Anyone concerned about closure of US accounts when living overseas? Would the State Department Federal Credit Union be a good back up?

[draculkain]

American Citizens Abroad (ACA) and the State Department Federal Credit Union (SDFCU) have come together to provide ACA members with a US Banking solution. This was in response to problems that many overseas Americans have experienced with their US-based banking relationships. To open an SDFCU account you must come through an approved organization. ACA qualifies as an approved organization for SDFCU.

In the wake of changes in US and foreign securities laws and regulations, including the Foreign Account Tax Compliance Act (FATCA) rules, many US banks are pushing away US citizens who reside abroad. US and foreign securities and other regulatory rules make it very difficult for banks to service this market and, frankly, many US banks are not intimately familiar with this type of customer.

ACA teamed up with the State Department Federal Credit Union (SDFCU) to help provide accounts for Americans residing abroad. This is the same account used by US citizens working at US embassies as well as many other people living around the world. You can reside full-time or part-time abroad and still qualify. Many banks require clients to provide a US residential address to open an account. This makes it difficult for Americans living overseas. With SDFCU you can use a foreign address to open your account as long as it is your residential address where you live.

NOTE: ACA does not manage the SDFCU account and products offered nor the application or onboarding process. This is done directly by SDFCU. SDFCU is solely responsible for determining eligibility for accounts and product offerings. If you have additional questions about SDFCU account features, products and/or questions about the application process, please contact SDFCU directly: newaccounts@sdfcu.org.

https://www.americansabroad.org/aca/sdfcuaccounts-description-and-faqs/

 

[friendofstmina]

@draculkain I have an account. I have used their debit card at ATMs in remote places like Mindanao, Philippines without a hitch. I got the account for travel as I am out of the country six months out of the year now that I'm retired.

https://www.sdfcu.org/articles-membership-top-reasons-why-expats-bank-with-sdfcu

 

[angusargyle12]

@draculkain I have a SDFCU account, and it's fine. But it's purely backup.

 

[the7thcolporteur]

@angusargyle12 Backup to what?

 

[angusargyle12]

@the7thcolporteur To what OP asked about. SDFCU allows its customers to have a foreign address, while most US banks don't. So if my other banks decide to give me the boot, I have SDFCU as a backup.

 

[phdzaster]

@draculkain My new SDFCU account was locked without any notice. It most likely occurred since I was in the process of linking SDFCU account to my brokerage and bank accounts. Customer support is nonexistent; when I called several times to unlock it, I was told to come to their branch office or that someone will call me back within 24 hrs, which never happened. Really? And it's meant to be a welcoming alternative for expats? Now it’s been a month without restored access. I received a single email that my account is under review for unusual activity, which did not provide any timeline nor who could I reach out to other than the main number. I had great expectations for using SDFCU account after relocating overseas, but fortunately, I learned beforehand how bad things can get. Just hope to recover my initial deposit from them.