Why Online Banks Are The Perfect Solution For Expats' Savings Needs

expat network

Why Online Banks Are The Perfect Solution For Expats’ Savings Needs

Are you an expat looking for the perfect solution to your savings needs? Look no further than online banking! With its convenience, flexibility, and affordability, online banking offers a host of advantages that make it ideal for expats who are looking to manage their finances from abroad.

In this blog post, we’ll explore why online banks are becoming increasingly popular among expats and how they can help you save money while living overseas. We’ll also discuss some tips on how to get started with an online bank account and what features to look out for when choosing one. Whether you’re new to the world of international finance or already have experience managing your money abroad, this post will provide all the information you need to make the best choice for your financial future.

Higher Interest Rates

Online banks offer high-yield savings accounts that can help you reach your financial goals faster. With no physical locations, these institutions can offer higher interest rates on deposits than traditional brick-and-mortar banks. This means more of your money goes into earning interest instead of high fees associated with other banking options. Plus, many online banks also offer promotional rates for new customers or those who open multiple accounts. Since you are new to the country, you can take advantage of these promotions to get the most out of your savings.

Depending on the type of account you’re interested in, online banks can also offer high-yield certificates of deposit (CDs) and money market accounts (MMAs). These are great options for those looking to lock in a high rate of return on their deposits. MMAs often have variable rates that may change over time while CDs usually offer a guaranteed rate for the length of the term.

Automated Savings

Online banks make saving easier with automated options that help you stay on top of your money. You can set up recurring transfers from your checking account to your online savings account, so you’re always saving without thinking twice. This makes it easy to reach your goals – no matter how small or large – in a consistent and organized manner. As an expat, automating your savings will help you avoid costly fees for international transfers and make it easier to keep strack of your money, no matter which country you’re living in.

Keep in mind that different saving accounts come with different features. In general, high-yield savings accounts are a good choice if you’re looking to earn interest higher than what traditional banks offer, but they often require a minimum balance. Money market and CD accounts may also come with certain restrictions that you’ll need to consider before opening one. Understanding the different features of each account will help you make the most informed decision for your specific needs.

Easy to Use

Living abroad can be complicated, but managing your money doesn’t have to be. Most banks offer a user-friendly website and mobile app so that you can access your accounts from any device. You’ll be able to manage all of your online accounts quickly and easily with just a few clicks or taps. This includes the ability to transfer funds between accounts, view statements and payment history, set up alerts for upcoming payments, and more!

In addition, many online banks are constantly updating their platforms with new features that make it easier to keep track of your money and make smarter financial decisions. For example, some may offer budgeting tools or calculators that allow you to estimate retirement savings goals or evaluate loan options.

Low Fees

Online banks do not have the high overhead costs of traditional brick-and-mortar banks, so they can offer lower fees. This includes fees associated with account maintenance, transfers, and other banking services. Many online banks also waive these fees for customers who maintain high balances or meet certain eligibility requirements. In some cases, you may even find an online bank that will reimburse you for ATM fees incurred from using another bank’s ATM – a feature that is often unavailable at traditional financial institutions.

Additionally, high-yield savings accounts often come with no fees at all. This means you don’t have to worry about high monthly fees or balance minimums that can limit the amount of money you’re able to save. Many online banks also offer promotions from time to time, especially for expats, so be sure to keep an eye out for those as well.

Great Customer Service

Don’t let the lack of physical locations fool you – online banks offer great customer service. Most have dedicated customer care teams available 24/7 to assist with any banking questions or needs you may have. Plus, they often provide helpful resources like FAQs and external links to help you find answers to your queries promptly. This means that no matter what time it is or where you are, you will always be able to get the help and support you need when using an online bank.

Also, most mobile apps enable you to quickly get in touch with customer service easily and efficiently. This means that even if you’re not near a computer, you can still reach out for help on the go without having to worry about waiting long periods or being put on hold.

Enhanced Security

One of the biggest challenges expats face when managing their finances is security. Fortunately, online banks are designed with enhanced security features that provide an extra layer of protection for your financial information. Many use multi-factor authentication to ensure that your account information remains safe and secure. They also employ advanced encryption technology, so you can rest assured that your data is protected against hackers and other cybercriminals.

In addition, online banks often provide enhanced fraud protection as well as additional security features like two-step verification or biometric authentication. This means that if someone else were to try and access your account, it would be much more difficult for them to do so successfully.

Overall, online banking provides expats with a convenient, secure, and cost-effective way to manage their finances. With the features and benefits mentioned above, it’s easy to see why more and more people are turning to online banks for all of their banking needs. Plus, with so many options available on the market, it should be easy to find an online bank that meets your specific needs. So if you still haven’t made the switch, now is the perfect time to do so!

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.