GBP bank account for US-based people - HSBC Premier Checking?
Jan 5th 2023, 7:46 am
#46
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Re: GBP bank account for US-based people - HSBC Premier Checking?
Reading that link it seems like they do what they can, and that fact that they spread it between banks acknowledges the risk of keeping funds at banks since they won’t be insured like an individuals funds would be up to the the FSCS limits and they are further investing in treasuries which introduces market risk.
The other key part later on the page is also this:
”The protections afforded by safeguarding stay in place even in the unlikely event that Wise were to become insolvent. However, if this happens, some of this money might be used by an insolvency administrator to pay for their own costs. This means the money returned to you could be lower than the total amount you had in your account. It might also take some time for that insolvency administrator to return the rest of your money back to you. “
So they seem to make a good effort with what they have, and are regulated, so the chance of an “FTX” are orders of magnitude lower. I am sure it’s fine for days to day use, but I would not leave the proceeds of a house sale etc there. The same way I would not keep a balance greater than bank insurance limit with any single bank.
The other key part later on the page is also this:
”The protections afforded by safeguarding stay in place even in the unlikely event that Wise were to become insolvent. However, if this happens, some of this money might be used by an insolvency administrator to pay for their own costs. This means the money returned to you could be lower than the total amount you had in your account. It might also take some time for that insolvency administrator to return the rest of your money back to you. “
So they seem to make a good effort with what they have, and are regulated, so the chance of an “FTX” are orders of magnitude lower. I am sure it’s fine for days to day use, but I would not leave the proceeds of a house sale etc there. The same way I would not keep a balance greater than bank insurance limit with any single bank.
Jan 5th 2023, 6:14 pm
#47
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Joined: Nov 2007
Location: Bay Area, CA
Posts: 13,111
Re: GBP bank account for US-based people - HSBC Premier Checking?
So one partner moving to UK, the other to Australia? Sounds like interesting changes! Are they both just 'done' with US living? I'd love to give Australia a look!
Jan 5th 2023, 6:23 pm
#48
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: GBP bank account for US-based people - HSBC Premier Checking?
Reading that link it seems like they do what they can, and that fact that they spread it between banks acknowledges the risk of keeping funds at banks since they won’t be insured like an individuals funds would be up to the the FSCS limits and they are further investing in treasuries which introduces market risk.
The other key part later on the page is also this:
”The protections afforded by safeguarding stay in place even in the unlikely event that Wise were to become insolvent. However, if this happens, some of this money might be used by an insolvency administrator to pay for their own costs. This means the money returned to you could be lower than the total amount you had in your account. It might also take some time for that insolvency administrator to return the rest of your money back to you. “
So they seem to make a good effort with what they have, and are regulated, so the chance of an “FTX” are orders of magnitude lower. I am sure it’s fine for days to day use, but I would not leave the proceeds of a house sale etc there. The same way I would not keep a balance greater than bank insurance limit with any single bank.
The other key part later on the page is also this:
”The protections afforded by safeguarding stay in place even in the unlikely event that Wise were to become insolvent. However, if this happens, some of this money might be used by an insolvency administrator to pay for their own costs. This means the money returned to you could be lower than the total amount you had in your account. It might also take some time for that insolvency administrator to return the rest of your money back to you. “
So they seem to make a good effort with what they have, and are regulated, so the chance of an “FTX” are orders of magnitude lower. I am sure it’s fine for days to day use, but I would not leave the proceeds of a house sale etc there. The same way I would not keep a balance greater than bank insurance limit with any single bank.
I couldn't have written it better myself, but I would add that taking "some time" for an insolvency administrator to return funds could mean years!Here's some context, that I posted recently on another thread, explaining why I have posted the advice about not keeping huge amounts in uninsured accounts, and I will continue to do so on threads where a Wise account is recommended by someone: quite some years ago I spoke to a British citizen who had done fairly well in life, and had bought a small villa in Spain where he and his wife spent their holidays.
When he retired he and his wife intended to move permanently to Spain, and therefore sold their home in the UK, and also sold their villa in Spain, and were in the process of buying a larger villa in Spain. When they sold their home in the UK they deposited the proceeds into a bank account. When they sold their villa they deposited the proceeds into the same bank account, pending the closing on their new villa a short while later. .... Then the bank (not in the UK) where the proceeds of their home sales were on deposit, collapsed!
Worse, the bank was not covered by deposit insurance!! 
Although in the end they got most of their money back, I think the final payment was more than 20 years later, and they didn't get anything back for the first six years, so that put paid to their planned relaxing retirement in Spain.
Last edited by Pulaski; Jan 5th 2023 at 6:55 pm.
Jan 5th 2023, 6:27 pm
#49
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Re: GBP bank account for US-based people - HSBC Premier Checking?
He is an Australian/US dual citizen, and yes, both he and our daughter are done with living in the USA. Their current plans are to live here close to us for the next 10 years or so then both retire to Australia.
I have various friends and relatives living in Australia including my brother, an aunt and a couple of cousins and friends that we have visited from time to time over the last 30 years. Last time we were there (2014) was for 5 months, traveling around and as before we had a great time.
