Summary of How to Bank When Living Overseas

00:00:00 - 00:10:00

The video provides advice on banking while living overseas, highlighting the advantages of maintaining a US bank account, such as avoiding tax nexus issues and difficulties obtaining credit cards in other countries. Services like Wise can be used to move money between foreign accounts and pay bills in different currencies. Diversifying bank accounts is also recommended, with offshore accounts for investing and local accounts for household bills. It is suggested to get a local account in countries like Columbia and Turkey and use services like Swift to transfer money between accounts to keep US bank accounts and make life easier.

• 00:00:00 In this section, Andrew Henderson discusses the benefits of maintaining a US bank account if you are an American moving overseas. He explains that Americans do not have to worry about tax nexus issues with US bank accounts, unlike Canadians or Australians, for example. Although it is generally not possible to pay capital one or Mastercard bills from overseas, with American Express you can pay it through a foreign bank account, albeit with a $25 fee. Henderson advises that if your US bank allows it, keep a US credit card as it can be harder to get credit cards in other countries, and because many countries may not have American Express or any local banks where you would like to establish credit.
• 00:05:00 In this section, the speaker advises on the benefits of keeping a US bank account while living overseas, particularly for those who own businesses or work remotely. By sending a salary to a US bank account, individuals can avoid complications with tax implications or issues with foreign currency conversion. By using services like Wise, individuals can easily move money between foreign bank accounts and pay bills in different currencies. Even for those who temporarily live as tourists in certain countries and cannot open a local bank account, converting dollars into local currency through a service like Wise and sending it directly to the recipient can be a convenient alternative. Overall, maintaining a US bank account could offer more flexibility and expand individuals' financial options.
• 00:10:00 In this section, the speaker emphasizes the importance of diversifying bank accounts, especially if someone is an American taxpayer because they are required to report those bank accounts. For offshore banking, he recommends investing your cash and investment in an offshore bank account. Yet, as for household bills, the speaker generally uses local bank accounts through residence permits where he would move the money from wherever it comes in. He advises getting a local bank account in countries like Columbia and Turkey, even if it's not the main home, paying bills once a year in advance could be done through wise. He also suggested using services like Swift to transfer money between your own accounts to keep your US bank accounts and make your life easier.