OliverG

Hello,

I'm a Londoner working in NYC for six months (as of the start of April 2015).

I'm being paid in pounds into my UK and account, but spending dollars here in New York.

With the dollar rising against the pound, I'm getting stung already, but what's really killing my finances are the non-sterling transaction fees I'm being charged by my UK bank whenever I use my card or visit a cash machine here (and that's before we get into the bad exchange rate you get).

Because I'm only here for six months, I don't see the point of opening up a US bank account. And it wouldn't help much anyway, because I'd still have to transfer pounds into it.

Here's my question: does anyone know of a quick fix? Some kind of method where I can use a third party card or account that would only charge me once when I transfer money in? Maybe PayPal or some kind of online firm offers something of this kind?

Like I said, I'm keen to avoid setting up a full blown US account, but if there was some kind of card invented for exactly this, that would be helpful.

Any advice appreciated.

Bob

Open a US bank account.

Use xe.com or similar to transfer money at a better rate.

Or get a bank "gift" card and load it up to the brim.

Still better off with a bank account.

wtkp0u

I think your best bet would be with a UK issued credit card that has no foreign transaction fees (other than their exchange rate).

If such a thing is available. And it wouldn't help you with cash.

tht

I used one of these before I moved here, but was visiting frequently:

US Dollar Current Account | Euro Current Account - Citibank that would also give you a check book.

petitefrancaise

It takes 30 minutes to open a bank account - I know because my relo agent told the guy he was being timed!
Then get a currency transfer account set-up (we use World First but there are others recommended here)

Transferring money from your UK account to your US account is easy.

Springy6

We've got a Norwich & Peterborough UK bank account which we can use at no cost anywhere in the world. We just use the cash machines and visa debit as if we were in the UK. I'm sure other UK banks have a similar account.

BerkshireBugsy

Interesting but I'm curious about the detail of this. You may not get transaction fees as such but what sort of exchange rates are you getting?

hungryhorace

I don't remotely understand the hesitancy to setup a US bank account, seems like a no brainer to set one up to me.

But, to answer your original question. You should apply for a Halifax Clarity card. Travel credit cards: the best credit cards to use abroad - MSE

hungryhorace

With the Halifax Clarity card, the interbank rate at the time of purchase is charged.

zzrmark

I use a Fairfx prepay credit card, which offers a reasonable rate of exchange. Can be used to withdraw cash from an ATM but not for free - although there are very few times I find I need much in the way of cash, so I tend to bite the bullet and withdraw a reasonable amount on it from a Wells Fargo branch whose ATM charges a fixed rather than percentile fee (currently 2$). Fairfx charge 2$ for a cash withdrawal, so for four bucks you want to be withdrawing a fair bit!!!
Only drawback is that if your card gets nicked then you've got very little in the way of protection and with Us card usage practices you'll probably find the card emptied before it gets stopped!

andrewlohnes

The exchange rate has gone down 3¢ to 1.46 in the last 24 hours

JinxyCat

We use UK Forex (UKForex | International Money Transfers | Online Money Transfers |) to transfer money from our UK to US account, exchange rates seem ok compared to others - but we do get charged a fee to receive funds into our Bank of America account.

I know it can seem like six months isn't long enough to open an account for, but I'd still recommend it to save on fees.

Pulaski

It sounds like the funds are being wired to your BoA a/c. You might want to find out if UKForex can send the funds by ACH, which would mean that you will not be charged by BoA for the credit.

Hanco

I live in Georgia. Opened a US bank account the Monday after I got here. Don't delay, just do it. Minimum $ to have in account for free banking (1000 in my case) or pay $12 a month - affordable anyway. Can close it easy if and when no longer needed.

I'm paid in sterling too. The Hfx Clarity is the UK card I use if I must use a UK card because of the nil transaction fee and reasonable rate of exchange. NEVER use NatWest / Lloyds / TSB / or standard Halifax cards - they are extortionate!

I do bi-monthly / tri-monthly money sending. Halo Financial (Transfer Money with Halo Financial | Best Exchange Rates) or TorFX (Bank-Beating Exchange Rates, International Money Transfers | TorFX) are the two I have used.

Process with Halo/TorFx is that you agree the amount of currency you will buy for a set amount of Sterling. Then within agreed time you make the move of cash from your UK account to them (easy done online, no charge at all and normally is very fast). They send to your US account and in total, 3 to at most 5 business days it is available in the US account.

I get a good exchange rate (not always what they have on their website as that is the teaser rate as I call it, or as they call it "the rate as it was when last updated"). TorFX will open an account online for you to login and agree your contracted amounts. Halo is an email/phone call. I never have to wait long.

No fee on top of the rate you get from TorFX or Halo Financial.

Banks here charge to receive the wire transfer, $15 with my bank.

I set myself up here to live, based on my undetermined time period. Day 1 I opened the bank account, get it funded well, go back to bank and apply for a Secured Credit Card within a week or so, and they take some funds from your current/"checking" account as security for the credit limit ("Credit Line") you agree with them. They hold those funds. 7 months later in my case the funds are released back into my checking account and my credit line is increased because of my good spending and paying back behaviour

Anyone will tell you, build up credit line asap.

Good luck.

Hanco

As always, your experience is valuable Pulaski. I had not thought of asking this. I've only spent $60 or so on wire fees, but that's a night out of funds I could save!



Now I just need to check what ACH is...