The short version
- A simple setup is three accounts, each with its own job.
- A multi-currency account to get paid and spend in many currencies.
- A backup card from a second company, in case the first one stops working.
- One account at home, for bills and anything still tied to your home country.
What bank accounts do you need to live abroad?
One simple setup is three accounts with three jobs. If one fails, the others keep you going.
| Account | Its job |
|---|---|
| Multi-currency | Get paid, hold and spend money in many currencies |
| Backup card | Pay if your main card is lost, blocked or frozen. Get it from a second company |
| Home account | Bills, payments and anything still tied to your home country |
None of this needs you to move first. You can set it all up while you still live at home.
What is a multi-currency account?
It is one account that holds money in many currencies at once. You can get paid in one currency, keep it, and spend it in another.
Wise is one example. Wise says you can use 40 currencies, get account details like IBANs and routing numbers so people can pay you, and use its card in more than 150 countries. Wise also says it uses the mid-market exchange rate and never adds anything to it. Other providers exist, and what each one offers can change by country. Check the provider's own pages before you open an account.
Why it helps: a client in the US can pay you in dollars, a client in Europe in euros, and you choose when to convert.
Is your money protected like in a bank?
Not always in the same way. In the EU, a deposit guarantee scheme pays back up to EUR 100,000 of your money if your bank fails.
Some money apps are not banks. Wise says it does not lend out your money, and that it safeguards it instead. Safeguarding means it keeps your money apart from its own money. Ask any provider how your money is protected before you keep a large amount there.
One simple split: spending money in the multi-currency account, and savings in a bank covered by a deposit guarantee.
Why do you need a backup card?
Because one card is one point of failure. A card can be lost, stolen, or blocked by a fraud check while you are in a new country. If it is your only card, you may have no way to pay that day.
The backup should come from a second company, not a second card from the same one. If the first company freezes your account, both of its cards stop. Keep the backup card in a different bag or pocket from your main card.
Should you keep a bank account at home?
Yes, if you can. Bills, tax payments, refunds and some payments may still need an account in your home country.
Before you move, ask your bank two things:
- Can I keep this account if I live abroad?
- What do you need from me when I move, like a new address?
Get the answer before you leave. It is much easier to sort out while you still live there.
How do you avoid surprise fees when you pay abroad?
Check the fee before you pay. In the EU, your card provider, your bank or the shop must tell you the currency conversion fee before you agree to the purchase. Your card provider must also list its fees in its terms and in its app or website.
Read those fees for each card you carry before you travel. Then use the card that costs least for each kind of payment.
What comes after banking?
A company you can run from anywhere. That comes later in the game. If you have not started earning online yet, go back to step one: earn money online before you move. If you are planning time in Europe, count your days with the free Schengen calculator.