Foreign Currency

Graeme7777

Hi,

I am going to receive a USD payment from my employer, currently designated to be deposited my UK high street bank account.

I am concerned that when the USD hits the GBP account it will be converted to GBP at a lousy exchange rate and/or attract large fees.

Is this is fair concern and if it is what is the best account that I can set up in a day or two to receive the USD cash and will not have such a punitive cost when it's converted to GBP?

sausage_time

Wise (previously TransferWise) is a common recommendation here. You can request a US bank account number for direct deposit in US$ and from there send on to your bank account at a competitive rate. See the Wise web site for rates relevant to the size of your transfer.

BikingBud

https://forums.moneysavingexpert.com/discussion/6672972/foreign-currency

Do they normally pay you in dollars?

What is the driver for this payment in dollars?

Why can they not pay it via standard payroll?

Although you may not get a good rate then but the change rate ask might sit with them.

PRAISETHESUN

Agreed that if they pay USD into your GBP account, then you will get ripped off by fees, poor exchange rates, or both.

I would recommend being paid into a USD denominated account of some description and managing the currency conversion yourself. I would also recommend Wise, as suggested above. I use them for AUD/GBP conversions and find them competitive and the fees transparent.

flaneurs_lobster

Can you tell us the likely size of the payment?

A few hundred $ is probably not worth the hassle of setting up a new account.

If it's more than this (or it's set to be a regular occurence) then yes, a USD account would be a good move.

I'd echo @BikingBud's comments - why not payroll? Be careful that such payments don't make you "of interest" to HMRC or your bank's anti money laundering department.

Brie

I wouldn't expect you to get a lousy rate - just whatever the FX rate for the day is. But yes to fees. I know my bank wants something like £35 to cash a USD cheque. And then 10 days for the funds to clear even if it's a certified cheque (aka guaranteed by the bank that backs it). Bank transfers may have a lower charge as they are effectively automatic but still wouldn't be free.

An ex employer of mine annoyed me by paying a share portion with a cheque for 97c in US funds, so maybe worth 80p. They had posted it to me from the US and because I knew the fees were higher than the value of the cheque I kept telling them the cheque hadn't been received. I'd be sent a new cheque (which cost them ?? air postage from the US plus time etc) and would wait a couple of months and tell them again it wasn't received. If they'd posted me a $1 bill it would have been much better for all concerned. I even suggested that they make out the cheque to a family member who had a USD account or give the money to charity but they wouldn't do it.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82039551#Comment_82039551

The OP's definitely right to be concerned: you need to watch out for the banks' margins e.g., for less than £10k Lloyds will take 3.55% and a fee of £7 for USD deposits >£100. I second looking at a USD account with Wise.

"A person in the United States makes a payment of $1,000 to your account. If the current GBP/USD wholesale rate is 1.2600, the Lloyds standard exchange rate applied to the incoming payment would be 1.3047, based on our current margin of 3.55%.

In this example, if we receive $1,000, this means you’ll receive £759.44 in your account after we charge our £7 fee."

https://www.lloydsbank.com/help-guidance/everyday-banking/payments-and-transfers/receive-international-payment.html

Maegi

Whilst not as good as Wise USD account, some UK banks offer USD accounts and multi-currency products like HSBC Global Money that can hold USD. You can then convert at your leisure.