Expats: how do you deal with banking?
 

I'm going to be expatriated to western europe.

My primary bank: Schwab
CCs: Amex Plat, Chase Sapphire, Cap 1

For international travel the above allows me to withdraw money at ATM, and make credit charges, absolutely fee-free

I rarely use any "banking" service. Everything is electronic. direct deposit --> bank --> electronic payments to credit card. The few paper checks I receive are deposited electronically (via photo capture)


I will be paid in EUR.
does it make sense to set up local banks and credit cards?
(or, will schwab bank [not brokerage] take deposits in foreign currency?)
i suppose even with fee-free CC transactions, i will be hit through exchange rates somehow
ill lose most of the good features from the USA credit cards (purchase protection, return protection, extended warranty, etc).... but it seems that europe-issued credit cards dont generally have good benefits or rewards earning schemes anyways ?? right or wrong??

When I was living in Spain and paid in Euros, I opened a local account. I used Citi since I also had a US based account with them. Transfers back to the US were easy. I did get a local credit card as well (I lived over there 10 years ago an all US cards had FX fees). Getting a card can be difficult at first, ask your employer if they have a relationship with a local bank, that can help get you approved.

Most award programs in Europe (I don't which country you are talking about) are not as rich but there are some. More info on where you will be will help here.

I kept my US cards and used them about 1x every 6 months to stay active and ensure that I continued to have a US credit score for when I eventually moved back.

The climate has definitely gotten chilly for western European banks opening or even keeping open existing bank accounts for Americans, thanks to some onerous IRS reporting requirements imposed in Obamacare. Finding a bank in some western European countries can now be a problem.

Fortunately, I am in eastern Europe, and for some reason the banks here haven't freaked out about that yet. I have accounts both in the country I work in and in the neighboring country. One is in dollars and the other in euros, although neither country actually uses the euro. Most banks in this region allow accounts to be maintained in your choice of local currency, dollars, or euros. Some also offer other currencies like the Swiss frank, but those are not common.

You will need an account in Euros (assuming) to pay rent and utility bills, usually done as autopay. This can be hard as many countries do not permit foreigners to open regular accounts in the local currency. You should also get a check guarantee card (might need letter from employer or demonstration of regular income) and at least one local Visa/MC (depending somewhat on location) with chip and pin for stuff like after hours gas purchases and local train tickets from machines. Some places use more cash than in the USA, while in other areas, it's all transacted with the local Visa using a small machine.

If your employer regularly sends expats overseas, they should be able to help with many of the logistical details such as finding housing, schools, banks, etc.

Do you know the local language?

no brainer - many bills in the EU are still paid by transfer, check, or cash. The only issue is the Treasury and IRS requirements (F-Bar etc.).

To the extent that you need to do international currency exchange/transfers, check out www.xe.com. I found them to be convenient and reasonably priced. I know it's very easy to do USA/Canada transfers, not sure how easy for Europe.

I have a bank account here in Cyprus. It was very easy to set up. I set it up before I moved here and did so using a US address. Once I moved here permanently, I just changed my address. I can view my account info online, though Cyprus banks do not have the same kind of on-line banking as the US does. I have a debit card from my Cyprus bank that I use as a credit card - to buy things. I can use my US credit cards too, but use the debit card for the small stuff like groceries.

In Cyprus you can have a bank account in Euros, GBP, or dollars. Mine is in Euros. I do not use the banks here to do my currency exchanges - the fees are too high and the rates are not that good.

I can get a credit card too, but have not needed to so I haven't bothered.

If you can hit the minimums ($100K total in all accounts in one country) HSBC Premier is rather nice for a single global website to manage all your accounts and do transfers.

"Obamacare" -- actually not Obama-care but "appeasement/compromise effort care" -- is not the reason for foreign financial institutions treating US persons like lepers to be avoided.

I echo this suggestion. Used them for 4+ years as I worked in the UK, Australia, etc. Have low rates and setups to do direct deposits to any possible account, with no wire fees. The foreign exchange rates that your bank or even brokerage will charge are ridiculous.

I highly suggest that you specify the country you are going to go to OP. You are getting advice related to Australia, UK, Cyprus, Ukraine, etc.

What country?
How long (expected)
Homeowner?
Married?/Kids?
Military or Gov't?

All of these can significantly change what services you will need, your taxes and a while lot of other things. Besides, you might actually get some advice that is relevant.

Obama has screwed up banking for Americans in most countries, but as a temporary ex-pat, it is unlikely you will run into any issues. Just stay away from buying stocks, mutual funds, etc. from you new bank.

Your needs will depend on the country in question. In most European countries you can do everything related to banking electronically. But if you are paid in euros, and you will pay most of your bills in euros, it probably makes sense to open an account in a local bank, or a local branch of your favorite multinational bank.

...that word, I do not think it means what you think it means. ;)

[edited outdated personal info]

I'm a European in the US and I bank with Schwab as well. One interesting thing is that they offer basically free and fairly fast international money transfer into your brokerage account through a German reference account:
http://www.schwab-global.com/cms/P-2...msid=P-2791907
Using SWIFT (IBAN/BIC), transferring money from Austria to Germany should cost the same as a money transfer within Austria (i.e. usually free).

I did this a few times and the money was in my Schwab account within 2-3 days.

I would definitely recommend getting a checking account in Austria (no idea how hard this would be to get), otherwise you'll have a hard time getting paid.
I wouldn't bother getting a credit card there, your Cap1 and SP should be good to go. I don't think the exchange rates are unfavorable, plus credit cards there usually have a fee and don't earn many rewards. Though this might have changed in the past five years while I was gone...