Amidst all the travel arrangements, packing and good-bye parties there is one often forgotten task that would help make your stay overseas much less stressful and your repatriation less frustrating. Proper handling of your US dollar banking needs prior to departure is a fundamental, but often forgotten, part of the process of getting ready to be an expatriate.

      Despite this obvious need, a recent survey of expatriates conducted by Wells Fargo found that only 4% of the respondents worked for a company that helped them prepare their banking services prior to leaving the US. For the vast majority of expats, that means you are going to have to take care of this without much assistance.

      Most expats will continue to have bills while overseas – insurance premiums, credit card payments, tuition, mortgages, student loans, taxes and utilities are among the most common bills that need to be paid back home. In addition to an account for paying bills, most expats want to have a savings account back home where they can send their earnings for accumulation and investment.

      Some expatriates have made the mistake of closing or stopping the use of their US credit accounts while overseas. This means that after staying several years outside of the US, there will often be no active credit history available to potential US creditors. This can be a nightmare when coming home – a time when there is often a need for a mortgage, car loan or home equity line of credit. All of these are pretty tough to get without a credit history.

      Many expats leave a friend or relative in charge of their checking account back home so the US bills can be paid. This can be stressful to relationships and sometimes not very reliable. Prearranging online account access and bill payment can make this part of the process a lot simpler.

     All of this points to thoughtful planning prior to leaving the US. Often the question comes up – what US dollar banking services will I need while overseas?

     In the same survey conducted by Wells Fargo, it was discovered that expatriates’ most commonly needed/desired US bank products and services include: a checking account, a savings account, a credit card, online account access with bill payment service, retirement plans, brokerage services, insurance and basic foreign exchange services.

     Although these can be arranged after leaving the country, it is much easier to do this while still living in the US. Recent changes in the law that came into effect after September 11 make opening a US account from abroad a bit more challenging and far more time consuming. (A follow-up article will address the banking needs of those already living as expats.) Ideally, these products and services will be arranged prior to departure.

    
Here is a quick US banking checklist to help you get ready…