USA Finance Tips & Insights for UK Savers

If you’re a UK resident eyeing the US or already living there, the money rules feel like a whole new song. You don’t have to learn it by ear – this guide gives you the main chords so you can hit the right notes with your cash.

What Happens to Your ISA When You Move to the US?

Many think an ISA disappears the moment you cross the Atlantic, but that’s not true. Your existing ISA stays open, yet you can no longer add money while you’re a US tax resident. The US treats it as a foreign account, so you’ll need to report it on your FBAR and possibly your FATCA forms. The key is to keep good records of the original contributions and the tax‑free status you enjoyed in the UK.

Before you pack, talk to a tax adviser who knows both UK and US rules. They can help you decide whether to keep the ISA, transfer it, or close it to avoid surprise penalties.

Credit, Loans, and Mortgages Across the Pond

Credit scores work differently in the US, but the principles are familiar. The “20% credit card rule” still matters – keep your balances under 20 % of your limit to protect your score. If you’re applying for a US mortgage, lenders will look at your credit history, income, and sometimes your UK credit file if you’ve just moved.

For a $100,000, 30‑year mortgage at 7 % interest, the total cost climbs above $150,000. That’s why many expats consider remortgaging or using a UK‑based mortgage broker who offers cross‑border deals. Check the fees, early‑repayment charges, and whether you can switch to a lower rate later.

If you have a solid UK credit score, you can often translate it into a US score through services like Experian’s international credit transfer. That helps you qualify for better car loan rates – a 750 credit score today can snag you rates under 4 % for a new auto loan.

When budgeting in the US, the 5/24 rule used by US banks isn’t a thing, but the idea of limiting new credit inquiries still applies. Each hard check can shave points off your score, so only apply when you’re ready to commit.

Saving for emergencies works the same way: keep three to six months of living costs in an easily accessible account. High‑yield savings accounts can offer 4‑5 % APY, far better than many UK options, but read the fine print for withdrawal limits.

Investing in US stocks or ETFs is simple with a brokerage that accepts UK customers. A 70/30 portfolio – 70 % growth assets, 30 % bonds – gives a balanced mix of upside and stability, especially if you’re planning to retire in the US.

Lastly, remember the tax angle. The US taxes worldwide income, so your UK ISA earnings may be taxable in the US. However, the UK‑US tax treaty can prevent double taxation if you claim foreign tax credits correctly.

Bottom line: treat your move to the US like a new music genre. Learn the scales – tax reporting, credit health, mortgage costs – and you’ll play your finances smoothly. Need a deeper dive? Check out our articles on ISA rules, credit card utilization, and mortgage budgeting for detailed steps.