An international bank account has many of the same features as the typical domestic bank account, but with several unique differences, including the ability to hold an account in multiple currencies. Here is an explanation of some of these features to give you a better understanding of the capabilities.
Multiple Currencies
If you travel often between several countries, then having an international bank account in multiple currencies can offer you several advantages including:
- significant exchange rate savings - Typically, a bank’s customers receive better exchange rates when exchanging currency. There is also the opportunity that you may phone your bank and conduct the exchange just as if you were right there in front of the teller, and then withdrawing from an ATM in the local currency, adding to your savings in fees.
- access to local currency via ATM anytime
With an international bank account, wire transfers are much easier, and involve little to no additional paperwork or red tape. These banks are setup for this purpose and unlike your local hometown bank, they conduct these types of transactions on a regular basis and have no need of using a correspondent bank as is typical with a small hometown bank. Many times these transfers can be made available on the same day they are sent.
Online Banking
Most international bank accounts give you the ability to conduct banking online including the ability to:
- access your accounts anytime, from anywhere in the world
- transfer balances between accounts at your leisure, as needed
- pay your bills in multiple locations online, anytime
Depending upon your circumstances, there may be certain tax advantages available to you with an international bank account.
Minimum Fees
Many of the banks that offer an international bank account offer a significant savings on fees you would otherwise incur. In the case of holding multiple accounts, many will also attach a savings account that carries no fees, and no minimum balances. This can prove to be beneficial when an emergency arises and you significantly deplete your savings. Most banks would begin charging you a monthly maintenance fee if you go below a minimum level.
If you travel extensively, or work abroad, you owe it to yourself to look into opening an international bank account. The savings in fees alone could potentially add to your overall income.
