regular transfers to student in US

b56c

Daughter is going to study in US for one semester, amounting to between 4 and 5 months. I need advice on how best to manage her finances. I assume it would be best for her to open a US bank account rather than make withdrawals using her debit card from her UK account. Should I consider making one payment to her or monthly payments? Which banks should we consider to cut down on charges etc?

I have a hsbc account and she has both hsbc and santander.

mgdavid

DON'T use banks for cross-border transfers, their charges are far too high. Use an FX broker like currencyfair.com - there are others, that's just the one I've used. A search on here will reveal other similar threads mentioning alternatives.

reclusive46

She's probably better off getting a Norwich and Peterborough current account or Metro Bank debit card (If you live in London). These cards don't charge any foreign exchange fees, so you get the perfect exchange rates. She can just withdraw the cash or use the card purchases then and you can transfer money to her UK account. If she's only going to the USA for 4 to 5 months this by far the easiest and cheapest solution. US checking accounts are loaded with fees.

grumbler

b56c wrote: »

...I assume it would be best for her to open a US bank account rather than make withdrawals using her debit card from her UK account.

Wrong assumption if all her money/income is in ££ in UK.

I guess she still has some time for trying to get a good UK card for using overseas, although for a student this can be not that easy:

• Cheap Travel Money Top cards for spending abroad
  
  

Should I consider making one payment to her or monthly payments? Which banks should we consider to cut down on charges etc?

http://www.fxcompared.com/Content/money-transfer-from-UK-USA-below-3000-amount-1000

gt94sss2

b56c wrote: »

I assume it would be best for her to open a US bank account rather than make withdrawals using her debit card from her UK account. Should I consider making one payment to her or monthly payments? Which banks should we consider to cut down on charges etc?

I have a hsbc account and she has both hsbc and santander.

I studied in the US for a while - having a local account isn't a bad idea - as well as having a 0% f/x UK debit (and importantly a credit) card.

However, the banking system is very fragmented in the US - so knowing what city/state she will be in, is very important to know before deciding what is the best solution.

Regards
Sunil

reclusive46

gt94sss2 wrote: »

I studied in the US for a while - having a local account isn't a bad idea - as well as having a 0% f/x UK debit (and importantly a credit) card.

However, the banking system is very fragmented in the US - so knowing what city/state she will be in,

Regards
Sunil

Agreed with the fragmentation. Things vary by state and sometimes even city.

b56c

Thanks for all of your replies.

We have decided to just use her UK current accounts even though there will be a charge for each transaction.

System

If you give some more details (especially location) then posters will be able to give better suggestions.

However, a commission free credit card is a USA necessity.

b56c wrote: »

Thanks for all of your replies.

We have decided to just use her UK current accounts even though there will be a charge for each transaction.

mgdavid

b56c wrote: »

Thanks for all of your replies.

We have decided to just use her UK current accounts even though there will be a charge for each transaction.

that does sound quite daft, given all the good advice above.
Still, it's your right to ignore it...

agrinnall

b56c wrote: »

Thanks for all of your replies.

We have decided to just use her UK current accounts even though there will be a charge for each transaction.

Madness when you have been given options that do not levy charges (N&P and Metro).

b56c

Information suggests that you have to go into a Metro branch to open a current account and get the card. As we are hundreds of miles away, this is not practical.

To have a fee-free card with N&P, you need to have at least £500 going into the account monthly otherwise a £5 levy will be charged. She will be getting a one-off payment and we are awaiting clarification as to whether that would be considered 'equivalent' to a monthly payment. There is also little time left between now and the beginning of January to get the account set up, have cards issued and inform the student lending company of a change of account. These possible delays could result in her not having access to any cards at the outset.

She will be paying for accommodation and food upfront and will get free transport. As a result she will not need to make frequent purchases. Her Hsbc account will charge £1.50 per transaction so if she withdraws enough to cover her expenses for a couple of weeks - and this won't be a large amount - she won't be charged a huge amount.

So not quite 'madness' or 'daft'.