, usually. A local bank account is often required to receive a local salary, set up utilities, and rent an apartment.
Can I use my home country credit card abroad?
Yes, but you should ensure it has no foreign transaction fees. Otherwise, you may be charged an extra 1% to 3% on every purchase.