Tip 141: Bank and credit card account abroad

I wrote previously about openning a multi currency account to take advantage of differring yields and growth rates from different countries. The volatility in the financial markets will see more opportunities for those who want to leverage on such volatility instead of be affected by them financially. We get affected when we have to transact in foreign currencies, either to pay an education expense, a home mortgage, a holiday trip, a purchase on the Internet. It may seem negligible at first, but if our transactions become more frequent or larger in quantity, the savings can be substantial. The myth that managing many different accounts can cost a lot of time and fees is not necessarily true nowadays. With internet banking and automated direct debit, foreign credit cards can be managed easily. Though, one must already set aside savings for each account so as not to micro manage them all the time. There is a need for vigilance when one deals with foreign currencies with such huge volatility, but with moderation, such action may actually be safer than inaction. Hence, its good to keep active a foreign account overseas even if you have stopped studying or working there.














When I left Hawaii after completing my MBA 4 years ago, I left my USA bank account active and now look back and enjoy the benefits of it. Whenever I get small online income or even consulting revenue in US dollars, I need not wire the amount to a foreign bank account and incur fees and exchange rate losses, but can keep them at my USD account. When the currency exchange rates are favorable, then I make the transfers thereby controlling the value I get. Also, I take joy in using this USD account to give to meet the needs of my aunt, a missionary and have witnessed how God replenishes the account constantly out of my control. Handling various accounts in foreign currency does require one to keep abreast of happenings that would affect currencies so one can attempt to make the best currency exchanges. For instance, the recent North Korean defiance on its nuclear weapon initiatives have resulted in the US dollar strengthening temporarily over other currencies which can be used for one's advantage. Most banks abroad do not do like Malaysian banks do to charge RM10 every 6 months if your account is dormant. Hence, I find it more beneficial to keep the bank accounts active as there will be more foreign currency transactions by anyone in the future as the effects of globalization takes place.















I do agree I sometimes get myself handling too many things/accounts at one time and others may have different preferences, but do share your views.















(Photos show Haruka at Rue Montorgueil, a street lined with patisseries yet taking time to greet Bonjour to a dog, St Paul's church, Sainte-Chapelle, Saint-Jacques Tower and Place de la Bastille).