This Article was fact checked and last updated for accuracy on March 27, 2025 by Mani Karthik
I still remember the panic.
Two weeks before our flight to India.
Staring at my Chase mobile app.
“What do I do with all these accounts?”
My US-born son walked by.
“Dad, will your money disappear when we move?”
Kids ask the best questions.
When I moved back in 2017, managing banking relationships across continents became a surprising headache.
Nobody talks about this stuff.
But it’s crucial.
Let me show you what I learned the hard way.
Keep or Close? The Big Banking Decision 🤔
This isn’t straightforward.
I initially thought I’d close everything.
Clean break.
Fresh start.
Big mistake.
| Account Type | Keep It? | Close It? | My Recommendation |
|---|---|---|---|
| US Checking | Maybe | Maybe | Keep one with minimal fees |
| US Savings | Usually yes | Rarely | Keep for future US plans |
| US Credit Cards | Select few | Most | Keep oldest + no foreign fees |
| US Investment | Almost always | Almost never | Keep and manage remotely |
| Indian NRE/NRO | Convert to resident | Never close | Convert to resident accounts |
My first week back in India, I needed to pay for my son’s US college application.
The Indian card didn’t work on the US website.
Thank goodness I kept my Chase card.
Lesson learned.
The Banking Timeline: What to Do When 📅
Timing matters.
| Timeframe | US Actions | India Actions | Key Considerations |
|---|---|---|---|
| 3-6 months before | Research fees, notify banks | Open NRE/NRO accounts | Maintain minimum balances |
| 1 month before | Update addresses, order checks | Initial fund transfers | Exchange rate timing |
| Week of move | Set up online access abroad | Verify KYC is complete | Download all bank apps |
| 1-3 months after | Monitor for fees, issues | Convert to resident status | Tax implications begin |
| 6-12 months after | Close unnecessary accounts | Fully operational in India | Keep documentation |
When I moved back, I closed my Bank of America account too quickly.
Two months later, a US client wanted to pay me.
Had to scramble to create new payment methods.
Always overlap your banking relationships.
US Accounts: What I Kept and Why 🇺🇸
After six years in India, I still maintain:
- Chase Checking Account Minimal $12 monthly fee. Waived with direct deposits. Perfect for receiving US payments. My lifeline for my son’s US college expenses.
- American Express Credit Card No foreign transaction fees. Global acceptance is improving in India. Customer service that knows me.
- Schwab Investment Account Manages my US retirement funds. No residence requirements. Tax-efficient growth.
My wife initially questioned these decisions.
“Why pay fees for accounts we barely use?”
Last month, when we needed emergency funds for my son’s US hospital visit, she understood.
Indian Banking Setup That Actually Works 🇮🇳
| Bank Type | Features | Limitations | Best For |
|---|---|---|---|
| Public Banks (SBI) | Nationwide presence, stable | Slower service, tech issues | Long-term stability |
| Private Banks (HDFC, ICICI) | Better tech, faster service | Higher fees, fewer rural branches | Daily banking needs |
| NR Accounts | Foreign currency holdings | Usage restrictions | Initial transition |
| Fintech Options (PayTM) | Convenience, instant | Limited services, newer | Supplemental use |
When I first returned, I opened accounts everywhere.
SBI. HDFC. ICICI. Axis.
Massive headache managing them all.
Now I primarily use HDFC for daily needs.
SBI for long-term savings.
Simplicity wins.
NRE to Resident Account Conversion: My Horror Story 😱
Nobody warned me about this.
Six months after returning, I went to my HDFC branch.
“I need to convert my NRE account to resident status.”
The manager looked confused.
Four visits.
Seven forms.
Three weeks.
One compliance interview.
Finally converted.
The tax department watches these conversions closely.
Do it properly.
The Tax Implications You Must Know 💸
This is where it gets tricky.
| Account Type | India Tax Treatment | US Tax Treatment | Documentation Needed |
|---|---|---|---|
| NRE Funds (pre-return) | Tax-free in India | Taxable in US | FIFO statements |
| NRO Interest | Taxable in India | Taxable in US with credit | Form 1116 (US) |
| US Accounts | Taxable when resident | Always taxable for citizens | FBAR, Form 8938 |
| Transfers Between Countries | Not taxable as income | Reportable over $10,000 | FBAR, Form 8938 |
My CA in Kochi was clueless about US tax implications.
My US accountant didn’t understand Indian residency rules.
I ended up with specialists in both countries.
Worth every rupee.
Money Transfer Strategies That Save Thousands 💰
| Transfer Method | Fees | Exchange Rate | Speed | Best For |
|---|---|---|---|---|
| Traditional Banks | 2-4% | Poor | 3-5 days | Convenience only |
| Wise (TransferWise) | 0.5-1% | Excellent | 1-2 days | Regular transfers |
| Revolut | 0.3-0.5% | Very good | 1-3 days | Larger amounts |
| InstaReM | 0.25-0.6% | Good | 1-2 days | Asian currencies |
I lost nearly ₹2 lakhs on my first big money transfer.
Used my US bank’s wire service.
Terrible exchange rate.
Hidden fees.
Now I exclusively use Wise.
Their exchange rates are consistently better.
The app is intuitive.
My wife initially didn’t trust “online money services.”
Now she’s the one who reminds me to check exchange rates before transfers.
FBAR Filing: The Requirement Most NRIs Miss ⚠️
If you have more than $10,000 total in non-US accounts, you must file FBAR.
Every year.
Even after returning to India.
Even as a former green card holder.
Definitely as a US citizen.
The penalties are insane.
$10,000 minimum for non-willful violations.
My friend ignored this requirement.
Faced a $50,000 penalty.
Don’t be that person.
Credit Score Protection: Think Long-Term 📈
When I left the US, my credit score was 820.
Near perfect.
Years of careful building.
I almost closed all my credit accounts.
A mentor stopped me.
“Mani, what if you need to return someday?”
He was right.
Keep your oldest credit card active.
Use it occasionally.
Maintain that credit history.
You never know when you’ll need it again.
Documentation: Your Financial Safety Net 📋
Keep digital copies of:
- Final US bank statements from all accounts
- Account closure confirmation letters
- Final US tax returns
- NRE/NRO account opening documents
- All major money transfer receipts
- FBAR filing confirmations
My US-born son once asked why I have so many financial documents.
“Dad, are you worried someone will steal our money?”
“No beta, I’m worried about tax authorities thinking we’re hiding money.”
He didn’t understand then.
He will someday.
Digital Banking Hacks for Cross-Border Living 📱
Living between worlds requires special tools.
| Tool Type | US Options | Indian Options | My Preference |
|---|---|---|---|
| VPN Service | ExpressVPN, NordVPN | Same | ExpressVPN |
| Mail Scanning | Virtual Post Mail, Earth Class Mail | None good | Virtual Post Mail |
| Digital Signature | DocuSign | DigiLocker | Both needed |
| Authentication | Google Authenticator, Authy | Same | Authy (multi-device) |
My US bank once locked me out completely.
They detected Indian IP access.
Suspected fraud.
Took three days and international calls to fix.
Now I always use VPN when accessing US accounts.
No exceptions.
The Banking Questions I Get Asked Most 🧠
- Should I close all US accounts?
No. Keep strategic ones open. - Will my NRI deposits lose tax benefits?
Yes, after resident conversion. - Can I maintain US investments?
Yes, with proper reporting. - Will Indian banks report to the IRS?
Yes, under FATCA agreements. - Can I use my US credit cards in India?
Yes, but watch foreign transaction fees.
My neighbor returned from Canada last year.
Closed everything Canadian.
Three months later, received Canadian tax refund.
No Canadian account to receive it.
Massive headache.
Don’t burn bridges completely.
My Biggest Banking Regrets 😔
I made mistakes.
Learn from them.
- Closing my US accounts too quickly
- Not researching money transfer options in advance
- Using banks for currency exchange
- Misunderstanding NRE/NRO conversion timing
- Not setting up online access properly before leaving
My wife still teases me about the time I spent three hours on hold with Chase.
Using expensive international minutes.
Because I didn’t set up proper online access before leaving.
Plan ahead.
Save sanity.
Final Thoughts: The Banking Bridge 🌉
Your financial accounts are your bridge between countries.
Don’t burn it too quickly.
Don’t maintain unnecessarily.
Find the balance.
When my US-born son recently asked about college expenses, I was ready.
US account still active.
Credit history maintained.
Financial bridge intact.
That peace of mind?
Priceless.
Just like your transition should be.
Data Sources:
- NRI Banking Fee Comparisons: Wise Banking Survey 2023
- Money Transfer Rate Analysis: MoneyTransfers.com Global Report
- FBAR Compliance Statistics: US Treasury Financial Crimes Report 2023
- Indian Banking Options: RBI Guideline for Returning NRIs 2024
- US Banking Services: Kiplinger’s Personal Finance Banking Report