Cashing a US cheque - Please help :)

Elle7

So, I've just received a cheque from the US.

I didn't want to be paid by cheque, but it's here now, so I suppose I have to live with it!

My only concerns are that it doesn't look like a cheque (no bank account numbers etc, just my name and address and the amount) and that it's going to cost me a lot to cash it.

It's for £1000. I have a HSBC bank account. Could anyone advise on how much it's likely to cost to pay it in, and when the money would clear?

It's already two months overdue, so I need to pay it in today really, but I don't want to loose most of it in fees.

dzug1

You won't lose 'most of it' in fees - I'd guess around £50 max in fees and exchange rate loading

Short of opening another bank account with a bank with lower charges I doubt if you've got a real alternative.

inmypocketnottheirs

Is it a US cheque, drawn in dollars or Stirling?

Elle7

It's in dollars. So I've got the exchange rate to factor in.

£50 doesn't sound too bad! I was told to expect HSBC to "steal" a few hundred, so I'm glad that's not the case.

alanq

Elle7 wrote: »

It's already two months overdue, so I ned to pay it in today really, but I don't want to loose most of it in fees.

Depending how the cheque is processed it may be another couple of months before you see your money.

I have only used Nationwide. Here is its explanation.
http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1347

Elle7

alanq wrote: »

Depending how the cheque is processed it may be another couple of months before you see your money.

I have only used Nationwide. Here is its explanation.
http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1347

Grrr, that's annoying. Paypal would have been so much simpler!!

The cheque has an invoice attached so I'll take that in with me in the hope that it speeds things up.

I can't find anything about foreign cheques on the HSBC website...

Thanks for all the help so far

alanq

Google turned up a PDF of HSBC current account Ts&Cs but the link is broken. It can be viewed in Google cache. I expect that the Ts&Cs have been superseded by later ones.

https://docs.google.com/viewer?a=v&q=cache:b-kE61dWAUIJ:www.hsbc.co.uk/1/PA_1_1_S5/content/uk/pdfs/en/34519_bank_account_ts%26cs.pdf+&hl=en&gl=uk&pid=bl&srcid=ADGEEShF6IGcgJ_sLyizVqpClLqjrKqp0YIU6RD0nHz4QHnR2_4iDv91yqh8aHcfgp8Zia7Y0f6GKLH5tQ8cJiGxELNFwBzFgIAlgYDggaCqsgQSsmkmfSxOgOhFYkgWmYy3nvtRNKEt&sig=AHIEtbT_oTECOOko6Oqe2j7xZvLdsu_Wpg

See 21.14 Foreign Cheques

Elle7

Just to update - took the cheque in at 4pm. Endorsed it and gave it to a nice man who said he'd send it to headquarters and it'd be converted to sterling and paid to me tomorrow.

He didn't mention fees or anything, and I did ask if there was anything else I need to know/pay for, so I'm pleasantly surprised!

inmypocketnottheirs

Elle7 wrote: »

Just to update - took the cheque in at 4pm. Endorsed it and gave it to a nice man who said he'd send it to headquarters and it'd be converted to sterling and paid to me tomorrow.

He didn't mention fees or anything, and I did ask if there was anything else I need to know/pay for, so I'm pleasantly surprised!

I would think that although they may allow you to draw on the funds, if the cheque does subsequently bounce it may take several weeks or months possibly and your account will be debited.

If you are expecting more payments from the US I would look at opening an account with https://www.citibank.co.uk where you can have a US dollar account, a sterling account and a debit card that you can switch between the two accounts, albeit you can only use the card for dollar transactions in the US. You would however be able to give the US account details to the party that are paying you and then make immediate transfers in real time between your accounts. It will cost £8 per month for the account so you will have to decide is the speed and convenience outweighs the cost.

I travel monthly to the US and I use a Citibank account, as it gives me free withdrawals from Citi ATMs as well as free debit card transactions. You can also have a US dollar cheque book if you needed to pay for anything by cheque.