Best US Dollar Account

inmypocketnottheirs

juliusceasor wrote: »

If it is opened online in the UK and by default is the money held in it declarable or known to the UK tax authorities? or is tax paid to the US authorities on interest earned...? please

Funds declarable to UK authorities. Even US funds are declarable here. It is a condition of the account that citibank are notified if the account holder becomes US resident.

HTH

Chuffy2

I have just arrived in the US on a 3 year work visa and had no problems opening an account with BOA on the day I arrived. Although US bank accounts, other than low interest student accounts, appear to have an admin fee per month unless you pay in regularly - i.e. salary.

My UK account has, and probably always will be, a Nationwide account. This is probably the best account around for getting access to your money anywhere around the globe. You can withdraw from almost any ATM with no loading fees or commission. The only fee would be the charge levied by the bank the ATM belongs to, but this would happen irrespective of which UK card you use. The exchange rate is always competitive too.

Back to the original topic of the thread, my own thoughts would be to set up a Nationwide Dollar account when exchange rates are good, and use this account to get $'s for the US. The account seems to be fee free (subject to an intial balance of $1000). I am planning on using this account to get money back from the US (unless anyone has any better ideas). This way I can save my dollars in the States and then transfer a lump sum cheque into the Nationwide USD account and, once exchange rates are good again, move the money over to my GBP account via on-line banking while incurring no exchange fees. Note though, the dollar account has virtually no interest rate so I wouldn't leave money there too long, or the exchange rate benefit will probably be lost.

If anyone sees any holes in this theory, or thinks there are better solutions out there feel free to shout.

inmypocketnottheirs

Chuffy, why not check out the citibank account?

Chuffy2

IMPNT, I had a look at the citibank account and it would be appear to be ideal for transferring lump sums into dollars, and then having access to you dollars in the states, with the added benefit of a $ debit card.

However, going the other way (moving dollars from a dollar account back into a GBP account) both the nationwide and the citibank account seem tied. I guess it would come down to the exchange rates offered by the individual banks, and their embedded commission policies. At present, Nationwide have the upper hand for me as I am already half way there - I have my current account with them and can compete the transaction via my online banking. I will try and phone both tomorrow to find out about exchange rates - missed the boat today due to time difference. Thanks for the advice though.

eira

I have an account with HSBC as I have a 'legitimate need for US funds' (I think that was the phrase) ie-the amount I managed to retrieve from a catastrophic divorce settlement. First Direct vouched for me and helped set up the paperwork at my local HSBC. I needed an ITIN (individual tax identification number applied for through the IRS) you can get this even if you don't work in the States

US bank accounts charge in some circumstances so you need to explore the options. The interest rates are pitiful


But if your kids are students in the US their visa status should give them access to an ITIN which should help them open accounts

mandow

Admittedly, Citibank's UK-based US dollar savings account at first seems a reasonable option. However, I too am feeling exasperated after attempting to apply. What should have been straightforward (I have several accounts in the UK and an excellent financial history) was dragged out for months. I kept receiving incoherent letters requesting information and documents I had already submitted. All my phone conversations were with call centre staff who had no idea what was happening with my application and provided conflicting information. Eventually I was informed that my application had lapsed and I would have to reapply despite this being entirely their fault. Obviously I will not be applying again and would advise others not to waste their time.

Biggles

mandow wrote: »

Eventually I was informed that my application had lapsed

A bit like this thread, really.....

markbodega

You have a couple of options depending on which bank branches your kids have nearby.

As pointed out in a previous post, if they (your children) have a Citibank branch nearby this could be a good option if you also have a Citibank account. Transfers between the accounts will be fee free.

HSBC also offers fees free transfers the US, but you need its Premier bank account (which means you need £50k savings or a £250k mortgage with HSBC, or £75k salary going into an HSBC account).

In both cases though I suggest before plumping for this option you check the exchange rates offered with those of a currency specialist of which there are many in the UK (HiFX, Currencies Direct, Travelex etc.). Often the rates offered by these bank accounts can be quite poor.

If there are none of the above within easy access your kids could easily set up an account with one of the US's many regional banks.

Having been a student in the US for a year at NYU (those were the days!) I seem to remember setting up a bank account was relatively easy. The key thing I needed was a letter from the university stating that I was studying there, proof of ID and of course some money!

When sending money to a US bank from the UK bear in mind the following:

Option 1 - Sending a cheque.
If you were to send a sterling cheque to your kids in the US it will take on average 6-8 weeks for the cheque to clear. We have known cheques to take 3 months but this is very rare!

The transaction could be subject to transfer charges from the US bank (these vary from bank to bank) and the exchange rate will likely be the tourist rate (essentially meaning your kids will receive around 4% less of the money).

Option 2 - send the money electronically via your UK bank
If you send the money via an electronic payment method the good news is your money will only take between 3-7 days to arrive in their account so it's much quicker. However as you're making an international money transfer you'll likely be charged a transfer fee of between £25-35 depending on her bank and again the exchange rate will be poor (again up to 4%).

Under both of these scenarios, neither you nor your son will know who much they should expect in their account until the money actually arrives.

Option 3 - use a currency specialist in the UK.
Cheaper and just as fast is simply arranging a transfer to a currency specialist in the UK. A good currency specialist will advise on the best method depending on the amount. For example, if under £10,000 you could do this by debit or by 'faster payments'. Alternatively if a larger amount you can do this by electronic transfer. Not only will you know exactly how much will arrive in your children's bank accounts as you'll agree the exchange rate at the time of the transaction, you'll save up to 4% on the exchange rate and avoid all the unnecessary bank charges outlined above. Again the transfer should take between 3-7 days depending on how long your bank takes to get us the money. A good currency specialist will also keep you up to date with where your money is within the banking system making everything less stressful.

At the very least compare the rates and charges of your bank to those of a currency specialist. Make sure they are FSA regulated under the payment services directive and personally if it were my money I'd choose one of the larger ones for additional peace of mind.

Hope this helps,

Mark Bodega

Leah_Raskaia

Does anyone have a good experience with an online "UK currency specialist"?
I want to change US dollars into euros but don't want to be bound by my bank's forex rates.
Criteria:
1 - best rates;
2 - won't steal your money (ie receive your wire but not deposit the forex into your other account).:(
I've found Ultima Money on the web, but I'm not sure if I can trust them....:A

Jew

Replying to:

indianvp wrote: »

The Citibank Dollar Current Account certainly appeared to be exactly what we needed. However trying to open one has proved an absolute nightmare. I entered the required information online, then awaited the completed application pack for signature. It never arrived. Calling the 0800 number given was a very frustrating process, as all calls are routed to an Indian call center manned by very polite, but totally unhelpful people. After weeks of waiting, I was advised to start again as although they had all my details on record, they said they could not access the information to send me another application pack. I am now looking elsewhere! Has anyone any ideas please?

And:

mandow wrote: »

Admittedly, Citibank's UK-based US dollar savings account at first seems a reasonable option. However, I too am feeling exasperated after attempting to apply. What should have been straightforward (I have several accounts in the UK and an excellent financial history) was dragged out for months. I kept receiving incoherent letters requesting information and documents I had already submitted. All my phone conversations were with call centre staff who had no idea what was happening with my application and provided conflicting information. Eventually I was informed that my application had lapsed and I would have to reapply despite this being entirely their fault. Obviously I will not be applying again and would advise others not to waste their time.

I've had the same exact problem.

I applied almost 2 months ago online, waited and waited — nothing. Eventually called them, they said they've sent me something in the mail. I never received anything, waited more, kept calling, eventually they even forgot what kind of account I'd like to open (USD current), and only now, almost 2 months later, I received something in the mail.

But guess what it is: an application pack! Something I already filled out online. I'm sending it in soon, attached my proof of ID/address, and am hoping for the best, but since there's been 2 other people here that had no luck, it doesn't look promising...

Has anyone successfully opened a CitiBank USD Current Account? (Without having another account at CitiBank.)

Are there any minimum balance charges? Or is it 100% free?

Should I maybe apply for a normal CitiBank account first (easier?), and then try to get this?

Or maybe I should go into a branch?