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Best option for cashing American cheques?

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Hi,
I' ve recently had some large cheques from the US and would like to find the best option for cashing them, incurring the lowest cost for doing so.

I understand most banks charge a percentage when the cheque amount is higher than their usd1000, and understandably as much as possible I would like to avoid this.

Would it be possible for me to have an American account in the US, if so does any one know how I would go about this, or can any one recommend a suitable bank in the UK for the sole purpose of cashing foreign cheques as I will also be receiving cheques from Japan.

Is it possible to have an us dollar bank account with English banks?

Thank you for any advise you might be able to offer.

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    metso wrote:
    Is it possible to have an us dollar bank account with English banks?
    Majority of banks offer off-shore USD accounts. Citibank UK offer on-shore USD accounts.
  • g_attrill
    g_attrill Posts: 691 Forumite
    grumbler wrote:
    Majority of banks offer off-shore USD accounts. Citibank UK offer on-shore USD accounts.

    Just make sure you pay the tax on the interest.... banks based in the UK and which have offshore accounts have recently been forced to disclose the identies of UK account holders and HMR&E will be looking to see if they are paying taxes on the interest.

    If you have an offshore account and are not paying tax then call HMR&E as soon as possible to arrange payment. At the moment they are just happy will just take what is owed but if they have to do the leg-work themselves I reckon they will want some recompense.

    Gareth
  • dunstonh
    dunstonh Posts: 119,624 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I doubt any of them would cash the cheque though. They would want it presented and cleared first.

    You would also have to satisfy money laundering identification requirements and probably jump through a number of hoops which means it may end up cheaper (in time costs in addition to actual costs) to use your own bank.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Chrismaths
    Chrismaths Posts: 931 Forumite
    Most (small value) overseas cheques are negotiated rather than sent for collection these days. But if you were opening an account just to cash a cheque they would probably send it for collection...
    I'm an Investment Manager. Any comments I make on this board should be not be construed as advice, and are for general information purposes only.
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