Depositing US Cheque via Citibank

tr_4234

Hello!

I recently went on a 2 month visit to the US. Thanks to moneysavingexpert.com I applied for a Halifax clarity card before I left and I enjoyed the superb exchange rate and 0% foreign currency transaction fees on purchases with the card. :beer:

I will be sent an expenses cheque for around $4,500 within the next couple of weeks. I have a HSBC current account, but I will not deposit the cheque there initially because I have read the charges are extremely unclear.

My plan is to open a Citibank account.

Am I correct that I need to open a Citibank Plus Current Account with a US Dollar Current Account so that I can: deposit the cheque in the US account, transfer it into sterling via the Plus Current Account and then transfer it to my HSBC account?

I would hope to have the money transferred to my HSBC account within 1 month so I need only pay the £8 fee for the Citibank Plus Current Account. I would then close the Citibank account.

Am I missing any other charges? Does anybody know what conversion rates Citibank use; I cannot find an explicit list on their website. Thanks

jonesMUFCforever

If this expenses cheque is a one off then IMO it will not be cost effective to open a Citibank dollar account.
Try one of the forex companies to see what they can offer.

System

Imran310 wrote: »

Depositing US Cheque via Citibank is very costly.

$5?

The OP might be better asking for a wire transfer rather than a US$ check/cheque in any case.

tr_4234

Thanks for the suggestions. Unfortunately I cannot get a wire transfer but I will look at forex companies.

tr_4234

I popped into HSBC in this afternoon and they gave me a "General Price List and Interest Rates" valid from the 1st of September 2013. HSBC will only charge £12 for negotiation of a foreign cheque from £100.01 to £5000.

jonesMUFCforever

tr_4234 wrote: »

I popped into HSBC in this afternoon and they gave me a "General Price List and Interest Rates" valid from the 1st of September 2013. HSBC will only charge £12 for negotiation of a foreign cheque from £100.01 to £5000.

Yes but they will not tell you the exchange rate in advance and it could take up 6 weeks for funds to arrive.

londonTiger

this will give you a slightly poorer currency transfer rate just to cover their backs and a fixed fee as mentioned bytr_4234

The currency exchange rate is ususally based on current market less 0.5% -1% in their favour plus a fixed fee of £12 or something along those lines.

If its a one off I wouldn't worry, just pay it into your regular account a USD account will need to be paid for (most probably - not sure). Plus you will be hit by currency transfer when you withdraw money at the atm to sterling.

leighv

So I called Santander and they told me they charge 10 quid. Went to Santander branch - twice (forgot the cheque the 1st time), and the 2nd time they said anything under 50 quid they will not accept!!!

So what is the best place now to get this exchanged, and I really don't want to have to open a new account. Thanks.

jonesMUFCforever

leighv wrote: »

So I called Santander and they told me they charge 10 quid. Went to Santander branch - twice (forgot the cheque the 1st time), and the 2nd time they said anything under 50 quid they will not accept!!!

So what is the best place now to get this exchanged, and I really don't want to have to open a new account. Thanks.

So are you now the original OP otherwise I am confused.:p

Gentoo365

Why don't you just claim the cost of the transaction fees as expenses?

Then um, do it again to cash in those expenses,

just realised why this is a stupid idea