Receiving large amount of USD into a UK Bank Account

spacetufty

Hi, I will shortly be receiving a large amount of US Dollars as part of some share options being realised. They will be paying the USD amount into my nominated account. I've spoken to my bank, Halifax, who told me that they'd charge a flat £7 and use a mid range rate to convert to GPB. My question is: is this the best way to do this? Will i get a better rate if I get the payment made into a different account? The only issue is that I only have 2 days to decide where the money will go. Thanks for any help you can give!

ERICS_MUM

When the bank says 'mid-range rate' do they mean mid-way between the buy and sell rates ? If so, not good. First I'd ask them to give you an indication of the rate thats 'live' at the time you ask. They can do that, might not want to.

There are other forex companies but I can't recommend any, never needed one.

Do you need to convert to GBP or could you put them on a USD account in the UK ?

grumbler

spacetufty wrote: »

Hi, I will shortly be receiving a large amount of US Dollars as part of some share options being realised. They will be paying the USD amount into my nominated account. I've spoken to my bank, Halifax, who told me that they'd charge a flat £7 and use a mid range rate to convert to GPB.

I think this was a lie. For small amount you typically lose ~3% compared to the current interbank rate - this is on the top of the flat fee that some banks charge and some don't. For big amounts the % you lose can be smaller, but not 0%.

My question is: is this the best way to do this? Will i get a better rate if I get the payment made into a different account? The only issue is that I only have 2 days to decide where the money will go. Thanks for any help you can give!

The only way to do this better is to get the money transferred to a currency broker that you make arrangements with. The process is generally the same (reverse) as when sending money abroad: Sending Money Abroad


https://www.fxcompared.com/money-transfer/USA-UK?amount=100000&bType=1&aDir=0&ref=filter

http://www.mycurrencytransfer.com/money-transfer-to-UK/100000-USD

Also, check transferwise.com.
For the interbank rate see, say, xe.com.

spacetufty

Many thanks for your replies. I've just heard from my boss that the company may use a currency broker so I will get it in GBP anyway; but we'll see. I'll research the links you've provided. Thanks!

eDicky

You can see the current mid-market USD/GBP rate on XE.com, which corresponds near enough to the interbank rate. You need to get as close to this as possible when converting, but Halifax or any bank will not give you better than about 3% spread, unless you negotiate a better rate for the amount involved. So be careful about this if you do have to receive USD.

Kim_13

Whatever bank/building society it is paid into, you should inform them in advance as foreign currency transactions have featured in a few cases posted on here where the account holder has been served with a 60 day closure notice.