Best US bank accounts for expats?

There is a little something called the 'global ATM alliance' http://en.wikipedia.org/wiki/Global_ATM_Alliance, and it allows people in the alliance to withdraw money fee-free worldwide.

With this in mind, one of the best US accounts to use in the UK is from Bank of America, as you can withdraw money from any Barclays ATM without fees, and you get great wholesale rates on the conversion. BoA accounts, if opened online, do not have any maintenance fees or balance requirements, so it is also a great option if you are just visiting the UK on vacation and don't want to mess with traveller's cheques.

Another bank that I really like is Ally (formerly GMAC). This bank is completely online, and they just started offering a checking account with no fees or balance requirements, and it pays interest. They absorb all ATM fees, but you will be charged 1% from Visa if you use your debit card to withdraw money in the UK. Another thing I like is you can link your savings account to your checking account so that it acts as an overdraft, and their savings rates are some of the best in the country.

These accounts can be seen as 'add-ons' to your main accounts. For instance, like many people on this board I have an account that my mom has access to that's with Wachovia that I use as my main account, but it's of no use in the UK, even if there were rumours of an international branch somewhere in London.

I forgot to mention Capital One US credit cards. While not bank accounts, Capital one cards have no fees when used in the UK, or anywhere for that matter. It is the only card in the US to do this, so this can also be a good option for use in the UK.

You won't find that info anywhere on their website, and probably won't get it out of them if you ring, but it surely is there in the T's & C's once you open an account.

But don't get them confused with Capital One UK. Capital One UK charge the usual 2.5% fee if used overseas.

I've definitely got to second what Stuart posted; I took similar advice from this forum, back when I first moved here in 2008, and both the Capital One and BofA accounts have made US/travel finances simpler and cheaper. Moving money into the country with BofA was remarkably convenient, especially after first arriving and when we didn't have a UK account, and our Cap One card is the one we take out whenever we're on holiday. If you do open a new BofA account, though, make sure to do it online, so that you can avoid the monthly charges.

Use USAA if you qualify.

USAA is indeed the best bank for overseas use, especially since checks can be deposited by scanning and emailing although that "remote deposit" service is available only to USAA members (present and former military and Foreign Service, and offspring of members, etc.)

Anybody can open a bank account, but only members may borrow:

"Who can have an account at USAA Federal Savings Bank?

"Anyone can open a deposit account at USAA Federal Savings Bank. This includes checking, savings and CD accounts. Our lending products, including credit cards and loans, are currently available to members who are eligible for our auto/property insurance."
https://my.usaa.com/inet/ent_utils/McStaticPages?key=advice_200907_QandAs_Bank_Webinar [nofollow]

There is a little something called the 'global ATM alliance' http://en.wikipedia.org/wiki/Global_ATM_Alliance, and it allows people in the alliance to withdraw money fee-free worldwide.

Good idea starting this thread!  I know I've seen many people asking these sorts of questions.

I myself, have always used my BoA debit card at Barclay's in the UK, and was able to use it all over Europe because of the global alliance.  But, when I don't have cash, Capital One definitely comes in handy!  Like you said, I only found out about this by reading the terms and conditions associated with my card. 

Good idea starting this thread!  I know I've seen many people asking these sorts of questions.

I myself, have always used my BoA debit card at Barclay's in the UK, and was able to use it all over Europe because of the global alliance.  But, when I don't have cash, Capital One definitely comes in handy!  Like you said, I only found out about this by reading the terms and conditions associated with my card.  

It only works in the particular bank's "home" country though. For example, fees are only waived for withdrawals from Barclays atms in the UK, not, for example, in Ireland. There are other members of the alliance that can be used in a few other European countries; see the table in this link:

http://en.wikipedia.org/wiki/Global_ATM_Alliance#Coverage_Areas

Definitely recommend the BofA withdrawing through Barclay's route.  Make sure you open it online to avoid fees.

USAA is indeed the best bank for overseas use, especially since checks can be deposited by scanning and emailing although that "remote deposit" service is available only to USAA members (present and former military and Foreign Service, and offspring of members, etc.)

I'd go so far as to say USAA is the best US bank period. Also, while only military members (active or retired) can become an initial member, anyone related to them -- or subsequent members (i.e. in-laws) -- can become members. For instance, my wife's father is in the military, so he joined...then my wife joined, then I joined. Not only does USAA not charge for using any ATM in the world, they also refund up to $15 a month on other banks's ATM surcharges. Up until December, they didn't have a fee for the currency exchange (e.g. if you use an ATM here, they just converted at the nominal exchange rate). Even afterwards, the fee is ridiculously small (but I can't find evidence of it as the £10 withdrawal two weeks ago was at the low end of the exchange rate for the week).
Also, if you can get a USAA membership, they have cheap insurance (well, at least renters' and auto) which can work over here (via a company here).

Also, if you can get a USAA membership, they have cheap insurance (well, at least renters' and auto) which can work over here (via a company here).

Another vote for USAA for banking and insurance.  My wife backed our car into the neighbor's car last year.  The damage to their car wasn't major, but was still going to cost £250 to fix.  When I called USAA to report the accident, they said they wouldn't put our rates up for such a small accident. 

Then the representative asked if we were in the accident forgiveness program.  I said I'd never heard of it, and he explained that people in the program could have one auto accident every three years without affecting their insurance rates.  I asked how much that'd cost, and the answer was an extra $1 per year (!).  So I signed up for that.

Next the rep said he had a Miss Jones and a Mrs Amoscato listed as additional insured people.  I explained that Miss Jones had recently become Mrs Amoscato, and he said "Oh, you're married now?  That's going to lower your rate."  It lowered it by about $100/year.

So as a result of bumping into the neighbor's car, we got $100 off of our car insurance and we can now wreck a car every three years.  USAA is a great company.