Transfer funds back from US

FistfulOf$

Hi all,

I can see that there's lots of great advice on the site about transferring money to foreign countries but what about transferring money back?

I lived and worked in the US for 3 years and saved quite a bit of money. When I moved back to the UK I didn't take my savings with me as the exchange rate was much worse than when I was earning.

Recently it seemed things were improving so I made initial enquiries with foreign exchange companies to get my money moved over but now the rate has completely tanked again and I'm stuck.

To avoid having to pay tax in the US, my funds are in a non-interest account so obviously every day they are stuck over there I am losing money but if I was to transfer right now (or at anything higher than 1.65) I would lose out big time (I was earning at 1.35 !!).

Is there a better way of transferring the money or as assets, stock, bonds or is there a high yield account I could stick it in over here to make up what I would lose on the exchange rate?

Thanks!
FistfulOf$

jenniferpa

Have you investigated some of the offshore dollar account? Quite a few of the mainstream banks offer this sort of account. I doubt, though, that any of them are going to provide enough interest to make up for the exchange rate. Have you investigated how much tax you would pay if you put the money in a US interest account? As you seem to be stuck whatever you do, and I doubt that the dollar will move very much in your favour in the near future, surely some interest would be better than none.

FistfulOf$

Unfortunately, the vast majority of US current accounts don't pay interest at all and when they do it's minimal to say the least. However the problem is that I am now a non-entity as far as the IRS is concerned and in earning interest I would then have to re-open my file and probably start filing for double taxation which is an eternal nightmare.

I'm interested by the idea of offshore dollar accounts in the UK although if the interest rates are that low then it sounds like I might be better picking a higher rate sterling account. Can you think of any banks that offer dollar accounts?

Thanks,

inmypocketnottheirs

Most UK banks offer a dollar account.

FistfulOf$

Yes and their interest rates are pathetic.

However, I have discovered that Cater Allen private bank operate a personal account which can be held in sterling, dollars or euros and the interest rates outperform other banks' accounts by a country mile so I think that's what I'll plumb for.

Thanks again.

jenniferpa

As an example (not that I would recommend HSBC to anyone)

http://www.offshore.hsbc.com/1/2/international/savings-accounts

The dollar savings account has a 4.55% gross rate.

jonesMUFCforever

The rate has gone against you now in a bad way!
Rate is now hovering towards $2 to £!

Cook_County

The good news here is that you have made a capital loss which if you claim it on your tax return can be carried forward for ever to set against future capital gains...

tightfella

I worked out there for 18months, and when i transferred my cash back I used

https://www.moneycorp.com .

It involved transferrring the money to their US $ account, and then onward routing to the UK. You can set the rate you wish to achieve when you make the final payment to your UK Sterling account.

Worth a look.

Middlers

I am in a similar position to you having sold a property in Florida (bought at $1.38 and the rate now $1.88). If I change back to sterling now I will lose out. Therefore I have mine in a dollar account in the Isle of Man with Nationwide Building Society. You do have to pay tax on your interest but the interest I get is close to 5%. Once the rate goes back down (hopefully) I just ring up and have it transferred to my UK Nationwide account. The money has been in the account for the past 8 months and I have made a tidy sum. Go to http://www.nationwideinternational.com/ What have you got to lose?

Cook_County

I see several issues with Middlers solution:

1. It is a gamble.
2. The Isle of Man interest is taxable.
3. The gain on foreign currency is taxable as a capital gain (in addition to the US and UK CGT on the gain on the Florida property).