Best (cheapest) Business Account when earning american dollars

beaniebeagle

Hi all,

I hope that title makes sense!

I run a small business selling exclusively to American customers. I receive two wire transfers per month - each in American dollars from Wells Fargo bank.

We have a very small number of outgoing payments - mainly we just shift money monthly to our personal account. We have a couple of standing order set up.

About two years ago I was in Santander sorting out an ISA for myself and the assistant (sales woman) managed to persuade me to close down my RBS business account and move to Santander. I was assured no charges (I think I paid £5 per month with RBS). I explained that all money coming into the account would be in US Dollars and was assured there were no hidden charges and that exchange rate was the standard published rate (as you'd see if you searched on Google). I asked for a list of historical rates but was told they don't publish them.

I admit to being a bit lazy and not checking the exchange rate each month. But whenever I do it's a good bit less than the rate that I see on Google. I've phoned three times to query and each time was assured that Santander don't have their own special exchange rate - that we get the standard rate. The difference was down to the time of day that the money was deposited they said. It's cost me on average £100 per month and it NEVER works in my favour.

Anyway, I think today I'm finally convinced they're not being honest with me. I have sent off a complaint.

Question is, do all banks do this?

Second question is, any idea what would be the best bank for me. I hardly need them to do anything for me. Just want charges to be as low as possible.

lil.smartie

How about a UK 'US $' account? Up to you when you withdraw it and you'll get the spot exchange rate at that time? HSBC do one which has a UK sort code & account number which may help or see who Wells Fargo link to in the UK, I know Bank of America & Barclays are related and I can use their ATM's here for free

Kate

[Deleted User]

Would a Citibank UK Dollar account do the job? Costs £5 a month.

beaniebeagle

Thanks both!

This does sound good but my fuddled little brain is still struggling.

OK, with the Santander free business account there are zero charges. I pay nothing - ever.

However, when I calculate how much I should get in Pounds Sterling (using calculators such as xe.com I find that for every $1000 dollars I deposit into my account I loose approx £25 due to Santander's less favourable exchange rate. So a hidden charge if you like.

How can I find out if the same will happen with a US dollar account? What happens when I want to withdraw money from the account in Pounds Sterling - what exchange rate do they use?

Or am I making a fuss over nothing with regards to Santander? Perhaps no one would give you the published exchange rates I refer to (in which case what's the point in them). Am I getting a good deal from Santander after all?

catokelly

You should avoid sending US Dollar funds to a UK Sterling account as you will be subject to the banks bad exchange rates and fees - it is a bit cheeky for them to tell you to check the rate on Google!!

Have you considered using a currency broker, they can receive US Dollar payments directly into their US Dollar account and will then negotiate the funds into Sterling for you (they will always confirm the rate beforehand converting the Dollars) and you could choose to book the rate or wait, once you have agreed the rate, they would wire the Sterling to your UK account as a same day transfer.

I use Thomas Exchange for this, their base their transfer rates on live market rates, are much better than the banks!

PS: Regarding the rates on XE, they are the interbank rates, so you should just use it as a guidence, however the larger the amount you transfer, the closer to that rate you would get. Santander would offer you the 'tourist rate' which would be a standard rate not based on the live rate.