banking
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| banking [2025/11/01 22:28] – [FATCA and FBAR] jhagstrand | banking [2025/11/24 21:49] (current) – jhagstrand | ||
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| ====== Banking ====== | ====== Banking ====== | ||
| + | |||
| + | [[American Expat Retiree Financials | contents]] | ||
| Number of FDIC-insured banks in the US in 2024: 4500\\ | Number of FDIC-insured banks in the US in 2024: 4500\\ | ||
| Number of federally-insured credit unions in the US in 2024: 4600 | Number of federally-insured credit unions in the US in 2024: 4600 | ||
| - | === Financial Services | + | == Financial Services == |
| * Banking (Retail, Commercial, Investment) | * Banking (Retail, Commercial, Investment) | ||
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| * FinTech innovations | * FinTech innovations | ||
| - | === Types of Banks === | + | == Types of Banks == |
| * Retail Bank | * Retail Bank | ||
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| * provides all of the financial services listed above under one roof | * provides all of the financial services listed above under one roof | ||
| - | ====== Global Banks ====== | + | ===== Global Banks ===== |
| - | === HSBC === | + | == HSBC == |
| https:// | https:// | ||
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| * foreign trx fee: 0% | * foreign trx fee: 0% | ||
| - | === Charles Schwab | + | == Charles Schwab == |
| Investor Checking account, must be linked to a Schwab One Brokerage account: | Investor Checking account, must be linked to a Schwab One Brokerage account: | ||
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| Note: Schwab acquired TD Ameritrade in 2020, complete in May 2024. | Note: Schwab acquired TD Ameritrade in 2020, complete in May 2024. | ||
| - | === eTrade | + | == eTrade == |
| from Morgan Stanley Private Bank\\ | from Morgan Stanley Private Bank\\ | ||
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| No transaction fee for online wire transfer. | No transaction fee for online wire transfer. | ||
| - | ====== International money transfer businesses | + | ===== International money transfer businesses ===== |
| Examples: | Examples: | ||
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| * Azimo | * Azimo | ||
| - | === Wise === | + | == Wise == |
| Started as TransferWise by two guys from Estonia.\\ | Started as TransferWise by two guys from Estonia.\\ | ||
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| * Your Balance - instant | * Your Balance - instant | ||
| - | ====== Thin Tech Banks ====== | + | ===== Thin Tech Banks ===== |
| Example | Example | ||
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| though he works with entrepreneurs, | though he works with entrepreneurs, | ||
| - | ====== Online Bank Accounts | + | ===== Online Bank Accounts ===== |
| Examples | Examples | ||
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| These banks are NOT global. They require a US address. | These banks are NOT global. They require a US address. | ||
| - | === US Direct Express | + | == US Direct Express == |
| https:// | https:// | ||
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| I think it requires a US address | I think it requires a US address | ||
| - | ====== Travel Credit Cards ====== | + | ===== Travel Credit Cards ===== |
| The foreign exchange rate is a function of the network (Visa or Mastercard), | The foreign exchange rate is a function of the network (Visa or Mastercard), | ||
| - | === Chase Sapphire Preferred | + | == Chase Sapphire Preferred == |
| The Chase Sapphire “unpreferred” version is no longer available to new applicants. | The Chase Sapphire “unpreferred” version is no longer available to new applicants. | ||
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| * no foreign transaction fees | * no foreign transaction fees | ||
| - | === Citi Strata Premiere | + | == Citi Strata Premiere == |
| Previously Citi Premiere, the “Strata” was added in mid 2024. | Previously Citi Premiere, the “Strata” was added in mid 2024. | ||
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| * no foreign transaction fees | * no foreign transaction fees | ||
| - | ====== FATCA and FBAR ====== | + | ===== FATCA and FBAR ===== |
| + | |||
| + | [Editor: this info does not belong on this page. This page is about American banking. | ||
| Two different requirements for taxpayers to report foreign holdings. | Two different requirements for taxpayers to report foreign holdings. | ||
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| Note. The Thai retirement visa requires 25,000 in a Thai bank.\\ | Note. The Thai retirement visa requires 25,000 in a Thai bank.\\ | ||
| - | If an expat living in Thailand keeps between $25K and $200K in Thai banks, he must file an FBAR but not IRS 8938 (FATCA). | + | If an expat living in Thailand keeps between $25K and 200K in Thai banks, he must file an FBAR but not IRS 8938 (FATCA). |
| - | === Summary of FATCA reporting for U.S taxpayers | + | == Summary of FATCA reporting for U.S taxpayers == |
| https:// | https:// | ||
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| * must file an income tax return | * must file an income tax return | ||
| * not married filing jointly | * not married filing jointly | ||
| - | * more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year | + | * more than $200,000 on the last day of the tax year or more than 300,000 at any time during the year |
| The rules are different for taxpayers living in the US and for non-citizens. | The rules are different for taxpayers living in the US and for non-citizens. | ||
| - | === === | + | == Comparison of Form 8938 and FBAR requirements == |
| - | + | ||
| - | === Comparison of Form 8938 and FBAR requirements | + | |
| https:// | https:// | ||
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| FBAR Form 114 is filed online thru FinCEN, even if you don’t have to file a tax return.\\ | FBAR Form 114 is filed online thru FinCEN, even if you don’t have to file a tax return.\\ | ||
| IRS Form 8938 is filed along with tax return.\\ | IRS Form 8938 is filed along with tax return.\\ | ||
| - | Thresholds: FBAR $10K, FATCA $200K. | + | Thresholds: FBAR $10K, FATCA 200K. |
| - | === === | + | == Requirements for Financial Institutions == |
| - | + | ||
| - | === Requirements for Financial Institutions | + | |
| FATCA and BSA both put requirements on financial institutions to investigate and report customers who have foreign holdings. | FATCA and BSA both put requirements on financial institutions to investigate and report customers who have foreign holdings. | ||
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| https:// | https:// | ||
| - | ====== Payment Systems | + | ===== Payment Systems ===== |
| Summary | Summary | ||
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| * P2P systems are unique to specific national markets, and the USA ones have security and privacy faults. | * P2P systems are unique to specific national markets, and the USA ones have security and privacy faults. | ||
| - | ===== Automated Clearing House (ACH) ===== | + | ==== Automated Clearing House (ACH) ==== |
| National ACH association (NACHA)\\ | National ACH association (NACHA)\\ | ||
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| * closed on federal holidays | * closed on federal holidays | ||
| - | === Micro Deposit Verification | + | == Micro Deposit Verification == |
| At Chase Bank, and at CalCoast, the customer first creates an “external account”, which is presumed to be an account at another bank, owned by that same customer. The bank makes two deposits, each under one dollar, and the customer can prove that he has access to the external account by calling out the values of the two micro deposits. After this he can make ACH payments to that account. | At Chase Bank, and at CalCoast, the customer first creates an “external account”, which is presumed to be an account at another bank, owned by that same customer. The bank makes two deposits, each under one dollar, and the customer can prove that he has access to the external account by calling out the values of the two micro deposits. After this he can make ACH payments to that account. | ||
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| Can he also make withdrawals from that account? YES. Unless one of the two banks has some restrictions in place. Therefore, ACH is suitable only for use among one’s own personal accounts. | Can he also make withdrawals from that account? YES. Unless one of the two banks has some restrictions in place. Therefore, ACH is suitable only for use among one’s own personal accounts. | ||
| - | ===== Wire Transfer | + | ==== Wire Transfer ==== |
| Sent electronically across a network of banks or transfer agencies around the world. | Sent electronically across a network of banks or transfer agencies around the world. | ||
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| International wires take up to 5 days. It takes longer because it has to clear the USA ACH and the equivalent in the receiving country. Delays of up to 3 weeks are not unheard of. | International wires take up to 5 days. It takes longer because it has to clear the USA ACH and the equivalent in the receiving country. Delays of up to 3 weeks are not unheard of. | ||
| - | === Western Union === | + | == Western Union == |
| A non-bank money transfer made through a private network. Faster. | A non-bank money transfer made through a private network. Faster. | ||
| - | ===== PayPal | + | ==== PayPal ==== |
| International.\\ | International.\\ | ||
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| faxzero.com only takes paypal | faxzero.com only takes paypal | ||
| - | ===== P2P Payment Systems | + | ==== P2P Payment Systems ==== |
| Person to Person Payment Apps: | Person to Person Payment Apps: | ||
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| * Paytm - India | * Paytm - India | ||
| - | === Consumer Reports finds consumer risks === | + | == Consumer Reports finds consumer risks == |
| https:// | https:// | ||
| - | === === | + | == Plaid bank connection system fraud == |
| - | + | ||
| - | === Plaid bank connection system fraud === | + | |
| Plaid connects software to banking systems.\\ | Plaid connects software to banking systems.\\ | ||
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| https:// | https:// | ||
| - | === Send money to an email address. | + | == Send money to an email address. == |
| Example. Glenn Reeves asks for money for his 1040 excel spreadsheet, | Example. Glenn Reeves asks for money for his 1040 excel spreadsheet, | ||
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| (Send to: @Glenn-Reeves-2 ) | (Send to: @Glenn-Reeves-2 ) | ||
| - | ====== Credit Unions | + | ===== Credit Unions ===== |
| Credit Unions can offer services similar to banks, including checking, savings, debit card, credit card, and various credit and loan products. | Credit Unions can offer services similar to banks, including checking, savings, debit card, credit card, and various credit and loan products. | ||
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| Federally chartered credit unions in the US are regulated and supervised by the National Credit Union Administration, | Federally chartered credit unions in the US are regulated and supervised by the National Credit Union Administration, | ||
| - | === State Department Federal Credit Union (SDFCU) | + | == State Department Federal Credit Union (SDFCU) == |
| https:// | https:// | ||
| [[https:// | [[https:// | ||
banking.1762050532.txt.gz · Last modified: 2025/11/01 22:28 by jhagstrand