Traditional bank accounts vs online providers

What about the pros and cons of traditional brick and mortar banks compared to their newer virtual rivals? Again, there’s no simple winner in this debate. Traditional bank international accounts may suit people who prefer to transact in a branch, but can come with minimum deposit requirements, monthly fees and some restrictive eligibility requirements. Online options tend to be somewhat cheaper and more flexible, but may not offer the full range of products and services that a regular bank can. Think carefully about how you’ll use the account before you get started to make sure you make the best choice for your needs.

How to open an international bank account in 6 easy steps

Q: How does an international bank account work?

International bank accounts - which you may also see called multi-currency accounts or global bank accounts - allow customers to transact more easily in a range of foreign currencies. You’ll often find international bank accounts let you hold a selection of different currencies as well as your home currency, so you can send and receive cross-border payments, and access your money more easily when you travel.

Q: What is the best international bank account?

There’s not really any best international account - it’s more a question of personal preference and how you like to organize your spending. You can find international accounts from banks and also from online providers - which means you’ve got a good selection to choose from. Check out the features and fees of any accounts you’re interested in, including regular service fees and transaction costs. Some accounts support only limited currencies, so you’ll have to make sure those you need are covered by your preferred account. You’ll also want to look at the exchange rates which will apply when you need to send, receive, or spend currencies you don’t already hold in the account. Do a bit of research before you open your international account, to make sure you get the perfect match for your needs.

Q: Local bank account vs international bank account

If you’re taking an extended trip overseas, frequently visit the same country, or are moving permanently, you may be debating whether to get a local bank account or an international account. Both have different advantages. If you’re relocating permanently, having a local bank account probably makes good sense - it can be useful to set up essential services, receive a salary and make payments in the local currency. However, holding a low fee international account can still be a helpful way to cut costs when you travel, or if you need to send or receive payments from your home country. If you’re not expecting to remain in the same location for long, an international account might be the better choice as you retain flexibility to switch between currencies when you need to. Compare the costs of using a local bank account in your destination against international bank account options to help you decide.

Q: What do I need to open a foreign bank account?

Different banks - and different countries - have their own account opening processes and rules about the documents required to open a bank account. In almost all cases, to open an account with a traditional bank you’ll need to provide: Proof of identity, Proof of address, Personal details, An opening deposit. Depending on where you are you may also need to visit a bank branch, provide a sample signature, or employment details. Online account providers tend to be somewhat more flexible and allow customers to upload their details and documents in the most straightforward way possible while complying with local laws. International accounts - either from a traditional bank or a newer online provider - can make life easier and cheaper if you live, work or study abroad. Or even if you just love to travel and shop online with international ecommerce sellers. Check out the ideas and options here to get the best international account for your needs.

If you’re relocating, planning to spend an extended period traveling, or heading away to study abroad, you might be considering getting an international bank account. International bank accounts may be foreign currency accounts set to the currency of your destination country only, or multi-currency accounts which let you manage a broad range of currencies in the same place. In either case, choose the right account for your needs and you can cut transaction costs and manage your money more efficiently.

Step 1. Choose and contact the bank

Doing some research to find the right bank and account type is essential. Take a look at the international accounts on offer from some of the big global banking brands available in the US, like:

Citibank
Capital One
HSBC

Once you’ve decided which bank might suit your requirements, get online or in touch to check the process for applying for an account.

Step 2. Choose the package suitable for your needs

The next step is to pick the right account for you. It’s worth noting that international accounts from traditional banks often come with strict eligibility requirements such as minimum balance or salary levels, and monthly fees. However, in exchange you can often access wealth management services, rewards and priority treatment.

Step 3. Fill in the application

Complete the application form online or in hard copy, and start to gather the paperwork and evidence you might need to support your application.

Step 4. Provide the necessary documents

All banks need to follow verification processes, so you’ll have to provide documents either by scanning and uploading them if you can apply online, or by visiting a bank branch. Different accounts will have different requirements, but you’ll usually need:

Proof of identity - a passport, driving license or other government issued photo ID
Proof of address - a utility bill or government correspondence in your name, usually from within the last few months
Proof of minimum funding or salary, depending on the eligibility requirements for the account

Step 5. Fund the account

Traditional bank accounts aimed at expats and international travelers will usually require a fixed minimum deposit. Once you’ve finished the application process the next step will be to add funds to your account to meet this benchmark.

Step 6. Start using the account

You’re ready to start using your account. You’ll be able to set up online or mobile banking, order a bank card and begin to manage your international account in your preferred way.

Step 1. Choose a provider

Check out the account providers and options which may suit you. You might not be as familiar with digital account providers as you are with the more famous high-street banks - so doing some research is the only way to find the one that suits your needs. We’ll highlight some providers to consider a little later. Pick a provider and the account that works for you, looking at the fees and features along the way.

Step 2. Sign up for an online account

As digital banks exist only online you won’t need to visit a branch to open your account. It’ll often only take a few minutes to get started by applying online and entering your personal details.

Step 3. Provide the requested info

Digital banks and account providers aren’t the same as traditional banks, but their account opening processes are often just as rigorous as banks because they’re regulated in the same way as any other financial institution. Therefore you’ll need to provide identification documents and details, just as you would a regular bank - but in this case you can do so by uploading images of your paperwork instead of presenting it in person at a branch.

Step 4. Wait to get verified

The account provider will check over your documents to verify your account. This shouldn’t take long but you won’t be able to use your account fully until you get the go ahead from the provider.

Step 5. Fund the account

Add as much money as you choose to your account balance. Online accounts are usually flexible about how customers operate their accounts, so it’s common to find no minimum balance requirement.

Step 6. Use the account

You’re all done. Operate your account online and in the provider app, order a linked card if you haven’t already got one, and you’re good to go.

Wise

Hold 54 currencies in your Wise international account, send payments to 80 countries, and spend with your linked card in 200+ countries around the world. Whenever you need to exchange currencies with Wise you’ll get the real exchange rate with no markup and no hidden fees, which can make this account 3x cheaper than regular US bank accounts. Get 10 different receiving accounts to get paid like a local in USD, GBP, EUR and other major global currencies, and only ever pay a low, transparent fee for currency conversion.