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    brownjd's Avatar
    brownjd Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 7, 2006, 08:42 AM
    Leaving funds in US account
    Hi,

    I will be moving to the US from the UK on an H1-B visa for a job that lasts 3 years. At the end of that period, I expect to have saved a sum of money in a US bank account. My question is this:

    Am I allowed to keep a bank account open in the US under my name when I leave permanently and, if so, are there some restrictions (e.g. on the duration for which it can be left open)?

    The reason being that the exchange rate from USD to GBP may not be favourable at my time of departure.

    Many thanks,

    James
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,788, Reputation: 846
    Senior Tax Expert
     
    #2

    Sep 8, 2006, 08:30 PM
    James:

    Yes, you can leave the funds in the U.S.-based account. If it makes a substantial amount of interest, you will be liable for taxes, probably at a 30% tax rate.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
     
    #3

    Sep 10, 2006, 05:32 AM
    After you leave the U.S. and are a nonresident alien, the interest income will not be subject to U.S. tax. You will need to let the bank know that your status has changed to a nonresident alien by filing with them a W-8BEN. There is an exemption for the 30% withholding tax for bank deposit interest. If you return to the UK and are a UK resident, then even other interest income will be subject to a reduced rate of US tax under the income tax treaty between the U.S. and the UK (I haven't looked at the rate but it could be zero).
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,305, Reputation: 7692
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    #4

    Sep 10, 2006, 07:33 AM
    Yes you may also wish to check and pick a bank that has branches both in the US and in the area you are moving back to. Many banks are international

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