Foreign Currency (US Dollar) Bank Account - Help Please?

mike_ross_blacky

Hi!

I've just registered here, but after having a quick read, it seems like a very helpful forum.

I'm a British expat, currently being paid in cash in USD (not in the US). My company wants to change this and wants to pay me directly into a bank account.

The problem with this (at least from my perspective) is that the wages i'm being paid is tied to the value of the USD. At the moment, USD is fairly weak compared to GBP, and it means that - whilst not spending said money in Dollars, and probably waiting for a while before needing it in GBP - I'm effectively "losing" value by not holding the currency in USD. Of course, this is only true if the British pound weakens compared to USD in future - which is what I'm hoping for.

I will not need to spend any of these earnings for a few years, at which point I'll convert them to whatever currency I need and use the money for a deposit on a house.

I'd love to be able to open a USD account in the UK, but all of the ones I can find via simple google searches either say "currently unavailable", or have very large deposit demands.

I currently have an account with Santander and with RBS in England. I can find something online regarding an RBS account in USD, but - although it's not exactly clear - it seems as if it's a business account only.

Could anyone advise me where to look to open a USD account? Or advise me as to whether this is the right thing to do?

I'd very much appreciate any help; I'm at my wit's end and it's not really my area of expertise.


TLDR: Can anyone advise me of a good USD bank account based in the UK? (I guess a current account, but I'm unsure)

grumbler

If you live abroad, why do you want an account in UK? It's much simpler and cheaper to get it where you live.
In UK you'll either pay for it or have to maintain a big balance while getting zero interest on it.

mike_ross_blacky

grumbler wrote: »

If you live abroad, why do you want an account in UK? It's much simpler and cheaper to get it where you live.
In UK you'll either pay for it or have to maintain a big balance while getting zero interest on it.

It's not simpler or easier to get an account where I live. Nor is it safer. I live in a country where things are very much in the past in certain aspects, especially the whole "doing things legally" jive.

For example, a small account my wife has here, with a local bank, is refusing to let us take our money back. We can take them to court and get it, but they know it's not worth it for us. We've called the police, but when the officers arrive, they either make us leave the branch immediately, for "causing trouble", or they receive a bribe and leave. Luckily it's only about four grand, so it's not going to kill us, but looking an 18 year old girl in the eyes as she flat out tells you you can withdraw a maximum of less than 3 dollars per day is the most aggravating thing in existence. (Yes, the contract we signed states we can remove our money at any time, at the expense of any interest gained during the deposit time).

This is the story with the majority of banks or institutions here.

I want a safe place to hold my money. I'm open to accounts in other countries, if that's a possibility, but not the country of my residence.

IS IT a possibility to open an account in the EU, such as Germany, France or somewhere else more stable?

grumbler

mike_ross_blacky wrote: »

...
IS IT a possibility to open an account in the EU, such as Germany, France or somewhere else more stable?

For some ideas see: How do I get a € Euro bank account?

Thrugelmir

mike_ross_blacky wrote: »

Of course, this is only true if the British pound weakens compared to USD in future - which is what I'm hoping for.

More or less at a 12 month low. Seems like a good time to buying GBP.

InsideInsurance

Does it have to be the UK or EU?

Most UK banks have an Offshore subsidiary based in the Channel Islands, Isle of Mann etc which offers ex-pat type banking arrangements in multiple currencies

http://international.lloydsbank.com/international-current-account/?WT.mc_id=43700003247252381&WT.srch=1&gclid=CM2c4sKSi8ICFcrLtAodOjcAoQ Lloyds for example requires you to have EITHER a £50k salary OR £25k deposit within 3 months

mike_ross_blacky

InsideInsurance wrote: »

Does it have to be the UK or EU?

Most UK banks have an Offshore subsidiary based in the Channel Islands, Isle of Mann etc which offers ex-pat type banking arrangements in multiple currencies

[link removed - apparently I can't post links as a new user] Lloyds for example requires you to have EITHER a £50k salary OR £25k deposit within 3 months

Thanks for the replies everyone!

Nope it doesn't have to be EU or UK; I'd just assumed that it might be easier that way. I'd heard US taxes can be confusing, and I'm not sure if I'd have to do anything or declare anything simply to have a bank account over there (if that's what you were suggesting).

Is there anything to be worried about or wary of if a bank bases its foreign currency dealings Offshore, such as in the places mentioned above? Sorry if it's a stupid question

Either way, I'd still be interested in some more advice!

grumbler

I don't see how an offshore account is better than, say, a UK-based US Dollar Current Account - Citibank (free if the balance is $2K+)

mike_ross_blacky

grumbler wrote: »

I don't see how an offshore account is better than, say, a UK-based CITIBANK LINK (free if the balance is $2K+)

Thanks! I had a quick read though, and it has the following stipulations:

Please note: this account is currently unavailable for new clients unless it is opened alongside a Citigold Current Account.

Which doesn't sound too bad, unfortunately:

Citigold is available free of charge if you have an average monthly balance of £75,000 (or currency equivalent) across all your Citi accounts, including investments, or you hold an account with Citi International Personal Bank in London, Jersey or Switzerland. If you don't meet either of these criteria, a monthly fee of £25 will apply.

And I just don't have the funds available to do that

Do you know if this is a fairly common thing? (To require such a large sum of money simply to open a USD account)

InsideInsurance

mike_ross_blacky wrote: »

Is there anything to be worried about or wary of if a bank bases its foreign currency dealings Offshore, such as in the places mentioned above?

They are subject to local law/ regulation rather than UK or EU. As you will see on http://international.lloydsbank.com/compensation-schemes/ they have slightly different deposit protection schemes than the UK so you are covered for £50,000 rather than £85,000

You may want to take a view on if you think the Jersey/ Gibraltar etc governments fund would be able to deal with a bank defaulting and having to pay out each of its customers up to £50k. Personally I wouldnt be too concerned with any British Oversea Territory

ladymay

Hi there,

Not sure if you've already sorted this, but I have a Citibank account with three sections: USD, GBP AND EUR. There is a charge on the account but it's £5 or $8 a month. And the exchange rate for transferring funds isn't too bad. When I was paid in dollars it was the simplest way for me to bank. Hope that helps!