For expats who would like to control their money better in a foreign country, international banking is the way to go. When I was working in Shanghai, I was kicking myself that I didn’t apply for an international account until I was ready to resign from my job and move to Malaysia.
If you don’t have one yet, here are the benefits you can gain when you sign up for an international bank account.
International Banking: Multiple Currencies in One Account
Being able to hold different currencies is ideal for any expat who has financial responsibilities and services in another country or one which uses a different currency.
Some even allow you to save multiple currencies without opening multiple accounts.
With these accounts, you can be paid in your preferred currency and still be able to pay your bills with the local currency.
Low Transfer Charges for International Banking
Expats and financially savvy individuals prefer international bank accounts because it reduces the fees you need to pay if you want to transfer money to another country.
Some banks allow clients to use foreign exchange services so they can exchange their currency at a competitive rate. This ensures that they can get more for their money before they transfer it. You won’t even be charged to use the service. This is crucial if you are sending money back home every month.
Protection From the Market and Political Volatility
For expats living in countries experiencing political and economic turmoil, an international bank account will protect your money.
With your money safe in your account, it will not be affected by currency devaluation, inflation or even war.
The government won’t be able to get the money from your account, no matter what happens inside the country.
Reduction of Inheritance Taxes
If you plan to give your estate to your children, using an international bank account can help you out. You can protect your money from inheritance taxes that may apply to it in the future. If your account is tied to companies and trusts, it can streamline estate taxes.
Tax Benefits
Some countries often include taxes when you receive or send money using remittance channels. However, if you transfer or send money through your international bank account, no deductions will be recorded. You also won’t worry about getting tax deductions if you withdraw your money.
A Higher Interest Rate with International Banking
When you place your money in the bank, the more money you put into the account, the more interest you may accrue. With international bank accounts, financial institutions will offer better interest rate so that your savings grow even if you are not actively investing.
Conclusion
It is important that you secure your financial future, especially if you are living abroad. With an international bank account, you can be reassured that no matter what happens in the future and where you go, your money is protected.
Have you put your funds in an international bank account? What have your experiences been like?
by: Kally Tay
