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.
Table of Contents
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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The Vineyards of Kochav HaShachar
This is EXTREMELY helpful thank you.
My parents and I are struggling with the US phone number requirement. Would help if you could add this to the table above.
Hi David, glad to hear. This is already in the table above, see “Accepts an Israeli #”
Hi, what’s considered “maintaining a US address” in the context of US banks requirements? Just having a US address on the bank account and/or being able to respond to a postal mail? Or actually be present there for some period of time?
Generally banks do not verify how often you are or aren’t present at your US address. Most banks will send all or most communication via digital means and not use snail mail. Nonetheless, providing a verifiable US address in order to prove nexus to the US is often a requirement for opening an account.
wanted to express my gratitude for very help ful info and wish you much bracha for your chesed
Amen! Thank you very much for your kinds words.
SDFCU.org offers free membership of the American Consumer Council.
Awesome, updated!
An *unexpired* U.S. passport is required. I’ve not been outside Israel in 20 years and my passport is expired. Since I have a limited time to hopefully find a viable option since I’ve received notice from my bank in the States that, due to a change in their policy, I will be required to close my U.S. checking account (withdraw funds via debit card), I need a fairly fast solution. Thank you for the idea, though.
From what i understand, you need to pay 15 dollars for lifetime dues but with a credit card that is the same name as the signator