Banking Abroad: What Retirees Need to Know Before Moving

You can't just show up in Portugal or Thailand and expect your Bank of America debit card to work smoothly forever. International banking isn't impossible, but it requires planning before you leave the U.S.

Most retirees need both a U.S. account and a local account abroad. Here's what actually works.

Keep Your U.S. Bank Account Open

Don't close your U.S. accounts when you move. You'll need them for Social Security deposits, pension payments, and U.S. tax obligations. Many banks will let you keep accounts with a U.S. address on file—use a trusted family member's address or a mail forwarding service.

Charles Schwab and Fidelity are popular with expats because they reimburse foreign ATM fees and don't charge foreign transaction fees. Traditional banks like Chase and Wells Fargo work too, but they'll charge you $5 per international ATM withdrawal plus a 3% foreign transaction fee.

Opening a Local Bank Account Abroad

You'll want a local account for paying rent, utilities, and everyday expenses. Requirements vary by country, but most banks abroad need your passport, proof of residence (rental contract or utility bill), and your visa or residence permit.

In countries like Mexico, Portugal, and Thailand, you can sometimes open an account on a tourist visa, but having temporary or permanent residency makes it much easier. In places like Slovenia or Poland, banks often require proof of legal residency before they'll work with you.

• Bring multiple forms of ID—passport, driver's license, and a second photo ID if you have one
• Get certified translations of documents if the bank requires them
• Don't expect English-speaking staff outside major expat hubs
• Plan for 2-3 bank visits—it's rarely done in one appointment

Moving Money Between Countries

Wire transfers from your U.S. bank cost $40-$50 and come with poor exchange rates. Services like Wise (formerly TransferWise), OFX, and Remitly charge lower fees and give you better rates. Many retirees transfer a few months' worth of expenses at once to minimize fees.

ATM withdrawals work in a pinch, but you'll pay fees on both ends—your U.S. bank charges one fee, and the foreign ATM charges another. If your bank doesn't reimburse international ATM fees, you're looking at $8-$12 per withdrawal. Using a local debit card to pull from your local account avoids this entirely.

Watch Out for FATCA Reporting

If you have more than $10,000 in foreign accounts at any point during the year, you're required to report it to the IRS on an FBAR form. This isn't optional—penalties start at $10,000 for non-willful violations. Your foreign bank may also ask you to sign FATCA disclosure forms because U.S. tax law requires them to report American account holders.

Some foreign banks won't accept U.S. citizens at all because of FATCA compliance costs. It's one more reason to research banking options before you commit to a country.