Dollar accounts

sherpa_2

Hi all

My father in law give us regular gifts (like once a year) in dollars, from overseas - between $1000 to $5,000. We have originally taken these in cash, got the best conversation rate we could into pounds then paid them into our savings account. But with all the costs, the exchange rate tanking, and us getting gifts at the larger end these days (pre-empting inheritance) we'd like to open an account in dollars. We bank with First direct/NatWest but they don't offer them, and others only seem to offer them to people who have their current accounts with them. We basically want to be able to receive the gifts with minimum fees, and hold them until we decide what we want to do with them/where to spend them.

I've seen the other thread on Fineco but don't fancy a bank based overseas. Would transferwise do for us? Are there other high street accounts that would allow us to pay cash in too? (We can get gifts through transfer but he will also give us smaller amounts in dollars).

Are there any that pay interest? Or would we be better off biting the bullet of the fees/terrible conversion rates and then getting interest or investing in shares in a UK account?

penners324

Surely with the £ weakening against the US$ you'd get more £s these days on conversion?

antrobus

199995 wrote: »

I wouldn't hold the money in transferwise because they are not licenced as a bank, so they may close your account if you use it this way...

Dunno about that, Transferwise have a Borderless Account. You can "hold and manage money in more than 40 currencies". You can have a Mastercard debit card, spend money, and make ATM withdrawals.

199995 wrote: »

Reviews online say customer service can be a nightmare(so if above happens it might be drama getting your money back)
As they are not a bank you aren't fscs protected on your funds so if they go bust you may loose your money.

They are an EMI, and thus subject to safeguarding. All their customer USD balances (for example) are held in a designated account with Wells Fargo. Their March 2019 accounts show them making a profit of £10.3m, with £800m cash on their balance sheet. That's my due diligence.

199995 wrote: »

Other way round penner and if the op expects the £ to keep falling they're better off holding dollars

No, right way round penner; otherwise they wouldn't be better off holding dollars, if they expected the £ to keep falling, now would they?

OP - I'd be happy with Transferwise. You'ld get a better exchange rate anyways.

sal_III

Transferwise is what you need. Or rather what your FiL needs as the sending party.

He can load USD into Transferwise, convert them into £ at top rates and send them directly into your UK bank account in a couple of clicks for minimal fee.

You can hardly get better conversion and transfer rates than Transferwise, outside of some P2P currency exchange apps, that personally I don't trust.

sherpa_2

Great, thanks everyone