The Best US Bank Account for Global Citizens

While the US banking system may have its challenges, utilising it correctly can unlock unique opportunities that you’re unlikely to find anywhere else in the world and with it, you get access to exclusive investment opportunities, privacy and much more. 

In this comprehensive guide, we’ll explain what the American banking landscape is like today and why non-Americans would benefit from US bank accounts. 

We’ll also explore how Americans can still have a global footprint while retaining the comforts of home, at least where banking is concerned.

If you want to take the next step and learn about our bespoke offshore tax planning, financial services and asset protection strategies, get in touch here.

How to Choose the Best US Bank Account

The United States, with its robust financial system and diverse banking options, can be a surprisingly attractive place to hold a bank account, even for non-residents. 

That’s discussed in detail in the guide below, but first, let’s outline the top things to keep in mind when looking for the right US bank account:

• Understand the pros and cons of US banking: While US banks offer unique opportunities, particularly for non-Americans, they come with challenges like strict tax regulations and poor online banking services for global citizens.
• Choose the right-sized bank: Avoid overly large banks that impose rigid policies or small institutions that may shut down accounts for foreign transactions. Mid-sized banks with international exposure offer a balance of flexibility and reliability.
• Security is paramount: Not all US banks provide equal security, and smaller institutions may be risk-averse, closing accounts without warning. Prioritise banks with strong fraud protection and stable operations. 
• Do your homework: To navigate the diverse US banking landscape, focus on finding a bank that aligns with your global financial strategy and offers personalised service.

US Banking, Taxes and Global Reporting

There are some major caveats to sticking with the US banking system. While we do have a certain level of approval of the US banking system, it comes with some reservations. 

Chief among them is that the American citizenship-based tax system is overly draconian and takes money from every US citizen, even if they have never been to the country in their entire life. 

Besides, ever since FATCA provisions became the norm, at least for the US, bank secrecy has been dead. 

Hence, the offshore world has largely moved from hiding money abroad to being strategic and transparent about one’s funds.

Nowadays, because of these new regulations, many banks around the world are forced to ask the ‘who, why and where’ if you do anything remotely out of the ordinary with your money. And all this began when the US started leaning on these banking institutions. 

In an ironic twist, though, the US has minimal reporting obligations to other countries. Beyond the Intergovernmental Agreements (IGAs), US banking information is generally kept within US shores. 

This means that, at least for non-Americans, there are some significant benefits to banking in the US.

Problems with the US Banking System for Global Citizens

Living an offshore lifestyle comes with unique banking needs. And, if you rely on US banks, you may find they fail to deliver on some of the most important areas for global citizens.

Online Access

If you live a global lifestyle, you need easy and reliable access to online banking. That’s essential.

However, US banks haven’t always been the best when it comes to things like online access. 

A while ago, we had a client who had their online banking frozen because they tried to log in from a different country — even though it was a country in the European Union.

These limitations partly explain the rising popularity of third-party money transfer apps in the US. 

But, while these apps offer convenience, they may come with higher fees and limited functionality compared to comprehensive online banking platforms.

The biggest dilemma with this situation is that US banks always think the solution to such problems is for you to show up at the branch with your debit card. 

It’s as if they don’t understand that someone on the other side of the world wouldn’t find it inconvenient to travel all the way back to the United States just to reboot their online banking or reactivate a debit card.

The moral of the story here is that you’ve got to find the right banks. Most US banks stink if you’re someone with a global perspective. Chase is one of the worst (although their merchant accounts are quite good). 

If most of your day-to-day life happens in the US, you won’t really feel much of a difference between good and bad banks, though, as they more or less provide comparable services. 

The problems arise when you start behaving in ways that banks don’t approve of. 

Security

Not all US banks are safe, and some are more prone to fraud charges than others. So, security should definitely be near the top, if not at the top of the list. 

Fortunately, we’ve already made a list of the top five safest US banks for you, as not all institutions are equipped to deal with the protection required when moving to foreign locations.

Because of all this, credit unions and other small institutions are extremely risk-averse. As soon as you start doing anything out of the ordinary and dealing with overseas transactions, they may close your account without any prior warning.

The last thing you want is no access to your bank, combined with a poor online banking system, while you’re miles away from the US on a small island.

Global Banking Infrastructure

A large part of these problems US banks face comes down to the fact that smaller US banks simply don’t all have the infrastructure ready for a global challenge. 

Large retail banks, on the other hand, take the fast-food approach to things – everyone gets the exact same product. And beyond some superficial customisation, they expect a certain type of behaviour from you. 

If you don’t operate in the way that they expect, prepare yourself to be hassled and harangued for any minor deviation from the norm. 

That is unless you’re wealthy enough to have your own private banker in those institutions.

Given these potential challenges, it’s generally advisable to exercise caution when dealing with large banks. 

Finding the Best US Bank Account: Take the Middle Ground

When choosing a US bank as a global citizen, it’s tempting to gravitate towards the biggest names, assuming they offer the greatest stability and resources. However, these institutions often come with rigid policies and impersonal service. 

On the other hand, you should also avoid banks so small that they will have a heart attack whenever you attempt to move sizable amounts overseas.

The sweet spot lies in partnering with a mid-sized bank, preferably one with established international operations.

If you have the money, chances are you will be able to get a connection with someone high up on the food chain, and they will be able to clear any problems before they arise for you.

We won’t name our specific choice of US bank account, as the financial institution is by invitation only and we were asked not to advertise them. But we will point you to the likes of the Bank of China in New York. 

We’re saying this for the Americans in the audience, as anyone with an Asian background would laugh at the suggestion that the Bank of China is ‘mid-sized’.

This bank is undeniably massive, but only in China – its presence in the US is much smaller compared to the major players here.  

In other words, you can have the best of both worlds with Bank of China and other financial institutions of that nature. 

Unless you appear on the Forbes list, it’s unlikely that the upper management of the bank would talk with you in China. But they have the financial might and infrastructure to fulfil any request. 

Whereas, if you’re a decently sized investor in the US, it wouldn’t be out of place to be able to have a direct line with their office in New York to resolve any matters. 

Choose a bank that will take the time to get to know you so they can comfortably keep your account open while being compliant with Know Your Client (KYC) rules.

What about Online-Only Banks?

Online-only banks have surged in popularity in recent years due to features like high interest rates, minimal fees and convenience. 

So, surely they’re the best option for global citizens?

We say, don’t believe all the hype of online-only banks. In some cases, though not all, these fintech startups are more trouble than they’re worth. 

When dealing with them, it often becomes a question of ‘Can a foreigner open a bank account in the US?’

Traditional banks don’t tend to have such reservations. But these startups are often operating on razor-thin margins, and they’re at the regulatory knife’s edge. 

They like to present a very open and global perspective. Charles Schwab, for example, attracts the attention of global travellers because they don’t have ATM fees. 

But this is a bit of a facade – they’re perfectly fine with business travellers as long as they always come back to the US and conduct most of their transactions there.

Hence, if you don’t actually adhere to their ideal client avatar, they might also close their doors to you.

Our one exception is Capital One, which seems to be better than average. But, we would still recommend going with institutions where you can put a face behind the brand name.

The world isn’t run on brands and corporate slogans but on people interacting with each other. 

That said, the digital bank market is experiencing enormous growth, with the market showing a steady annual growth rate of 4.76% from 2024 to 2029. 

With this kind of growth and widespread adoption should come continually improved banking services (in theory). 

If you think these banks make sense for you, do your homework on them, as you might find a good fit.

The Benefits of a US Bank Account

Here’s the bottom line – the US is the world’s largest tax haven. 

If you’re a US citizen or resident, you may not understand or like that because you are taxed for almost everything. 

However, the US can be a tax haven for non-citizens living abroad.

As hinted at before, the US is under no obligation to share your financial data with the rest of the world. As a consequence, it can well work like the offshore accounts of old, while the Caribbean and the like are suffering gravely under their reporting obligations. 

All the major institutionalised tax havens like the United States and the Netherlands (the ones nobody thinks of as tax havens) are cracking down and putting the squash on these tiny little islands. It’s not just about chopping down on tax havens in general – it’s also a competitive move. 

If offshore corporations from places like Seychelles, Nevis and Panama are rejected from being able to get bank accounts or blocked from doing some day-to-day company operations, the big tax havens win.

There are different ways to structure your business and banking to make this work to your advantage. And there are certain banks you should probably want to go to. Don’t just go to your local branch. 

If you’re planning on doing a more robust business, you should probably choose a higher-brow bank that’s more open to wire transfers and other international-level operations.

Overall, when you have a US bank account, you don’t have to worry about US intermediaries because you’re already in the United States. You may be sticking with the bully to keep yourself safe, but at the end of the day, business is business.

You might be surprised to learn that opening a US bank account as a foreigner and non-resident is relatively straightforward.  While specific requirements vary between banks, the process is generally well-defined and accessible.

Why US Expats Should Keep Their US Bank Account

Often, when we talk with our US clients and start designing their offshore strategy, they are very protective of their US Bank account. 

It gives them some semblance of normalcy and allows them to pay bills and other expenses that are incurred in the US.

Not only that, but they have often worked hard to get their Amex platinum card, Chase Reserve Card, Black Cards and so on, and thus, there is some emotional investment for the US bank account itself. 

Fortunately for them, we’re not going to suggest cutting them.

In fact, it might be worth keeping them. 

Indeed, it’s unlikely that they would find comparable accounts in foreign markets. We’re all for keeping the things that make your life better. 

It’s also worth mentioning that the Federal Deposit Insurance Corporation (FDIC) guarantees deposits of up to US$250,000, which is nearly double the depositary insurance that you would find in other developed economies like the EU and UK (€100,000 and £85,000, respectively).

Americans are limited in how much they are able to structure in foreign locations and truly benefit from tax-neutral environments. 

Hence, if they aren’t going to fully commit to relinquishing their US citizenship, it often makes sense to keep a portion of their cash wealth within an American jurisdiction.

If there is no hiding from the taxman, you might as well keep it easily accessible for your day-to-day use.  

Tech and Innovation in US Banking

US banks are stepping up their game when it comes to technology. They know they need to cater to a global crowd, and they’re doing it with some seriously impressive innovations.

From advanced mobile apps with real-time transaction monitoring to AI-driven fraud detection systems, new banking tech is all about improving security and convenience for global clients. 

Many banks now offer global transfer services integrated directly into their apps, which bypasses traditional wire transfer fees and payment delays. 

Today’s digital-only banks are also pushing the envelope with increasingly user-friendly platforms, easy account setups and tools like multi-currency wallets. 

You may not get a face-to-face connection with these banks, but we can’t deny that their digital banking options are impressive.

While these innovations make banking more accessible for expats, choosing a bank that balances the latest technology with reliable human support is still key.

The Best US Bank Account for Global Citizens: FAQs

Finding the Best US Bank Account as a Global Citizen

To benefit from the immense potential of US banks while limiting or reducing the downsides, you need to do your homework. 

The US has a very diverse set of banks, from multinational behemoths that will see you as just another number on their spreadsheet to local credit unions that get spooked if they see one too many zeroes in your account or foreign transactions.

Ideally, you would want to find a mid-range bank that you can create a personal and direct contact ‌with. Having a bank that gels well with your global offshore strategy is crucial both in the short and long term. 

If you want help designing your offshore plan – US banks included – feel free to reach out to our team here.