Americans who live abroad have an unusual and costly problem: Financial institutions are reluctant to take their money. But with a new account created by the State Department Federal Credit Union and the nonprofit American Citizens Abroad, they now have a place to do their banking.
A federal law that went into full effect in 2014, which was designed to deter money laundering and tax evasion, imposes tough reporting requirements on foreign financial institutions that hold U.S. assets.
Rather than risk a stiff penalty—30% withholding on their transactions in the U.S.—for violating the rules, many foreign banks have refused to do business with American expatriates. Making matters worse, some U.S.–based financial institutions have restricted services or closed accounts for Americans who don’t have a permanent U.S. address.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The SDFCU has experience working with expats; for years, it has offered accounts to Americans who work at embassies and other locations abroad. Under an agreement reached with ACA last year, any member of the association is eligible to open an SDFCU account (membership in ACA costs $70 a year, $55 for seniors). You don’t need a U.S. address to open an account, and you don’t have to be a federal employee.
Expats who open the new accounts may conduct transactions all over the world in U.S. dollars, says Mike Morris, director of member engagement for SDFCU. In addition, account holders can pay their U.S. taxes electronically, and retirees can arrange for direct deposit of their Social Security benefits.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
End of Expanded Premium Tax Credit Would Drive Uninsured Rates HigherTax Credits Millions of people could become uninsured if Congress fails to extend the enhanced premium tax credit.
-
Over 162,000 Dreamers Cut Off From Affordable Care Act InsuranceHealth Insurance A federal court in North Dakota has blocked ACA coverage for DACA recipients in 19 states. Here's what it means.
-
2025 Open Enrollment: Some DACA Recipients Can Purchase Affordable Care Act Health Insurance
Open Enrollment Your eligibility to purchase health insurance from the federal marketplace may have changed. Here's what you need to know.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
Medicare, ACA Call Center Workers To Hold Another Protest: What To KnowMedicare and Obamacare call center employees plan another protest, this time in Washington, DC on December 12.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
