Best exchange rate for banking a euros cheque?

marialee · 19 March 2018 at 5:11PM

Please can anyone point me in the right direction...

Mum has recently received a legacy from her sister who passed away at the end of the year, her sister lived in the Republic of Ireland, so the cheque came through in Euros.

I'd like to make sure mum is not ripped off by the usual banking sharks, so does anyone have any suggestions how mum can bank this cheque and get the best possible deal (i.e. best exchange rate, no charges etc)

The amount in question is about 20,000 euros

I don't mind getting her to open a new bank account with another bank to make sure she gets the best deal, or is it better to haggle with her current bank?

Or is there another way so she's not paying out just to bank her money?

Thanks in advance

jonesMUFCforever · 19 March 2018 at 8:06PM

1 You can't haggle with your present bank - they have a set procedure for dealing and handling foreign cheques.
2 Nobody worth their salt will work for nothing - so expect to pay someone to do a service for you.
3 If she opens a new bank account where she has no track record it is highly likely that the cheque will be sent on a collection basis - meaning a long wait for the funds and higher charges.
4 Those 'banking sharks' may not offer you the best rate but have branches and infrastructure to help you when things go wrong.
5 What in your opinion is a best rate?

Herbalus · 19 March 2018 at 8:46PM

I would suggest the likelihood of the cheque being on collection basis is very likely in any case, especially if for that amount on a standard personal current account.

Collection means the bank won't credit your account until they've posted the cheque back to Ireland to the bank whose cheque it is, and then received the funds via wire transfer. It can be many weeks.

The best way would be to open a Euro account, and then transfer via a specialist broker. Where you'd go for a euro account though I don't know.

marialee · 19 March 2018 at 9:20PM

Thank you both for your replies.

No, JonesMUFC, I don't expect the bank to work for nothing, but consider this...

She has already had to apply for Irish Tax Status, deduct the value of any 'gifts' or 'inheritance' she has received from her sister since 1991 (yes - since 1991!!!), meaning she will have to pay the Irish Government 30%... Then there are already the cost of documentation that has had to be done in the UK in the presence of a solicitor, and then shipped back to RoI; the cost of the Solicitor handling it in the RoI... etc etc despite the fact that my Aunt worked all her life and paid taxes on everything she earned...

Therefore mum's 30,000 Euro inheritance, will be whittled down to something like 12000 euros after all the deductions, so I feel absolutely justified in looking for the best possible deal for her. And it's certainly not something a 90 year old would feel confident about - she's of that generation that just accepts whatever is put in front of her and pays up without question.

Explaining all this to her is difficult enough as it is.

And as for those 'banking sharks' that have the infrastructure to sort things out when things go wrong.... don't get me started!!!! Many many hours of my life have been wasted 'on hold', chasing for answers, complaining and complaining again when it goes wrong, so yes, I feel absolutely justified in calling them sharks. After all - it's unlikely there would be a need for this type of forum if everything went swimmingly!

Sorry for the rant, but in my experience, banks are in this business to make money - they are not a charity or doing it for the benefit of their health, so they will take all and every opportunity to make money out of people, and doing this to a 90 year old lady isn't really very ethical in my humble opinion.

On a more positive note, I will investigate opening a euro account for her as this could be the way to go.

Thank you both again for your replies.

eDicky · 19 March 2018 at 10:55PM

A euro account with an Irish bank, such as KBC Ireland, can be opened online with a UK address. After depositing the cheque, to avoid the sharks biting you with their exchange rates a service such as TransferWise, Azimo or Revolut can be used for transfer to UK account.

If a euro cheque can be paid in to Fineco Bank UK (I'm not sure), their multicurrency account gives close to the perfect interbank rate for conversion.

marialee · 19 March 2018 at 11:15PM

Thanks eDicky, that's very useful and practical advice - I shall investigate forthwith!

Best exchange rate for banking a euros cheque?

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