Should you keep your home country bank account while studying abroad? Read this.
Going abroad for university usually means you have to open a bank account in the new country. A bank account will help you receive payments, pay rent, buy groceries, and handle expenses. For university students, a bank account is essential when living abroad.
But does that mean you should close your bank account back home immediately?
Not necessarily.
For some students, keeping a bank account in their home country while studying abroad can be helpful. This is especially true if they still receive money from family, have bills or subscriptions in their home country, need to make payments there, or plan to return after they finish school.
Having an account also means you need to know about any bank fees, tax rules, exchange rate costs, and account requirements that might apply.
Before closing your home country bank account while studying abroad, consider what you still need it for and whether keeping it open is practical.
Think Whether You Still Need Your Home-Country Account
The first question is simple: what would you use your home-country bank account for while studying abroad?
If your parents or other family members send you money often through the bank in your home country, closing that account could make everything more difficult.
You might still need that account if you’re paying for things such as insurance, subscriptions, school‑related expenses, or other commitments in your home country.
On the other hand, if you no longer receive or make payments there and the account has maintenance fees to keep it open, it may not be worth it. Make a list of the payments and transfers connected to your account before deciding.
Check Whether Your Bank Charges Fees for Keeping the Account
A bank account you rarely use can still cost money.
Your bank may charge account maintenance fees, card fees, minimum-balance fees or other charges. Some banks may also have rules about what happens if an account remains inactive for a long period.
Before you leave, contact your bank or check its official terms to find out what applies to your particular account. For example, if you plan to leave Nigeria to study in the UK, ask your bank first whether you can keep using your account while you are abroad.
You should also ask if your debit card will work in other countries and if there are any fees for international transactions. Checking these points before you travel is far better than discovering a problem after you leave Nigeria.
Open a Local Account for Your Everyday Expenses
Keeping your home-country account while studying abroad does not mean you should use it for everything. Once you arrive in your new country, having a local bank account can make everyday financial management easier.
For example, Canada provides information specifically for newcomers about opening a bank account. The Financial Consumer Agency of Canada explains that you can open an account even if you do not have a job or money to deposit immediately. However, you will need acceptable identification.
In New Zealand, some banks allow students to start opening an account from their home country before travelling.
In the United Kingdom, students should check the requirements of the bank they want to use and make sure they can provide the necessary identity and immigration-status information.
The same basic principle applies elsewhere: understand the banking options available to international students in your destination country.
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Consider How You Will Receive Money From Home
Some international students continue to receive financial support from their families after moving abroad.
If your family sends you money regularly, consider which account makes the process easiest and least expensive. For example, your parents might send money from your home country to your foreign bank account.
In another situation, they might transfer money to your existing home-country account, and you may then move it yourself to your new account.
Compare the fees and exchange rates before deciding. A transfer that looks convenient may become expensive if the provider uses a poor exchange rate or adds several charges.
Remember That Tax Rules Can Apply to Overseas Accounts
Having a bank account in another country does not automatically mean you owe tax on the money in it. However, your tax position can depend on where you are resident, what the money represents and whether the account generates income such as interest.
For example, the UK government explains that foreign income can include interest from overseas savings accounts and that tax treatment depends partly on whether someone is UK resident.
In Canada, students who become Canadian tax residents may also have Canadian tax obligations relating to income earned outside Canada. This means you should not assume that money kept in a bank account in your home country is automatically outside the Canadian tax system.
In Australia, the tax treatment of foreign income can also depend on your residency status and the type of income you receive. This is particularly important if the money in your home-country account earns interest or other investment income.
So, if you keep your home-country account after you move to another country, don’t assume it has nothing to do with your tax duties.
If you’re not sure, check the rules in your home country and the country where you’re living now.
Think About Your Plans After Graduation
Your plans after completing your studies can also affect whether keeping the account makes sense.
If you expect to return home after your studies, you may want to keep an active account for future expenses or payments. If you plan to stay outside your home country, you might not need to keep a bank account you no longer use.
There is no one answer that fits all students studying in another country. Your decision should depend on how you use the account, the costs involved and your plans after graduation.
Keep Access to Your Account Secure
If you decide to keep your home-country bank account while studying abroad, make sure you can still access it safely from your new location.
Check that:
- Your phone number can receive banking alerts or verification codes.
- Your banking app works outside the country.
- Your card will not expire while you are abroad.
- You know how to contact the bank from another country.
- Your email and phone number are up to date.
- You know what to do if your card is lost or blocked.
Also, never give your PIN, password or banking details to someone just because they say they are from your bank.
Think About Money You May Still Need at Home
Some students have financial responsibilities in their home country.
You may be helping your family pay for a property, keeping an existing subscription, or making payments. If you close the account without considering these commitments, the account may face avoidable problems.
Before closing it, review your recent transactions and identify anything that still depends on the account. You can then decide whether to keep it, switch to a cheaper account or make alternative arrangements.
Do Not Keep an Account Just Because You Are Afraid to Close It
There is also no reason to keep a bank account forever simply because you have had it for years.
If you are not using it anymore. it keeps costing you money, find out whether closing it makes sense. If you decide to close it, first make sure that all outstanding payments have cleared and that you have downloaded any statements or records you may need later.
The same idea applies when closing a home-country account before or after moving abroad.
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Keep your banking arrangements simple
Having accounts in two countries can be useful, but it can also make your finances harder to track.
Try to know exactly:
- Which account you use for everyday spending.
- Which account receives money from family.
- Which account pays your home bills.
- What fees you are paying.
- How much money you have in each currency.
- How you move money between countries.
For example, a student from Nigeria studying in Canada might keep a Nigerian bank account for money matters at home and a Canadian bank account to pay for rent, food, and other everyday costs.
The goal is not to have as many accounts as possible. It is to have a banking arrangement that makes sense for your situation.
So, Should You Keep Your Home-Country Bank Account While Studying Abroad?
There is no universal rule saying that international students should either keep or close their home-country bank accounts.
Keeping one may make sense if you still receive money from home, have financial commitments there, expect to return after graduation or need an easy way to manage certain payments. Closing it may make more sense if you no longer use it and it’s incurring unnecessary fees or complications.
Conclusion
Before deciding, check your bank’s rules, consider your financial commitments, and understand the tax and reporting requirements in both countries.
Moving abroad brings financial changes. Moving abroad can feel overwhelming, so setting up your banking account before you go can save you extra fees, missed payments, and stressful surprises later.
