Keeping a US checking account while living in Israel

Last Updated on December 21, 2023

The information and links contained in this article are for general educational purposes and should not be viewed as recommendations of any product or service.

It is highly recommended that you maintain a US checking account when you move to Israel. Many US checking accounts are free to open with no monthly fees attached and you never know when it might come in handy. Having a US checking account can be helpful in many situations, including:

• Transfering money to Israel
• Paying US taxes
• Cashing US checks
• Receiving US based income or gifts
• Paying off US credit card bills
• Buying US treasury savings bonds and contributing to US investment accounts

If you are already living in Israel and don’t maintain a US address, scroll down to the section on accounts available with no US address.

Maintaining a US mailing address after Aliyah

Because so many accounts and services are only offered to those who can verify a US address, many Olim choose to maintain a US address after moving to Israel. Some use a US address of a trusted family member while others pay for a virtual mailbox service such as iPostsal1, PostScanMail and St. Brendan’s Isle. Banks and brokerages generally require a recent bank statement, brokerage statement, driver’s license, or utility bill in order to verify your US address. Some financial institutions will not accept an address from a virtual mailbox service.

In general, once you live in Israel, you should not use this US address on your federal tax return. Maintaining a US residential address when filing taxes can increase the risk of a specific state demanding you file a state tax return. Speak to your US accountant for specific advice.

Keeping a US phone number after Aliyah

Many US-based services require a US phone number for two-factor authentication. It is recommended that you port your US number to Google Voice before making Aliyah. You will not be able to set up Google Voice easily in Israel. Besides the obvious advantages of being able to keep your personal number after Aliyah, having a phone number that originated from a US mobile carrier can prove valuable. This step should only be taken once you are very close to your Aliyah date and are ready to cancel your mobile plan. Follow google’s instructions carefully or use this step-by-step guide for more information on the steps involved.

Other app-based solutions such as TextMe or TextNow may work but they are less reliable and many banks will not accept a virtual number from these services. Luckily, some banks and brokerages are moving toward app based rather than SMS based two-factor authentication which will make accessing an account from anywhere much easier.

Which account is best for me?

Just input your specific circumstances and our interactive calculator with help you choose the right account for you. You can also keep reading to learn more about the pros and cons of some of the best options!

Summary chart

*Note that this chart includes both US checking accounts and other types of accounts with US banking features. Additional information follows.

Account	Requires US address	Zelle support	Accepts an Israeli #	Low-cost currency exchange & transfer	No foreign transaction fee ATM/debit card	Other notes
Schwab Checking	Yes	Yes	No	No	Yes	Must be linked to an investment account
Revolut	Yes	No	Yes	Yes	Yes	Primarily built for mobile
Ally Bank	Yes	Yes	No	No	No	–
SDFCU	No	Yes	Yes	No	No	–
Wise	No	No	Yes	Yes	Fees vary	Not FDIC insured
Schwab International	No	No	Yes	No	Yes	Debit card and investment account only, not a checking account
Interactive Brokers	No	No	Yes	Yes	No	Account must be primarily used for investing, not currency transfer

Accounts available with a US Address

The Schwab Bank Investor Checking account is a very popular US checking account for Olim because of its no foreign transaction fee atm/debit card and their great customer service. The Schwab checking account is only available to those who open an attached brokerage account.

Revolut is another great option because it is completely digital, will send new or replacement debit cards anywhere in the world, allows you to set up an account with an Israeli phone number, offers unlimited currency exchange at the market rate for a low monthly price, and allows you to save and spend in shekels without using an Israeli bank account. Revolut is discussed in much more detail here.

If you are looking for a more traditional checking account, one of the most popular options for expats is Ally Bank – a major digital-only bank.

Recently, many have complained that Capital One 360 is becoming more and more difficult to use while living outside the US and is therefore not a recommended option.

Accounts available with no US Address

If you are already living in Israel and have no US address, your options will be much more limited. Schwab’s international account and Interactive Brokers are both brokerage accounts you can open with an Israeli address that include many US banking features. These platforms are discussed in much more detail in our investing platforms article.

Wise’s multi-currency account offers similar features to Revolut (mentioned above) – although with higher fees. Some of the main advantages to Wise’s account is that you can open an account with an Israeli address and you don’t need to sign up for a subscription like you would with Revolut.

Another option is to open an account at the State Department Federal Credit Union – a bank which will open accounts for Americans living anywhere in the world. Opening an account requires you to fist become a member of an affiliated group. If you aren’t a member of any affiliated group, you will need join the American Consumer Council as part of the account opening process. To get started, click “join” or “open an account” at the top of the page – then select “personal” – then select “I do not qualify to join through any of these methods” and follow the steps for joining the ACC.

Checking account complications

If you are preparing to make Aliyah and do not plan on maintaining a US address, you should consider reducing the amount of funds you keep at any of the major US banks including – Wells Fargo, JPmorgan Chase, Bank of America, Citigroup, and Capital One. Due to FATCA requirements, these banks regularly close and/or freeze accounts of customers who are no longer living in the US and can’t verify a US address.

Even if you do maintain a US address, traditional checking accounts can cause you headaches after Aliyah. Some banks require you to be physically present in the US in order to wire or transfer significant amounts of money out of your bank account. If your bank does not allow remote wire requests, DO NOT leave large amounts of money in that account after you move to Israel. The last situation you want to be in is to have to fly to the US just in order to request a money transfer.

Business Accounts

If you are looking to maintain a checking account for your US based business after moving to Israel, consider one of the digital-only business banks that regularly open accounts for people living abroad, including: Revolut, Jeeves, Wise, Mercury and BlueVine. Most of these accounts will require that your business address be in the United States and that your business be registered as a US entity.

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