UK £ and US $ Bank Account

Danstar_2

I have been reading through the threads but can't find much helpful advice so figured best to join and ask the question(s).

I'm on an international course and so I will be studying in the US all next year, I'm saving up money (at present £120-50 a week, although its a month off to buy Christmas presents) for next year and this is the jist of everything.

I have a student account with NatWest and £1,600 in my cash ISA and £400 odd in my student account.

I was going to open a NatWest dollar account so I can transfer money online and get a debit card and maybe a credit card for security - because the dollar will go up as the US economy recovers - but the interest is rubbish compared to the ISA and I will pay fees on transfers as well and on transactions when I use it/them.

Online banking with the same bank for UK and US would be nice for the instant transfers. I was thinking of opening a Cater Allen account as I can move some money around to get the £5,000 opening balance which I THINK is all I need and then I can open the $ dollar account.



Any advice is much appreciated, sorry if it's too much info.

97trophy

Hi

If you are just talking about small amounts of money then don't bother with a US$ account. Just use your UK debit/credit card and pay the fx fee.

If its bigger amounts, open a proper US$ account when you get to the USA. Free banking is widely available if you search for it.

Also open an account with a broker such as XE.com to transfer money backwards and forwards.

Danstar_2

The thing is I'm there all year so I will be making hundreds of transactions and the amount will be between $10-15,000 over the year when I'm there so I would get hit over and over again everytime I use my card and as you share rooms in the US dorms I wouldn't feel comfortable keeping relatively large amounts of cash 'lying around'.

Also I will most probably have my weekly allowance and the money to pay my accommodation fees paid into my UK account.

You don't think the Cater Allen account is the way to go?

tng11

It's not too difficult to open a US bank account if you're going over there to study. You just need to fill out a W8-BEN form (I think that's what it's called) if you don't have a US SSN or ITIN. You provide proof you're studying and they should give you a free bank account with a Visa/Mastercard debit card.

You can choose Bank of America, Wells Fargo, Citibank, any of the large banks in the US. After the account is opened, wire transfer a lump sum of money from the UK to the US. If you can open a Citibank UK account and open a US account when you get there, the transfer fees should be less and the exchange rate might be better.

From reading, I also believe Citibank UK have a USD current account that will give you a debit card but you need to have an income of 20,000 or so, but in that case you could get your allowance into your GBP Citibank account, transfer it over to the USD account, then withdraw from a Citibank USA ATM (there are plenty of those).

gt94sss2

Danstar wrote: »

I have a student account with NatWest and £1,600 in my cash ISA and £400 odd in my student account.

I was going to open a NatWest dollar account so I can transfer money online and get a debit card and maybe a credit card for security - because the dollar will go up as the US economy recovers - but the interest is rubbish compared to the ISA and I will pay fees on transfers as well and on transactions when I use it/them.

While at university in the UK, I also spent a year studying in the USA.

I had a HSBC Student account and my branch put me in touch with their 'international banking centre' in the UK who arranged for me to open accounts with HSBC USA - all on the back of my 'existing relationship' with HSBC UK.

This meant that I had USD accounts all set up before I left the UK including debit and credit cards.. and it was all for free.

Depending on where you are going in the US, you may find this a better option. If you are living in the US for a while, you will certainly find it easier to have a 'proper' US account rather than an 'UK US' dollar account.

While in America, its best to use a US credit card - if you want to use a UK credit card while in the US for any reason, see if you can get one from Nationwide, the Post Office or Santander who all charge zero or very low foreign exchange fees. If you want to use a UK debit card in the US, get a Nationwide one for the same reason.

Regards
Sunil

withnell

Danstar wrote: »

I was going to open a NatWest dollar account so I can transfer money online and get a debit card and maybe a credit card for security - because the dollar will go up as the US economy recovers - but the interest is rubbish compared to the ISA and I will pay fees on transfers as well and on transactions when I use it/them.

Online banking with the same bank for UK and US would be nice for the instant transfers. I was thinking of opening a Cater Allen account as I can move some money around to get the £5,000 opening balance which I THINK is all I need and then I can open the $ dollar account.

So you aren't happy with a low interest rate from the Natwest dollar account, but you're happy to have 5,000 sitting earning nothing in the Cater Allen current account?

Danstar_2

withnell wrote: »

So you aren't happy with a low interest rate from the Natwest dollar account, but you're happy to have 5,000 sitting earning nothing in the Cater Allen current account?

Surely the exchange rate NatWest use plus their charges for transactions - 2%, charges for cash withdrawals plus £150 a year.

It all adds up.

withnell

In that case get a citibank USD account and Access (GBP) account. No annual fee, and no minimum balance