Hello all.
I’m an American expat and I’ve been here for more than seven years. During this time I’ve always kept my US bank account. At first it was to pay student loans, and when I finished those I kept it for my credit cards, because when I first came here it was rather difficult to get a credit card as a foreigner. I hear it’s gotten much easier so I’m planning to get a card with my Japanese bank too.
My dilemma is whether it’s really practical to keep my US bank account at this point. The yen had been dropping so I quit sending money overseas hoping things would improve. Instead, as you know, the yen yanked real bad. I don’t make a lot here in terms of salary so this really makes me want to hold on to my money in yen for now. But the US bank account charges a monthly fee if your account dips below a certain amount, so in order to keep it in good standing I need to put more money in it.
But then I ask myself, do I really need this account now? It’s useful for some things, but I can pay for everything I need without it.
But I’m not sure if I even can close my US account from Japan, or if there would be complications I’m not aware of with no longer having American credit cards etc. I would wait to close it until after I have a Japanese card, but even so.
If it weren’t for the monthly fee, I’d probably feel better about keeping the US account, but as it is the cost of upkeep with the low exchange rate is needling me.
Thanks for any advice/opinions!
4 comments
Can you keep it above the fee amount or switch to a lower fee or savings account? Let it sit as an emergency and/or travel home fund? If you don’t need it to use then the balance shouldn’t deplete. Personally it seems handy to have (deposits from abroad, from family or the Covid payments, etc) and opening a fresh one while living in Japan might prove onerous.
Do you qualify for any federal credit unions? I maintain an account with a credit union in my hometown for no fees that I qualified for because my family members are in it and because I (technically) maintain an address in their service area. [American Citizens Abroad](https://www.americansabroad.org/aca/sdfcuaccounts-description-and-faqs/) also has an option if you don’t have an “in” with a smaller credit union.
I keep an US account for simple transactions that require an US address or account. Some companies won’t work with foreign accounts because they think fraud is going on.
If you plan to file for Social Security retirement benefits when you become eligible you will need a US bank account. I keep mine open with the minimum balance required to avoid a monthly service charge.