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Currency

The American currency system is based on the US dollar ($), a bank note available in the following denominations: $1, $2 (although this denomination is fairly rare and not commonly used), $5, $10, $20, $50, $100. Each dollar is comprised of 100 cents, and the following coins are in common use: penny (1 cent, copper), nickel (5 cents, silver), dime (10 cents, silver) and quarter (25 cents, silver). There are 50 cents and 1 dollar coins in US currency, but they are not commonly used. All American bank notes are green and are the same exact size and shape.

Banking

Opening a bank account in America has become more complicated since the attacks of September 11, 2001 and the subsequent introduction of The Patriot Act. To open a US bank account you must now have a Social Security Number (SSN) or an Employer Identification Number (EIN) for business accounts. You will also need documentation showing a current US address, preferably a picture I.D. (such as a driver’s license).

Obtaining a US bank account as a non-resident, or without an SSN, is now difficult. It is advisable to plan ahead for this and make sure you have enough funds available before establishing a US bank account. A UK (or other foreign) debit or credit card will be accepted in most businesses, and ATM cards can be used to withdraw money in US dollars; check with your bank ahead of time, however, so you are aware of any foreign transaction fees you may incur.

There are thousands of US banks to choose from. Some are national – and even international – chains, while others are regional chains. Bank of America, for example, is nationwide, but the Bank of Florida is a bank that only has branches in Florida. Some of the big nationwide banks to choose from include Capital One, Citibank, HSBC, Wachovia Bank, and Wells Fargo Bank, among many others. There are also a number of credit unions to choose from, but some are limited to certain groups of people (state employees, for example). Credit unions are like building societies in the UK in that the members own a stake in the credit union, not investors. Usually, credit unions offer better interest rates than banks, but this is not always the case.

When choosing a bank or credit union, make sure you shop around for the best interest rates. As an expat, it is also worth trying to find a bank that does not charge foreign transaction fees (or one that charges a minimal fee, as some banks charge extortionate rates). This will ensure that you are able to use your debit or credit card without having too worry about hidden charges when traveling or shopping online.

Online accounts have become increasingly popular within the past few years. Online accounts eliminate much of the paperwork involved in regular accounts; this savings often means better interest rates. Popular online banks include HSBC, ING Direct, and Citibank.

It is worth noting that American banks are a few years behind the rest of the world in introducing “chip and pin” technology. While nearly every shop or business does accept debit and credit cards, chip and pin is not widely used, so you will likely still need to sign a receipt when using this method of payment. Cash is, of course, widely accepted, and it is not unusual to see Americans still writing checks at the local shops.

It is advisable that you do not close your bank account(s) in your home country before moving to the US Even if you are planning to live in the US for an extended period of time, it can be useful to have a bank account or credit card in your home currency in case of an emergency. This will also help in the transition if/when you repatriate. Re-opening a bank account can cause a lot more headache than simply keeping your current bank account open, even if you only occasionally – or never – use it.

Credit

It can take a while to establish credit in the US, which can be particularly inconvenient if you are planning to purchase property. Some credit cards, such as American Express, Diners Club, and MBNA will transfer information and credit history to US credit files.

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Expat Focus would like to acknowledge the kind help given by Kirstie Wilson of British Business Connection in compiling this guide.

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