Last Updated on December, 2024
In the current world we live in both the old and new generations thrive on the internet for pretty much anything. From information sourcing to online shopping, the internet makes it a piece of cake. We basically live in the online world.
So it only makes sense that a process like opening a bank account is also available online for added convenience and ease. Since this process has become more accessible in recent years, what’s lacking is a rundown on how to approach and access this process more sensibly.
Here’s my article on how to open a foreign bank account Online for free. I’ll give you a detailed breakdown of the process and address many other concerns and queries that come up regarding the process and the account ownership itself.
Without further ado, Let’s jump right in!
Quick Summary
To open an international bank account online, one must choose a suitable bank or service provider, check eligibility and gather required documents, fill out an application, and verify and fund the account. There are also various fees and costs to consider when opening and maintaining a foreign bank account.
The process of opening a foreign bank account has become more accessible online, but there is a lack of guidance on how to approach and access this process sensibly.
Some of the best international bank account options include Wise, Revolut, Charles Schwab Global Investing Account, and HSBC Global Money Account.
Contents
- A Step By Step Guide: How to Open an International Bank Account, Online, Free
- What Documents are Required to Open an International Account?
- Can an International Bank Account Be Open for Free?
- What is an International Bank Account?
- Who is an International Bank Account for?
- Can an International Bank Account Be Open From the US As an American?
- Advantages and Limitations of Having an International Bank Account
- Costs Associated With Opening a Foreign Bank Account
- 4 Best International Bank Accounts
- Is it Safe to Keep Money in an International Bank Account?
- Frequently Asked Questions
- Summary: Opening a Foreign Bank Account Online
A Step By Step Guide: How to Open an International Bank Account, Online, Free
Being a US citizen, if you want to open an international bank account as a resident of another country, the process is going to be very similar to that of what residents and US citizens in the US would go through.
However, as a resident and citizen of the US, if you want to open a foreign bank account online, in another country, the process is going to be different.
Here’s what you can follow to open an offshore or foreign bank account;
Step 1- Choose the Bank or Service Provider You Like Best
During the first stage of this whole process, naturally, you have to do your research. Doing your research will include finding a suitable bank and checking available account types.
A thorough research will help you shortlist your offshore account options and explore available offers from leading global banking brands and digital specialist services like Wise and Revolut.
To make life easier for you, I have covered a dedicated section where I discuss more on the best international bank account options.
Step 2- Check Your Eligibility and Gather the Required Documents
Although listed as step 2, this essentially is a continuation of your research phase. After you shortlist your preferred options, dig deeper and look into the eligibility criteria of each account type you are interested in. This will help you figure out, prepare or obtain relevant information and documents to ensure a smooth process.
Being aware of the eligibility criteria may shrink your preferred bank/service provider options further, but you at least know with the latest options you have a successful chance.
During this phase or any other phase, if you need further clarification on any of the information listed online or require additional information, you can email or contact their customer service center.
Step 3- Fill the Application Form and Submit the Documents
Now that your preliminary investigation has given you options, pick the most suitable bank or service provider and go ahead and apply online. This can easily be done via the bank’s website or app.
Usually you have to register online and wait for the bank to respond with a consultation to ensure eligibility. However, most banks now allow you to fill out your application form online and upload the relevant documents to speed up the process.
Step 4- Allow the Account to Be Verified and Fund it
The bank will review your application within the next few days of applying. Given that your application form meets all the bank’s requirements, the account will be set up and verified within the due period.
If your account is verified, you will be notified. Now that the account is up, you can now decide on the funding based on the account type you chose.
Step 5- Start Transactions
You can now access your verified account and begin your transactions. You can set up online and mobile banking as you desire. You can start managing your foreign bank account and request any paperwork or card if you require.
What Documents are Required to Open an International Account?
Many banks worldwide allow non-residents and non-citizens to maintain accounts with them given that they prove their eligibility. But the exact documents required will change from bank to bank based on the country and the residency status of the applicant.
However, the basic documents and information required for an offshore or foreign bank accounts include:
It is worth noting that based on the official language of the bank//service provider, you may have to translate, verify or notarize your documents. And this will be an additional cost in your foreign bank account opening process.
Can an International Bank Account Be Open for Free?
Yes, a foreign bank account can be opened for FREE without any account opening fees involved. Opening an account is free with most of the banks, especially since it is online. However, most banks require a minimum deposit amount to open and maintain the account.
Fortunately, digital account service providers like Wise and Revolut do not require any account opening fees or a minimum account balance. Besides, their entire application process is online. From application to verification to onboarding process, all of it online, ensuring convenience, speed and reliability.
What is an International Bank Account?
A foreign bank account is also an offshore account. It is a financial account that is held at any bank or financial institution outside of your country of citizenship or residence. Basically, it is an account that is in a country other than the one you live in, hence the terms foreign, international and offshore.
Foreign bank accounts allow owners to hold one or more foreign currencies and sometimes even in USD. These accounts make international money transfers easier.
Depending on customer needs, providers offer different types of accounts. Based on the account type you choose, foreign currency transactions and holding multi currency balances become easier.
This makes international money transactions more convenient with the need for currency conversions, saving on additional costs involved in the overall process.
Who is an International Bank Account for?
A foreign bank account is for anyone who needs to make transactions and manage currency on a global level. And anyone with a passport can open a bank account abroad.
Many foreign accounts come with strict eligibility criteria, including minimum balance maintenance, monthly fees and much more. Therefore, anyone who can satisfy these requirements are eligible to hold an international/foreign bank account.
Many people can benefit from owning a bank account in a foreign country.
To be specific:
Can an International Bank Account Be Open From the US As an American?
Mainstream banks do not offer many multi currency account options, especially if you are looking to use it as a daily checking account. However businesses and investing customers get offered a wide set of services.
Advantages and Limitations of Having an International Bank Account
Of Course it goes without saying that the advantages of owning a foreign bank account outweighs the limitations. Owning a foreign bank account can prove extremely beneficial for many people as discussed above. So below is a list of advantages of and limitations of a foreign bank account.
The key advantages include:
The key limitations include:
Costs Associated With Opening a Foreign Bank Account
As I already mentioned, even though opening an account is free, there are a few additional costs you need to consider. These costs are very different to those that you may incur holding a US bank account.
These costs include maintaining a minimum deposit balance to keep your account active and account maintenance fees to allow you to access services and features of your account.
How much you have to pay will be based on the account type and bank location. The required minimum balance could be high and similarly the fall below fees if you fail the monthly minimum balance. Hence the fees are likely to be higher compared to standard account types.
Reflecting the costs involved, most account types offer access to unparalleled features like wealth management services, rewards, priority treatment, flexible digital access with lower cost involvement, etc.
Listed below includes features and services where additional fees are involved:
Here’s how you can maximize the utilization value of your foreign bank account:
4 Best International Bank Accounts
So, to make your research process from step 2 above much easier and informed, I have shortlisted 4 of the best options you can go with in opening a foreign bank account. The list includes both mainstream banks, neo banks and online specialists.
The table below will give you a summary of the features/service you can expect from each bank account;
| Service/Features | Wise Account | Revolut Account | Charles Schwab Global Investing Account | HSBC Global Money Account |
| Can I open an account online? | Yes | Yes | Yes | Yes |
| Multi currency account | Hold 40+ currencies | Hold 25+ currencies | Invest in 12 currencies | Hold 8 currencies |
| Account opening fee | None | None | None | None |
| Minimum monthly balance maintenance requirement | None | None | None | None |
| Fall below fees | None | None | None | None |
| Account maintenance fees | None | None for a standard account. A premium account fee of up to $16.99 will be applicable. | None | None. But it is preferred to maintain a standard HSBC USD account for which fees may be applicable. |
| International transfer fees | From 0.43% | Limited no-fee transactions. Beyond the limit 0.3% is applicable. Limited no-fee currency conversion. Beyond the limit 0.5-2% is applicable. | 15 USD for international online transactions. Currency conversion fee of 0.2-1% | No fee transactions to HSBC accounts. Exchange rates include a markup. |
| International debit cards | Available | Available | Not Available | Not Available |
| Account closure fee | None | None | None | None |
Digital/online specialists like Wise and Revolut are more geared for daily use purposes like pay and get paid. Whereas mainstream bank accounts are more focused on facilitating investment options for customers, especially to high wealth individuals.
Below we will look into each account in detail;
1. Wise Account
Wise is an online electronic money account that facilitates day to day money management. The account can be opened through the website or the wise app.
Wise accounts support 40+ foreign currencies. You can send payments to 160+ countries and receive payments in up to 10 currencies. Wise accounts give you the option of going for a Wise card. And these Wise cards are accepted in over 150+ countries for spending and withdrawals.
Key features of the Wise account:
Curious about Wise? Check out our in-depth review here to learn more!
Pros
Cons
2. Revolut Account
Revolut is a neobank that allows customers to open an account online or via the app. Revolut accounts support 25+ foreign currencies.
Revolut offers a wide selection of account types/ plans starting from a standard account and going up to premium account options.
A standard account has no monthly fee or transaction fees therefore the functional features are also limited. Whereas a premium account comes with higher fees and selection of services and features.
All revolut accounts come with cards. These cards can be used for payments and withdrawals globally. Some account types also offer zero fee currency exchange perks as well.
Key features of the Revolut account:
Curious about Revolut? Check out our in-depth review here to learn more!
Pros
Cons
3. Charles Schwab Global Investing Account
Charles Schwab allows you to pair a Schwab One brokerage account with a global account. This facilitates the extension of investment options and also allows you to pay in foreign currencies instead of USD.
The global account supports investment in 12 foreign currencies. They also offer online self trading whenever you want and broker assisted trading as well.
Key features of the Charles Schwab Global Investing Account:
Pros
Cons
4. HSBC Global Money Account
The HSBC Global Money Account allows the exchange of 8 foreign currencies. It is an easy to hold account. Plus, if you already have a USD bank account at HSBC, you can easily add a global account.
The exchange rates are competitive with HSBC. The global account allows you to hold the balance in foreign currency or withdraw required funds into an HSBC account either under your own name or someone else’s.
Key Features of the HSBC Global Money Account:
Pros
Cons
Is it Safe to Keep Money in an International Bank Account?
Yes, it is safe to keep money in a foreign bank account as long as the service provider is a legally registered and well reputed entity. The bank account options explored above are all reliable options. They are all confirmed to be legally accepted in the US and even internationally as well.
Useful guides:
Frequently Asked Questions
Summary: Opening a Foreign Bank Account Online
Eventually, choosing the right bank or service provider will solely depend on your requirements and personal preferences.
Online specialists like Wise and Revolut are great options for personal use. They offer multiple account selection, flexible banking, ability to hold multiple foreign currencies, low transaction rates, competitive exchange rates, and more.
However, I hope you found this article helpful in guiding you on how to open an account, online for free. And it also hopefully resolved the many other minor doubts related to the process and owning a foreign bank account.
Was this article helpful?
Was this article helpful?
