eversmannx

I've read through a lot of information and set on using TW to make my transfers.
However, I've just received the WP approval and with COVID, there's gonna be a while before i move and get everything sorted.
I've shortlisted Canadian banks, but yet to speak to them and open an account.
What I am looking to find out is about the Transferwise borderless account --- since the forex rate is fluctuating a lot recently (i.e. 1.78 few weeks back, and down to 1.68 recently) is it a good idea to open this account and put some cash in for my first visit? this way i can dictate the rate even before i opened the canadian acc or set foot there.... I am thinking some 10 or 15k, for the initial costs/renting/down payment etc. Since they are regulated, i guess you get the 85k guarantee - but would be good to hear from folks who have done it and used this account.
I also read another thread about having to declare balance in this credit/debit card on arrival or not having to... any advice based on your experience of such will also be great for me.

Many Thanks

Siouxie

https://www.cbsa-asfc.gc.ca/travel-v...d-vdd-eng.html

eversmannx

I think the gist was the same from here Do you need to declare a Transferwise balance?
But i couldn't see if the answer was clear - I assume Yes I have to declare this like a prepaid credit card.

But at this point, my main question is regarding opening this borderless account and putting money in... before having a canadian bank acc? anybody done this? advice against it?

Hurlabrick

I dont agree that you would need to declare it as part of the $10k rule. It is no different than GBP sat in your UK account, it is merely CAD sat in a virtual account offshore. It would be automatically reported on fintrac when you ultimately transfer it into a true Canadian account.

I use Transferwise regularly and rate them highly. But I have no experience or opinion of their borderless account.

eversmannx

My thoughts are the same. Because my other UK bank account for example Starling would allow me to withdraw C$ without any fees, i don't see TW balance any different to this - but if there is no harm in declaring, then no problem.


I tried to transfer from TW borderless acc, where I have C$1000 now - and there is another transfer charge like C$2 - this is absolutely fine, they have even gone to the trouble of describing how these charges workout in a nice pie chart (like office cost / salary).
But it would be good to know the effect of this when a large sum like £50k involved.
1. I transfer via TW to a Canadian bank acc of mine - where i see the fee in one place.
2. I transfer to TW (because i don't have a canadian bank acc), and see the first fee + see the 2nd fee when i do TW C$ to Canadian bank acc. benefit being i take advantage of good forex rates before i move... which could be a few months... and expecting some major political events before that

Siouxie

You can open a bank account online before you get here (with some banks) - to the point where you can make a transfer into it. You won't be able to withdraw funds until you have completed the account opening (i.e. getting a bank card etc.,) by attending a branch. All the banks have newcomer accounts, with various benefiits (free banking for 6 > 12 months, credit card, access to car loan etc.,
https://britishexpats.com/wiki/Banking-Canada

Pulaski

Bear in mind that Transferwise isn't a bank, and so your money isn't covered by deposit insurance. You are reliant on Transferwise doing what it said it will and segregating your money, and while the risk might be small, just be aware that if Transferwise was to go tits-up, your money might be at risk. In short, I think Transferwise provides great exchange and transfer services, but I would be cautious about holding much money in an account with them.

eversmannx

This is the note on their website:
TransferWise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money.

And this is the deposit protection scheme page: https://www.fca.org.uk/consumers/dep...ngs-protection

And I searched and found them here:
https://register.fca.org.uk/s/firm?i...000001EjC6SAAV

So, I assumed you are protected up to 85k GBP.

Maybe someone knowledged on this topic can confirm for sure?

p.s. I recently started using Starling bank, with the same type of understanding - they are not popular (and therefore safe?) as the big high street banks, but the superior mobile based service is worth given you're protected up to 85K

eversmannx

Thanks. Given, it's just the work permit approval letter i received so far... i thought i'd open the canadian bank account when i visit first to get my papers. Have others in similar situations opened bank accounts with confidence?
It maybe a good few months before i move, given everything going around... so if i can't make use of TW option, i may well open a Canadian acc - i don't wanna speculate on forex, but i got a feeling everythings gonna go nutts after US elections. and prefer to have some of my transfers done before.

Pulaski

Yeah, but per the first link you provided, it states the protection is "per bank, building society or credit union", and Transferwise is none of those - each has a very specific legal definition. .... And I don't immediately see where the FCA page mentions insurance coverage.
If Starling is regulated as a bank in the UK, or any country in the European Onion (and many other countries, though not NZ), then your deposit will be protected up to whatever the limit is.

eversmannx

Thank you very much! makes sense.
Maybe this is best used as a top up debit card for much lower amounts.

I think I should look to open up a Canadian bank account? Can anyone advice if I should hold back doing this until I get WP documents in hand as described in #9

Pulaski

Exactly. Transferwise is a great service for exchange and remittances, but I wouldn't recommend holding more than transitory amounts in an account with Transferwise, and it has to be up to each individual to decide how much they are comfortable with holding in a possibly uninsured account.*

* Bear in mind that if the company fails, whether it's a bank or other covered company, even if your account is insured it might weeks, or months, for the compensation to be paid out, i.e. you might be without use of your funds for a period of time even if you haven't lost them.

eversmannx

Hurlabrick I've read your posts on several threads and they've been very helpful! Thanks! if you could confirm a couple of things please...

Given all major banks are more or less the same, I am choosing RBC - they seem to be a good choice for Vancouver.
And I am gonna do most of my transfers using TW.
1. Do banks charge you for receiving large sums?
2. Do banks charge any fees for receiving large sums (using TW)?
3. Are there any limitations on money held at deposit?

I am also considering Tangerine, but read about the wire-transfer scenario in some other posts. They've listed "Free Interac e-Transfer®" now, guessing this is not the same?

Thanks!

Hurlabrick

I started with TD Trust, then opened a Tangerine account, then following a SNAFU with a wire transfer of our Canadian house sale proceeds, opened and now use RBC. Personally, I am very happy with RBC.

I have done ALL of my transfers with TW. I have successfully and easily transferred into TD Trust, Tangerine and RBC. I have transferred amounts as large as GBP50k. You can use TW to transfer into Tangerine no problem (and I have done so successfully), because TW use the Canadian version of direct credit (i.e. it is NOT a wire transfer). Do be very careful with Tangerine as they do NOT accept wire transfers at all (I found this out when a lawyer tried to wire transfer my Canadian house proceeds from their ESCROW account to Tangerine - it took Tangerine 5 working days to return the money to the originator!).

Not transfers from TW, no.

No

None that I am aware of! You are treated like a Saudi Royal when you go into a bank branch and they see your balance!!

eversmannx

Thank you very much! personally, i can't think of any scenario where I need a "wire-transfer", specially since TW will work for paying into Tangerine account like you confirmed. I am keen to understand what exactly "wire transfer" means though, and comparison to other methods of online transfer. is it something similar to CHAPS