What is international banking?

Key takeaways

• International accounts allow you to transact in multiple currencies

• If you live in a different country, you may need a local bank account

• There are usually fees to pay for opening and managing an international bank account

• You’ll have quick and easy access to foreign exchange when needed

If you need to send money to someone in a different country, or you live outside of the UK, you may benefit from using an international bank account. Here we look at how they work, how much they cost, and the pros and cons of using one.

What are international bank accounts?

International bank accounts are specialized accounts offered by offshore divisions of UK high street banks and other financial institutions. They are tailored to meet the needs of those who require access to funds across different countries. These accounts come with a host of benefits, including:

• Overdraft facilities

• Debit cards for ease of access

• Cheque books in some cases

• The option to select the currency of your account

Who might need an international bank account?

There are many reasons why an international bank account may be useful, including the following examples:

• British expatriates living in the United States who need to pay in dollars

• A UK business owner who regularly sells in Spain and needs better access to euros

• A family member who sends money regularly to international bank accounts, such as a parent with a child at university in France

• Those living out of the UK who have a UK pension

What are the benefits of an international bank account?

Here are some of the perks that may come an international account:

• Added services like concierge or travel insurance.

• 24-hour banking, allowing you to manage your money at any time, from anywhere in the world.

• The use of linked debit or credit cards in the countries covered by your account.

• The ability to set up international payments and trade in various currencies.

• Cheaper exchange rates or fee-free withdrawals

Can I open an international bank account?

There are lots of international bank accounts to choose from, but most charge fees and may have eligibility criteria. This could include the following:

• Your income

• The amount of money you deposit into the account each month

• Where you live

• Your age

• Your credit history

To maintain these accounts, you're often required to keep a high minimum balance, or you may face monthly fees that can range from £5 to £15. This is something to consider if you're looking at the practicality and affordability of opening one.

What you'll need to open an international account

The requirements for opening an international bank account can vary depending on the country, the provider, and the specific deal. However, there are some common criteria you'll need to meet:

• You must be at least 18 years old

• Provide proof of identification

• Provide proof of address

• Show proof of income to demonstrate the ability to pay any applicable monthly fees

What do I need to make international transactions?

When it comes to international transactions, here's what you'll need:

• A SWIFT code, which is typically found on your bank statements

• An IBAN number, especially if you're dealing with transactions in the European Union. This can also be found on your bank statements

• The details of the person you’re transferring money to

Rebecca Goodman
Personal Finance & Insurance Expert

Our expert says...

"There are many reasons why an international bank account could help you, if you regularly travel abroad, for example, of if you’ve moved to a different country. They work in the same way as regular current accounts but can make it easier to transfer your money to a different currency and some come with extra benefits such as travel insurance. However, there may also be fees to consider and it’s important to look at the rate you’ll be charged for changing your money over."