Moving to Europe from the U.S. is an exciting adventure filled with new experiences. However, one critical financial move that many expats overlook is keeping their American bank account and credit cards. While it might seem logical to close them and fully transition to a European banking system, maintaining your U.S. financial ties can offer significant advantages. Here’s why you should keep your American bank account and rewards credit cards even after relocating to the EU.
1. Maintain Your U.S. Credit History
One of the biggest reasons to keep your U.S. credit cards is to preserve your credit history. Your American credit score won’t follow you to the EU, and if you ever decide to move back or need U.S.-based financial services, a healthy credit history will be crucial. Closing all your accounts could erase years of credit-building efforts, making it harder to get loans, mortgages, or even a new credit card in the future.
2. Access to Superior Credit Card Rewards and Benefits
Many U.S. credit cards, especially premium ones like the Chase Sapphire Preferred, American Express Platinum, and Capital One Venture X, offer better rewards, points, and perks compared to most European credit cards. Benefits like travel insurance, purchase protection, and no foreign transaction fees make these cards an excellent choice for expats who travel frequently.
3. No Foreign Transaction Fees
Speaking of fees, some of the best American travel credit cards offer zero foreign transaction fees, meaning you won’t pay extra for purchases made in euros, pounds, or other currencies. This can lead to significant savings, especially if you’re making large transactions abroad.
4. Easier Access to U.S. Income and Investments
If you still have income sources in the U.S. (such as freelance work, rental properties, or investments), keeping a U.S. bank account allows you to manage those funds efficiently. Many American institutions require a U.S.-based account for direct deposits, and transferring money internationally can be expensive and slow. Services like Wise (formerly TransferWise) and Revolut can help, but having a U.S. account remains the most convenient option.
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5. Better Exchange Rates for International Transfers
While European banks offer their own currency exchange services, U.S. banks often provide better exchange rates and lower international wire transfer fees, especially if you’re using a service like Charles Schwab or Fidelity, which have accounts tailored for expats.
6. Convenience When Visiting the U.S.
If you plan on visiting the U.S. frequently, having a U.S. bank account and credit card can save you from ATM withdrawal fees, currency conversion fees, and potential declined transactions. Some American retailers also don’t accept foreign credit cards, making it even more essential to retain at least one.
7. Avoid Banking Restrictions in the EU
Some European countries have strict banking regulations that can make it difficult for non-citizens to open accounts. Even if you do open an account, there may be limitations on international transfers, card usage, and higher fees for non-residents. Keeping your U.S. bank account gives you financial flexibility and security.
Best U.S. Bank Accounts for Expats
If you’re wondering which U.S. bank accounts are ideal for expats, here are some top choices:
- Charles Schwab High-Yield Investor Checking – No foreign transaction fees and unlimited worldwide ATM fee reimbursements.
- Fidelity Cash Management Account – No account fees, free ATM withdrawals worldwide.
- Wise Multi-Currency Account – Ideal for sending and receiving money in multiple currencies.
Final Thoughts
Moving to the EU doesn’t mean you have to cut financial ties with the U.S. Keeping your American bank account and rewards credit cards can provide financial security, better perks, and more flexibility for your international lifestyle. Before making any decisions, ensure your bank allows international transactions and update your contact details to avoid account freezes. By maintaining these financial connections, you’ll enjoy the best of both worlds!
If you want to know more about the financial impact when moving to Europe, discover more here!
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