What you need to know before opening a foreign currency account
Most US banks do not offer checking accounts denominated in foreign currencies. If you receive income in another currency or need to hold money abroad, your options are limited to a small number of banks, online money transfer services, and international financial institutions. The account you open depends on where you live, which currency you need, and whether you want to keep money in the US banking system or abroad.
A true foreign currency checking account — one where you deposit and withdraw in euros, pounds, pesos, or another currency — is rare in the US. What banks actually offer falls into two categories: accounts that let you hold foreign currency but require US dollar transactions, and accounts held at foreign banks that you can access from the US. Each has different fees, exchange rates, and withdrawal options.
Key Takeaways
- Most major US banks do not offer foreign currency checking accounts; you will need to use a specialty bank, online money transfer service, or a foreign bank account.
- Some US banks let you hold foreign currency in a savings account but require you to convert to dollars to write checks or use a debit card.
- Online money transfer platforms like Wise, OFX, and Remitly offer multi-currency accounts that function like checking accounts for international transfers and bill payments.
- Opening an account at a foreign bank from the US is possible but requires proof of identity, a US address, and sometimes a minimum deposit that varies by country and bank.
- Exchange rates and fees vary widely — compare the cost of converting currency at each service before you commit.
US banks that hold foreign currency
A handful of large US banks offer foreign currency accounts, but they work differently than a standard checking account. Citibank and Bank of America both allow customers to hold balances in multiple currencies, including euros, British pounds, Canadian dollars, Japanese yen, and Swiss francs. However, you cannot write checks directly from these accounts or use a debit card in the foreign currency. You must convert the money to US dollars first, which triggers an exchange rate and a conversion fee.
These accounts are structured as savings accounts or money market accounts, not checking accounts. They work best if you receive regular payments in a foreign currency and want to hold that money without converting it immediately. When you need to spend the money or transfer it, you initiate a currency conversion through the bank's website or by phone. Citibank charges between 1% and 2% for currency conversion, depending on the amount and the currency pair. Bank of America's rates are similar.
Smaller regional banks sometimes offer foreign currency services, but availability depends on your location and the bank's partnerships abroad. Call your current bank and ask whether they offer a foreign currency account or a multi-currency savings product. If they do, ask for the full fee schedule — conversion fees, monthly maintenance charges, and minimum balance requirements — before you open one.
Online money transfer services with multi-currency accounts
Wise (formerly TransferWise) is the most widely used option for people who need to hold and spend money in multiple currencies. You can open a Wise account from the US, add a US address, and receive an account number and routing number for deposits in multiple currencies. The account functions like a checking account for international transfers and bill payments, though you cannot write paper checks. You can link a debit card to the account and spend money in the currency you hold.
Wise's main advantage is its exchange rate. The service uses the real mid-market exchange rate — the rate banks use with each other — rather than a marked-up retail rate. This saves money on every conversion. There is no monthly fee for holding the account, and you pay only when you convert currency or send money. A typical transfer costs between 0.5% and 2% depending on the amount and currency pair.
Remitly and OFX offer similar multi-currency accounts aimed at people sending money internationally. Both let you hold balances in multiple currencies and spend using a debit card. Remitly charges a flat fee plus a percentage for transfers; OFX charges a percentage only. Neither offers the mid-market rate that Wise does, so your exchange rate will be slightly higher. These services work well if you send money regularly to family abroad and want to avoid repeated conversion fees.
All three services require identity verification — a government ID and proof of your US address. The process takes a few minutes online, and your account is usually active within one business day. None of them require a minimum deposit.
Opening a foreign bank account from the US
You can open a checking account at a bank in another country while living in the US, but the process is slower and the requirements are stricter than opening a US account. Most foreign banks require you to visit a branch in person or work through a US correspondent bank. A few banks in Canada, Mexico, and the UK accept online applications from US residents, but they ask for more documentation than a domestic account would.
What you will need depends on the country and bank, but typically includes a passport or government ID, proof of your US address (a utility bill or lease), and sometimes proof of income. Some banks ask for a minimum deposit ranging from $500 to $5,000 USD equivalent. The application process takes two to four weeks because the bank must verify your identity through international channels and comply with US tax reporting rules — specifically, FATCA (Foreign Account Tax Compliance Act), which requires foreign banks to report US account holders to the IRS.
Once the account is open, you can deposit money by wire transfer from a US bank account. Withdrawals work through ATMs or debit cards, though ATM fees can be high if you withdraw frequently. Some foreign banks charge monthly maintenance fees ranging from $5 to $20 USD equivalent.
This route makes sense only if you live part of the year in another country, receive regular income there, or need to pay bills in that country's banking system. For most people receiving foreign currency income in the US, an online money transfer service is faster and cheaper.
Comparing costs: exchange rates and fees
The true cost of holding foreign currency is not just the account fee — it is the exchange rate you get when you convert money. Banks and money transfer services make money by offering you a rate slightly worse than the real market rate. The difference is called the markup or spread.
| Service | Account Fee | Exchange Rate | Transfer Fee |
|---|---|---|---|
| Wise | None | Mid-market (best) | 0.5%–2% |
| Remitly | None | Retail (marked up 1%–2%) | Flat fee + 1%–2% |
| OFX | None | Retail (marked up 1%–2%) | 1%–2% |
| Citibank | Varies by account type | Retail (marked up 1%–2%) | 1%–2% conversion fee |
| Bank of America | Varies by account type | Retail (marked up 1%–2%) | 1%–2% conversion fee |
If you convert $10,000 from US dollars to euros, the difference between Wise's mid-market rate and a bank's retail rate can be $100 to $200. Over a year, if you convert money monthly, that difference adds up. Before you open an account, use a currency converter to check the real mid-market rate, then ask each service what rate they would give you for your specific amount and currency pair. The service with the lowest total cost — account fees plus conversion fees plus the exchange rate markup — is the one to choose.
How to set up direct deposits and bill payments in foreign currency
If you receive a salary or regular payments in a foreign currency, you can set up direct deposit to a multi-currency account at Wise, Remitly, or OFX. You will need to provide your employer or payer with your account number and routing number for the currency you want to receive. Wise and OFX both provide these details in your account settings.
Direct deposits in foreign currency typically arrive within two to five business days, depending on the country where the payment originates. The money lands in your account in the currency it was sent, so you avoid an immediate conversion fee. You can then hold the money, convert it to dollars when you need to spend it, or transfer it to another account.
For bill payments, Wise and OFX both let you set up automatic transfers to pay bills in foreign countries. You link the account to a biller's bank details, and the service handles the currency conversion and transfer. This is useful if you have ongoing expenses abroad — rent, insurance, loan payments — that you want to pay from your US income.
Tax reporting and FATCA compliance
If you open a foreign bank account, you must report it to the US government. US citizens and permanent residents are required to file a FBAR (Foreign Bank Account Report) with the Treasury Department if the total value of all foreign accounts exceeds $10,000 at any point during the year. The deadline is April 15 of the following year, though you can request an extension.
Multi-currency accounts held at US-based services like Wise, Remitly, and OFX do not require an FBAR because they are US accounts, even though they hold foreign currency. However, if you hold a checking account at a foreign bank, you must file the FBAR. Failure to file can result in penalties of $10,000 or more per violation.
You do not need to report the account to the IRS separately if you file the FBAR, but you do need to report any interest or income the account generates on your tax return. A foreign checking account typically earns little or no interest, so this is usually not an issue. If you are unsure whether you need to file an FBAR, contact a tax professional who works with international clients.
Frequently Asked Questions
Can I write checks from a foreign currency account?
Not from a true foreign currency account. US banks that hold foreign currency require you to convert to dollars first. Online money transfer services like Wise do not offer paper checks at all — you spend using a debit card or make electronic transfers. If you need to write checks regularly, a standard US checking account in dollars is your only option.
What happens if the exchange rate changes after I convert my money?
Once you convert money, the rate is locked in. If you hold the money in the foreign currency and the rate moves in your favor, you benefit. If it moves against you, you lose. Most people who receive regular income in a foreign currency convert only what they need to spend in the next month or two, and hold the rest in the original currency to avoid locking in a bad rate.
Do I need a US address to open a foreign currency account?
Yes. US banks and online money transfer services require a US address to open an account. If you are a US citizen or permanent resident living abroad, you can use a US address where you receive mail — a family member's address, a mail forwarding service, or a previous address where you still receive statements. Foreign banks have different rules; some accept a US address, others require a local address in the country where the account is held.
Can I transfer money between a foreign currency account and my US checking account?
Yes. You can wire money from a foreign currency account to a US bank account, though the receiving bank will convert it to dollars and charge a wire fee (usually $15 to $50). The reverse is also possible — you can wire dollars from your US account to a foreign currency account, and the receiving service will convert it. Wise and OFX both allow this, and the fees are lower than a traditional wire.
What if I need to close the account?
Online money transfer services let you close your account anytime with no penalty. You can withdraw any remaining balance by wire transfer to a US bank account or by debit card withdrawal. Foreign banks may require you to visit a branch in person or submit a written request. Always check the account agreement for any closure fees or minimum holding periods before you open the account.