We’ve seen a flurry of recent activity around Chase Bank threatening to close accounts of EU residents starting in 2027. This seems to be loosely based on the recent EU regulation, CRD VI, coming into effect in January 2027.
In this article, we’ll cover what the new CRD VI regulations actually limit, how you can reduce the risk of your American bank accounts being closed, and solid options to avoid any risk of your accounts being closed in the future.
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Why Are US Banks Closing Accounts for Americans Living in Europe?
A growing concern for American expats is that US banks, including Chase, may close accounts held by customers with European addresses on file. One possible factor is a new EU banking regulation called Capital Requirements Directive VI (CRD VI), which takes effect in January 2027.
CRD VI introduces new requirements for banks headquartered outside the EU that provide certain banking services to customers within the EU. Depending on the services offered and applicable exemptions, banks may need an authorized EU branch to continue operating as before.
Rather than take on the additional regulatory costs, some banks may decide to restrict services or close accounts belonging to EU residents.
However, CRD VI does not require US banks to close every account held by Americans living in Europe. The impact depends on each bank’s policies and how it chooses to comply with the new rules.
How Can You Reduce the Risk of Your Bank Account Being Closed?
The biggest defense against account closure is to keep a US address on file with all your accounts. This applies to all financial institutions, not just bank accounts.
There are two ways to accomplish this for those who live abroad permanently.
Use a family member’s address
The cheapest option: simply register your address with a trusted family member or friend. If using paperless statements, there should only be one or two letters actually sent to the address, usually around tax time.
The downside with this approach is the need for your family member or friend to let you know when you’ve received mail, and probably open some for you too. Most of the letters will be junk mail or unnecessary mailers, but occasionally something important will arrive.
Use a mail forwarding service
For about $10/month, you can have a company act as your personal mailbox recipient. They’ll scan all your received mail and even open the letters you need to read. You’ll have a real mailing address to provide to banks, and even a way to read the junk mail they send too.
The downside is the cost. Most months there’s no mail or nothing important. It’s only occasional when there’s something really important, like when the IRS mailed us our tax refund, even though we specified electronic deposit! Luckily, our service can also deposit checks for us (for a fee).
We use iPostal1, but many other competitors exist who provide the same service. Your experience will likely depend on which location is handling your mail forwarding.
What Can You Do From Abroad If Your Account Is Closed?
While you may be able to use a family member’s address and save your account temporarily, the best long-term strategy is to open an account with a bank geared towards Americans living abroad.
Even if a traditional bank is currently allowing expats to maintain accounts, things could always change in the future.
These two options are designed around expats and allow opening accounts while already living in France.
SDFCU
The State Department Federal Credit Union is a bank created specifically for Americans abroad, originally serving Department of State employees living abroad who didn’t have access to other options.
While it may not offer a flashy app or currency conversion options, it’s a strongly regulated credit union and guaranteed not to close your account just for living overseas.
Joining the SDFCU can be a bit convoluted. We joined by first joining the American Consumer Council, which made us eligible to join the SDFCU. The ACC requires a membership fee, but there are many promo codes available online to waive the fee.
While we’re not currently using our account, it’s a doomsday backup option for us, should all of our other bank accounts be closed simultaneously.
Wise
Wise is our preferred option because it allows us to also convert our dollars into euros, in addition to banking. We signed up for Wise before moving to France, and we use it monthly for bill paying and banking in euros.
We love that we can earn a competitive interest rate on our currency holdings and manage everything from the app. Plus, their whole business model is built on expats abroad.
You can read our full review on Wise here.
We also wrote a guide to banking in France for Americans.
Questions? Comments? We’d love to hear from you in the comment section, or feel free to write us directly.
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