Before opening a new foreign account, make sure you do your research to ensure that you can provide all the necessary documentation and be aware of waiting periods and residency requirements.
There are multiple reasons, however, to maintain your home checking account and to keep some credit card accounts active and in good standing. The simplest way to keep these accounts intact is ensure that the address on the account updated to a relative or friend’s address in the country of origin. You can also have your statements sent to you online.
Maintaining your original bank account helps make sure your hard-earned credit score is alive and well for as long as you continue to pay your bills as required. This aids your credit score by proving that you've been financially responsible in your home country regardless of living abroad. In the event that you choose to return to your home country, this will make the process of reestablishing yourself a great deal easier.
Another benefit to keeping up with your native account is the option to take advantage of purchases and offers available only to citizens of your home country. For instance, iTunes was originally only available to US account holders. American expats could still take advantage of iTunes and its offerings if they kept their US bank accounts; however, their new countrymen would not have the same opportunity.
Another thing to take into consideration is that it is infinitely easier to pay bills, handle transfers and send money in your native currency if you have bank account in that country. Foreign checks can take months to clear, which can throw financial matters (such as bill paying) into chaos if not kept current. There may also be instances where a foreign check or transfer won’t be accepted under any circumstances.
The constantly changing rates of the foreign exchange market can also influence your decision to keep up with your native accounts. If you maintain bills and accounts in your home country, it can save a lot of money if you are able to avoid the fees and waiting periods associated with exchange brokers. Bills and other expenses can be paid directly from the original account, avoiding the hassle of internal currency exchange. The ready availability and easy access to online banking offered by most financial institutions makes this an even more attractive benefit to maintaining a bank account in your home country.
Of course, you will still want to open checking and savings accounts in your new country, but pay careful attention to exchange rates and transfer fees, particularly if you intend to move a large sum of money over international lines. Pay careful attention to tax laws as well. If you choose to maintain accounts of any kind in any country, you will still be held accountable for the tax liabilities associated with those accounts.
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