Am I allowed to keep my UK account open? Should I open a current account in my new country? Is an offshore bank account a consideration for me? How can I simplify and streamline everything? These are the most common questions expats ask – and today in our simple guide to sorting your bank account out when you move abroad we’re going to cut through the flannel and tell you exactly how it is!
In other words, we’ll show you how you can easily manage your money when you move abroad – whether you plan on living in the sun for the rest of your life, you’re working abroad for a while or you want to travel and see whether the expat life is for you.
You will see and read conflicting advice and information on a myriad of expatriate and money sites – but if you want the truth about what is and is not allowed, and you want practical advice from those who have been through the dilemmas you’re now facing, read on…
Am I allowed to keep my UK bank account open?
Yes!
It really is as simple as that. There is absolutely no law or rule written that says an expatriate Briton cannot keep their old UK account open.
However, we’re aware that some of the high street banks in the UK frown on such activity and put pressure on any customers who are moving overseas to close their account. This is for 2 reasons, 1 they have a ‘know your customer’ due diligence obligation to the ombudsmen and regulators that keep an eye on them and 2, they would rather force you to move your money matters to an expensive expat/international account!
With regard to the first issue, you can simply opt for online banking and statement delivery and then your bank has no need to send correspondence to any street address. You can leave your registered address as your old home, or just move it to a family address if your bank starts making unpleasant noises about ‘due diligence’ and the like. And no, it is NOT illegal because as stated, there is no law that says an expat Brit can’t keep their UK bank account open.
What’s the point of keeping a UK account open?
If you want to keep using your British credit card for online payments, if you have direct debits or your paypal account linked to your UK account and/or you have regular or even infrequent fiscal liabilities in the UK it makes 100% sense to keep your account open.
What’s more, if you’re ever likely to return to the UK – even for just a holiday – a UK account can be useful. If you think you will one day return to Britain, keeping an account is almost essential – otherwise it is an absolute nightmare to get a new account as you will not be able to prove residency in the UK for more than the 5 minutes since your return, and you will be seen as a potentially dodgy character who’s not worthy of an account!
You will also have a nightmare trying to rebuild your credit history to even get to the point where you can rent a house or get a mobile phone – so keep your account open!
The only people who shouldn’t keep an account are those trying their damndest to lose their British domiciled status…
Do I need another current account abroad?
Again the answer to this question is quite simple – yes!
If you want to be paid by your local employer, have a bank account you can use to pay your utility bills, you want to develop a local credit history, rent or buy a home, get a mobile phone, have finance for a car or just manage your house keeping money for every day bills, a local current account will be essential.
The only people this advice is not right for are those who think the local banking infrastructure is insecure.
What about an offshore bank account?
You may find that you can roll all of your banking needs into one offshore bank account offered by an international bank with massive global presence – such an account can be as flexible as a local bank account or an account back in the UK. Such accounts are offered by the likes of HSBC for example – but often you have to pay a fee, have a minimum balance and you will still struggle to get local credit from any other institution if you find you need a mortgage for example.
International accounts can be useful – but they are not suitable for everyone. Get a few brochures, read the features and the small print and see if you would benefit. If not, stick to a local account bank home and one in your new nation.
