Dollars or Pounds?

jiruchan

I am a US citizen returning to the States after living in the UK for the past 3 years. I have a Lloyds Current account which I am able to keep open after I leave, and I also have the option of setting up an Internet Saver account (not the best interest rates, but it allows me to earn slightly more than the Current account.)

I've been briefed on the process for transferring the funds to my US bank account and it seems pretty straightforward. However, I'm unsure whether the right thing is to keep my money in pounds or to transfer into dollars. I don't need it immediately but eventually I'll want it in dollars...but I'm wondering whether to transfer it now or later. (Perhaps in case the pound gets stronger against the dollar again?) Anyone have an opinion on this? And if the opinion is to transfer, do you know of a particularly good savings account in the USA? (I currently have Chase.)

Thanks in advance!

mrposhman

how longs a piece of string??

i'm in the other boat where i have money in the states so a slightly better situation for me, though its difficult to spot what will happen.

When are you going back and when will you need the money?

If your view is low risk, transfer it now taking the spot rate. Obviously this will eradicate any risk but may not get you the best rate.

The £ has deteriorated today due to the BOE statements over recession, I'm not sure I've heard the same from the states which may indicate the $ will weaken when they do.

Having said that, lower interest rates usually results in lower strength of your currency and the US doesn't have much further to fall. If its right what the BOE have indicated and that rates may decrease again by the year end, then the £ may weaken further.

Its a tough one and not an easy question for anyone to answer.

Cook_County

Cash is fine from a tax perspective; you still have to file the TD F 90-22.1 annually.

BiggaThanBen

I would wait, the dollar should go down in some time, not the best rate atm to convert pounds to dollars ...

mrposhman

what sound basis do you have that the dollar will go down?

I think the £ may strengthen but I can't see the $ weakening unless our economic situation changes and we suffer a lighter and shorter recession than we see in the states