When it comes to managing finances as a US expat, having a banking solution that can work cross-border is very useful. Wise emerges as a standout option for several reasons. This article is inspired from my experience of banking needs in USD and EUR but I think it applies to other currencies as well.
Advantages
Wise allows funding the account in both USD and EUR. This means that whether I’m transferring funds from a US brokerage account, receiving my EUR salary everything will work seamlessly.
Sending money out in EUR is both fast and free, making it easy to cover expenses that require a wire transfer or to send money to family and friends. Additionally, with its US bank credentials, I can use it to pay my US credit card bill or connect to Venmo to send money to my US friends, if needed.
Moreover, Wise provides a compelling advantage over other debit cards by allowing you to spend any currency you have a balance in without incurring fees. In cases where you don’t have a balance in a specific currency, Wise only charges approximately 0.5% for currency exchange, which is significantly lower than the prevailing market rates.
As an added benefit, they will help you with changing the legal residence of your account without needing to close it and open a new one. This is convenient as it reduces the hassle of this process, especially for individuals who plan to move between different countries in a short timeframe.
Drawbacks
There are a few drawbacks, of course; nothing is perfect. Most notably, it does not support cashing US checks. If you need this service, you must use another bank.
Additionally, it does not provide every kind of service that a bank offers, such as loans or mortgages. Unfortunately, if you require these services, you will also need to look elsewhere.
Pro tips
After using Wise as bank account for a few months, I have a few pro-tips to share as well.
It’s a good idea to push money to a Wise USD account instead of pulling it, as this can help to avoid excessive ACH fees. Wise charges round 0.13% fee for each ACH debit which is a bit high given that other US institutions do this for free.
When relocating to a new country, it’s advisable to consider obtaining a new Wise card to enhance card acceptance. Despite the widespread acceptance of Visa and Mastercard, using a foreign card may come with limitations. Acquiring a locally issued Wise card can improve acceptance and streamline financial transactions in your new location, optimizing your expat experience.
Conclusion
In conclusion, in my opinion, Wise stands out as an exceptional choice for US expats. It offers the convenience of multi-currency functionality, effortless relocation management, and efficient, cost-effective money transfers.
Spaghetti Finance 