Looking for guidance on keeping US bank accounts while moving to the UK

Hi all,

Even to me this post is a bit nebulous, but I could really use some words of wisdom and/or experience in this area.

I'll be moving over to the UK on October 1st on a fiance visa and I'm wondering what steps I should take while I'm still here in the US for the next 2 weeks.  I have checking and savings bank accounts with CapitalOne 360 which I'm so far happy with, but I haven't let them know about my upcoming move - should I?  I am able to use my daughter's address as mine for a US presence, but I'm not certain that's a good idea in the long run.

Soooo, my questions are:

1)  Is it a good idea to keep a US address for my US financial accounts?

2)  What are the possible repercussions in doing so (keeping a US address).

I suppose my attitude is take little steps and feel my way into the future, but is there something that really should be done before I leave the US so I don't cause myself future headaches (or more headaches than necessary anyway  ).

Thanks for any thoughts on the matter......

My US accounts go to my parents US address.  I have found this great for sending gifts, etc.  Often online they want both the billing and shipping address.  If your billing address is a foreign address it may not work.  I get my statements online. 

There is no complication in keeping your accounts to a US address.  The UK doesn't care.

If you are okay with the idea, I would recommend adding your daughter as a signer on your account.  Having my mom on my account has saved me a couple of times.

I changed my US accounts to my UK address. (Part of breaking ties to my former state .... proving change of domicile for state tax purposes.)

My bank had no issues with the address change.

Good point from Vadio.  I'm from Florida where there is no state tax.

If you have a credit card through that account then it may be a good idea to let them know that you'll be in the UK for long periods of time.  Even though I have a UK bank account and debit card, I always inform my bank when I will be out of the country so that my credit card is not blocked should I need to use it.

I have 2 US bank accounts and they both are still at a US address.
I also have a UK bank account and I transfer money back and forth between the US-UK banks with Paypal. 
All my credit cards are still at the US address too. 
I make notifications online that I will be out of the country on the one(s) I might use in the UK, though I do have a UK credit card that I use in the UK.

To be honest, now that I think of it, I haven't changed anything "important" from my US address to my UK address at all and everything has been ticking over just fine! 

Thanks for all the input everyone!  It sounds like there isn't anything that has to be dealt with before I leave and that financial accounts can be adjusted in the future as needed.  I'll have to think about getting my daughter as signatory on a checking account, as that has both risks and benefits.  I expect I'll eventually want accounts and credit cards etc. in both the US and UK. 

Good point about state taxes and domicile, vadio.  The tax implications could end up pushing my hand, since my home state is one that likes to tax you as soon as you look in their direction! 

I'm the type who likes to adjust slowly to a new situation.  *cough*  Well, I used to be anyway...... funny thing about love and jumping in the deep end.   

Thanks for the reminder to let my credit cards know I'll be in the UK, Beatlemania - that is important! 

I've retained one CC issued in the US which I've held since 1990; I changed that address to the UK as well. My IRA accounts also show a UK address. Frankly the only reason I retain a US bank account is to have somewhere for my IRA distributions to be deposited....I could take distributions now, but will likely wait another 3 years until I reach the magic age where I must take the required minimum distributions.

My former state is also one that likes to hold onto you forever, and chief among the ways they use to "prove" continuing ties is financial accounts. In October 2013 we asked for a ruling from the Tax Commissioner on change of domicile (we moved back in 2011). SIX, yes SIX months later, we got a letter telling us that we had a 'burden of proof' and asking for everything bar the color of our undies. It started with a 7 page questionnaire, along with a monster list of documents.

We provided everything (a roughly 2 inch thick pile of paper) that was available along with an explanation why I (not yet a citizen) am not registered to vote and therefore could not provide a voting record. The decision was supposed to be made in 120 days.

Well----no decision yet. I assume they are still trying to find something that ties us to the state.

BTW - we also informed the county board of elections and cancelled our driving license - and got the official letters back stating this had been done due to a permanent move outside the US.

DH & I did what worked best for us. He is a dual national, and I hope to be very soon. Given our age, he will likely never return to the US and I suspect I won't either (aside from visiting family). Other folks may elect other options; it's an individual decision when all is said and done.

I've kept a checking account at a national bank in the States tied to my parents address with my mom on it. It's an account I've had since I was 17 and she had to be on it for me to get it! haha. I just never got around to getting rid of it.

Now it's useful because she gets my new cards in the mail and will be able to mail them to me paying with a card in her name. No faking my signature required. I haven't found my bank or credit card companies to be able to enter my UK address correctly so I actually receive mail over here.

One point about setting up a joint account with your daughter, Becca :  I did this with my son on checking account that I intended him to access to cover any expenses on house maintenance so had his name first (i.e. account in his SSN) with mine as second.  Our lawyer pointed out that that would be interpreted as a gift to him, so I had to go back and change it around.  He's still able to access the funds but no worries about tax.

DH & I did what worked best for us. He is a dual national, and I hope to be very soon. Given our age, he will likely never return to the US and I suspect I won't either (aside from visiting family). Other folks may elect other options; it's an individual decision when all is said and done.

That is a good point.  Of course each couple is different, and needs evolve as the relationship does.  Part of my problem is completely unrelated to the US/UK issue, and that's because the only other relationship I've had was started when we were both so young everything was just thrown into a pot.  I'm not as certain how a combined financial situation might look when both parties are.... *cough* .... not so young.

Good luck trying to get your former state to acknowledge your lack of residency. 

Good tip BostonDiner, I know that rule quite well but I don't think I'd have given it any thought - so thank you!

Thanks lyonaria.  I think keeping a checking account in the US makes sense, at least for the foreseeable future.  If nothing else it will be easier for US pension payments - among others - to get deposited into a US account.

If you do keep a bank account in the US, you might want to go into the bank before you leave for the UK and check with them about any arrangements that you need to make in order to wire money between your US and your UK bank as needed.  Sometimes you have to sign paperwork in person to set it up.

Also, if you need to pay any US income taxes now or in the future (for example, on a US pension), it can be useful to keep a US bank account to do so.

Also be aware that if there's no activity on a US account for a certain period (and check with your bank what that might be), the account is classified as "inactive", and may incur an 'inactivity fee".

Apparently monthly deposits from any miniscule interest earned do not count as 'activity' as I found out recently.

My US bank also requires that paperwork be signed there for any wire transfers; others may have a different policy, so again, something to check before you leave as orkneytime says.

Good point, vadio.  In fact my US bank threatens to close the account if there's no activity!  They do send out a warning but only to a US address of course. 

Also be aware that if there's no activity on a US account for a certain period (and check with your bank what that might be), the account is classified as "inactive", and may incur an 'inactivity fee".

We avoid the inactivity fee by occasionally withdrawing a small amount of money from the account via ATM.  That keeps the account active.