Banking when abroad long term
Replies: 28 - Last Post: Oct 5, 2012 6:43 AM Last Post By: rayinkrabi
Aug 16, 2012 5:30 AM
Banking when abroad long termI'm with Co-Op, but I suspect that my account will have problems when I tell them I have no fixed address in the UK. I don't have A clue what to do regards banking abroad, do you set up an account there. If I'm working there, will this become a requirement for my pay packet.
Anyone got any pointers, any bank accounts that are perfect for this?
Aug 16, 2012 4:25 PM
1"Abroad" isn't a place! What happens with banking will depend on exactly where you are, but assuming you are going to one place to work, you can take it as given that your employer will require you to have a local bank account to pay your salary into. Can't you do a statement-stopper with your current bank? Or redirect your mail to a relative?
Aug 16, 2012 4:32 PM
2Abroad isn't a place, Asia is, and at the moment that's as defined as I git things. I'm sure my current account requires me to be resident in the UK, which I won't be, as I'm going to be living abroad.
Are you suggesting just fudging it and making out I've moved in with one of my parents? If I draw money out from a UK account, in Asia, will I face charges for doing so, is this how it works. If so, are there ways around this.
I don't know how long I'll be in each country, ideally I guess it will be as short as each teaching contract can be, then moving on for some variety. Sometimes to places where I won't work, but will still need to access my funds.
Aug 17, 2012 4:42 AM
3In my (different) experience, living overseas did not cause problems with my UK banks. However, I moved to France and had a permanent address. Maintaining existing accounts was no problem but I was unable to open any new UK accounts.
As I say, I moved to France and had a permanent address. In your position I would be thinking to telling banks that I was moving to country x, explain to them I will be finding somewhere to live once I get there and will let them know a.s.a.p of my new address (and maybe give them a parent/friends address in the mean time). Assuming they were OK with this I would ask them to put a note on my file that I would be living overseas and that they were fine with this (just so nobody at the bank decides to re-visit it later).
Initially I would call them to discuss without identifying myself (i.e. call and "it's a general question so no need to go through security etc. ..."). That way, if they end-up saying "No way" they have no notes on your file about your plans and their refusal so you can consider other options. Think in advance about where you would want them to send correspondence (as they might not like the costs/special case of it going overseas plus, when you move-on, you don't want in transit post with bank details turning up to an address you no longer live at in a country you have moved out of 'cos that you be a gift to fraud).
My experience of Co-op bank is that they are very helpful (though I have only used them for their credit card and only since moving back to the UK).
As far as using an account overseas - I never really used my UK accounts for routine stuff. I used my UK credit cards and always had a direct debit set-up to pay-off the balance each month (so those transactions were all within the UK). In fact most grief I had was with credit cards. I mainly used French bank accounts stuff but when I did use my UK cards in France on several occasions the card security people refused the transaction; so I'd call them and ask why and they would say because it's in France and I would ask them to read me my address and they would get all embarrassed and say the transaction would go through if tried again ... until next time when we had to go through it all again).
Don't forget HMRC as well. If you complete a tax return and suddenly stop then they wont forget you. when I moved to France I had to complete tax returns for 4 years until I argued with them that I should not need to any more. But if you have money in your K account and get any interest the banks will normally take the basic rate tax off your interest. As you will probably be getting paid less that UK tax threshold you can reclaim this when you complete your tax return. On some accounts you can fill in some form saying you are not a tax payer and get paid gross interest but I've never done this and think it might be just (some) savings accounts. But UK HMRC do not just give up on you and are quite keen on getting income from fines these days.
You might find that the "UK resident" means "UK tax resident" which might make things easier (when I was living in France permanently I was paying tax in both UK and France (deducting payments to one from the other so not double tax)). As I say, my experience was that to open the account you had to be "UK resident" but that you could keep it after that changed. But banks do differ.
If you are moving overseas long term, think about your tax residence etc. In the UK there used to be two HMRC expat helplines (one tax, other NI/pension/health) who were helpful and knew their stuff - worth a call to discuss thing with them.
Aug 17, 2012 5:14 AM
4Thanks for the long post. Not a bad idea speaking to my bank anonymously, so did this and was advised that it wouldn't be a problem keeping the account running without a fixed address. I asked about accessing funds and was advised there is a 2.75% handling fee, and 2% on top of that for cash withdrawals, so paying food good rather than withdrawing cash would just be the 2.75%.
Another option is to open an account overseas, which seems a necessity if working there, then transferring funds between the account also has a base fee plus percentage, dependent on where I am.
I've just founds the fees on-line and it says for cash withdrawals "2% of the value of the withdrawal or £2
(whichever is the greater)"
From VISA ATMs
"2.75% of the value of the transaction" for Debit and credit card transactions other than stirling, so seems the advice given or received in the call was a bit confused.
Normal transfers between accounts is 0.25% with a min charge of £13 and max of £35, making minimum transfers £5200 to incur the £13 and 0.25%.
Yeah, HRMC pay me working taz xredits at the moment, so not telling them I've left means they will pay me money they won't be happy about. Quite a few loose ends like this I need to tie up. Also NI leaves my account by DD, which I would want stopping
Aug 17, 2012 7:51 AM
5Two numbers I found useful (and helpful) were:
+44 (191) 203 70 10 (Center for Non-Residency (Contributions) (Inland Revenue))
and +44 (151) 210 22 22 (Center for Non-Residency (Tax) (Inland Revenue))
I've not used them for a few years but they should still work. These are the specialist International/Overseas/expat numbers. In the course of my long term planning, I called then to discuss the best options for my from a tax/residency/etc. basis and they were very helpful. UK tax people don't give up on you easily (but then neither do the French when you move out of France).
Aug 18, 2012 3:00 PM
6So you have figured out you need to change banks before you leave the UK, to one with no fees or exchange loading I presume. That's step one.
Now you wonder about fund transfers. Well frankly, unless you work somewhere for a year or more I doubt you will earn enough to have to worry about that. There are plenty of TEFL teachers who post here who can tell you how much you can expect to earn and how much the cost of living is likely to be. I've never heard of any having thousands of $ to transfer at the end of a few months and from your other threads I get the impression you plan to move as often as you can. Maybe I got that wrong.
See here is the thing Falcon. Either you are travelling or you are living and working somewhere. If what you want is to travel between stints of work then you aren't going to earn much ASSUMING you can find short term work. That is why I gave you the other link to look at. Because someone thinking they are going to work to fund travel is not the same as someone planning to live somewhere for a couple of years.
Now if what you want is to go and live in Thailand or Japan or China for the next 2 years then fine, you might be able to save enough by the end of that time period, to think about transferring money. In that case, you will find threads here on the subject and almost all of them are the same repetitive type. 'Woe is me, to transfer funds is going to cost me so much in fees and exchange. The banks are such rip-off artists. Does anyone know a cheap way for me to transfer X amount to my account back home?'
So here's the answer. No there is no cheap way. Even taking the cash in your pocket will result in you losing on the exchange when you take it to a bank back home. Just pick the way that is the least hassle and forget about how much it cost you.
Aug 18, 2012 8:51 PM
Aug 19, 2012 12:00 AM
Aug 19, 2012 4:11 PM
9FAlcon, you need an address and X amount when you OPEN the account but not after that. I have a UK account and have not lived there for 6 years now. My statements are sent to my current home in Canada and I do my banking online. I can also phone and bank by phone if I wish. They don't care where you go if there is cash sitting in the account.
Regarding transfers from the UK. I think you are daft if you think you need to transfer money from the UK. All you have to do is withdraw cash or pay for something using the cards I have just explained to looseleaf are the cards for a Brit overseas to have. If you need to get more than the daily limit you can withdraw from an ATM, then just go for several days in a row till you have enough. You can do that totally fee free unlike looseleaf would do using Lloyds.
There are countless numbers of expats who live off money from their home country and do so using their credit and debit card without ever opening a local bank account. The only reason to open a local acccount would be to deposit local pay. You certainly won't want to be opening a local account if you only plan to be there a few months.
When you write, "My penciled in plan is start in Thailand, find a postion and work for however long that position require me, but keeping it short as possible, then moving from there and doing some travelling, and at some point find another position in another country and repeat. after about a year find a longer term position and settle for at least a year, but mainly I am going to see what happens."
What I read is that you expect to find several jobs in several countries during the first year. That means 3 or more for less than 6 months each. If you have your degree and Celta then you will be a qualified TEFL teacher with decent credentials but you need to understand more about how the business works. There are no decent jobs that are likely to take you for less than 6 months at a time and contracts for 1 or 2 years are far more common.
So I'm trying to get you to see that worrying about transferring funds from one bank to another is not what you should be worrying about. It is your basic plan you need to be asking about. From my perspective it sucks. If you want to spend savings to do 6 months of travel before settling down to a real job in another country that's fine. But that's why I asked if you want to travel or live and work in a country. Finding work for 2 months and then travelling for 2 months and then repeating the process is not likely to happen in reality.
See here's the thing Falcon, you think you know the right questions to ask but you don't. You dwell on I haven't answered your questions as asked. Well, if you ask me for directions to a cliff top I probably wouldn't answer that either without first asking you why you want to go there.
You are making assumptions about finding work and travelling in between and looseleaf is making assumptions about you planning to live in a country. Your plan as outlined is not about living in a country it is only about visiting somewhere for a few months at a time.
I've told you the answer to how to handle your money. Now get your head around what your basic plan is and how feasible it is as presently envisioned. That's the real question, the money and banking is easy to answer.
Aug 19, 2012 4:13 PM
10Sorry, I haven't read through all the of the posts above so this may have already been answered.
I have been away from the UK for 7 years, and still use my UK bank accounts and credit cards (with HSBC and Nationwide). My registered address in the UK is at my parents' house. It doesn't seem to matter that I don't actually live there or pay a salary into my account each month. I just make sure I keep the accounts in the black. These accounts are very useful when traveling and using foreign ATMs, although of course I pay for the convenience in the form of bank charges.
When living longer term somewhere and earning money, as opposed to living out of a backpack, I have opened local bank accounts with no problems. The countries I have done this are New Zealand and South Korea. In both cases, it was very easy to open a bank account (it took something like 20 minutes each time).
Aug 19, 2012 4:46 PM
Aug 20, 2012 1:29 AM
Aug 20, 2012 2:50 AM
13Falcon - glad I could help. I didn't realise you were looking to transfer money over there, that's a bit of a different matter, but I hope setting up a bank account will be easy enough :)
Also, for what it's worth, my friend was in a similar situation and moved to Bangkok, did his TEFL course and had work more or less straight after until March this year (6 months total), at which point he moved on to another contract on a longer term basis. He could have moved on to another country, as you suggest you want to do. Don't let the naysayers get you down ;)
TravelInstyle46 - I don't take money out over here, as I mentioned in my post "I'm not withdrawing cash from overseas from my UK account"
A fool know's what to withdraw and what not to, lol. I don't need to withdraw money from the UK, I merely transfer it back there and pay for things with my credit card if I need to sort them out online as I don't have an appropriate debit or credit card here.
Your suggestion to Falcon didn't seem to be of much use - I would rather pay a small fee from my bank to take out large sums of money once every now and then rather than have to set up an account for a debit card and then a separate account for cash withdrawals (which requires going to London to setup!!)
Aug 20, 2012 4:24 AM
14There are countless threads here on the TT on the best way to handle money abroad. Most are addressing travel but the same applies to expats who continue to have funds in the UK. This is nothing new at all.
You have linked me to threads that did not address the questions. You seem incapable of understanding this thread is 'not' asking what is the best the way to transfer money, I'm not asking this. I asked 2 questions that are not asking this.
FAlcon, you need an address and X amount when you OPEN the account but not after that
Your a bit late with this answer mate, I've already established that, and answered both questions. For someone fed up with repetitive questions, in a threads that's not doing so you seem to be insistent on repetitive answers
Regarding transfers from the UK. I think you are daft if you think you need to transfer money from the UK
I think you are daft for advising me.
The only reason to open a local acccount would be to deposit local pay. You certainly won't want to be opening a local account if you only plan to be there a few months.
Yeah thank, like I said, I've already established this.
What I read is that you expect to find several jobs in several countries during the first year.
then you failed to comprehend the last part you quoted "but mainly I am going to see what happens." do you understand what he ment when someone says "My penciled in plan", this means it's completly open to change. I have no fixed plans and fully appreciate a learning curve in finding a place. I have no time restraints, I'm treating this as emigration, and seeing what happens.
So I'm trying to get you to see that worrying about transferring funds from one bank to another is not what you should be worrying about.
Whose worrying, I'm jot, this thread is 'not' about that. I think you need to go back and read post
See here's the thing Falcon, you think you know the right questions to ask but you don't. You dwell on I haven't answered your questions as asked
PMSL, you really are a fool, you dwell on giving information I'm not asking for, and on post 14 give answers I have already found.
I've told you the answer to how to handle your money.
which I never asked.
Read the rest of the thread, the OP needs help.
That's really funny mate, I happen to think you are the one 'in need of help'
I read this thread you linked me to
and saw this polite post
travelinstyle, have a look at your dozen previous posts and think about the amount of rants they contain... a bit harsh on the good people of TT maybe? Some people are new on the forum but with time they will mature, like all of us have, or abandon TT. I think people planning trips have enough stress to deal with already, so if we feel that the post is a repeat of others or stupid, we don't have to reply!
my two cents
to which I saw this rude reply
Your two cents is worth just about that much to me marinartw. But feel free to write better responses than I do, maybe that will balance things in your mind.
some up you input on this thread rather well. The fact you linked me to this, make me suspect you think I'm about half the age I'm really am.
Without a clue about me you keep giving me very poor advise and seem to be under some delusions of grandeur.
(3 star Hotel)
From US$51.55 per night
(3 star Hotel)
From US$72.73 per night
(3 star Hotel)
From US$53.06 per night