isi16

Almost ready to move over to Kansas and dealing with different ways to get my money over. I have two small pensions in payment (civil service and military). Both I can have sent direct to my USA bank account- no problem.
Got advice from a transfer company and he gave me advice to contradict that and suggested I would get a better exchange rate by transferring the pensions through them. Minimal cost of £5-£7 per month.

​​​​​​Does anyone do that or just a straight payment into your USA bank?

lansbury

It really depends if you need the money in the US each month, or can let it accumulate in the UK. My Wife and I have our UK pensions paid into our UK bank, and leave it there if the exchange rate is not to our liking. That way we control the rate we get. The fee we pay is 0.4% plus 80p a transfer.

It is a choice between convenience and control. Having it sent direct the rate on the day would be a goodish rate for that day, but it is what it is on the day it is sent but without a fee.

As an aside, in case you are not aware, I believe both a UK civil service and military pension are classed as government service pensions, so if you only hold UK citizenship they are only subject to UK income tax. If you are a US citizen living in the US they can only be taxed in the US. If taxed in the UK you are allowed the same tax free allowance as someone living in the UK. My police pension is subject to the same rules.

isi16

Thanks for your reply. I will only get it sent over maybe half yearly. It's not a vast amount but all helps. So many different companies and different charges so still working out which one to work with. I wasn't aware about the tax on the pensions. I shall have to find out more about that. Many thanks. I think that will be a plus in my own circumstances....i think! I will be a UK citizen, over in America as a legal resident.

lansbury

I think most of us have come round to using Transferwise. They give the mid rate (sometimes called the split rate) and their fee is 0.4% + 80p a transaction. Companies which don't charge a fee give you a rate below the mid rate which means Transferwise usually give the most dollars at the US end where it counts.

Certainly understand how Government Service Pensions are dealt with under the UK/US tax treaty, as it is very specific and where you pay tax on them in different circumstances.

Wirksworth

Hi, there is a new option which I have been using - It is a new startup called Revolut . They offer a " credit" card as an App which you can load from your UK bank. Once you have £ on your card you can change to many currencies which are then held as a balance in that currency. The rate is the best rate I can find and it moves through the day as interbank rates change and you can follow the rates on the App . If you then want to spend in the country where the currency is used you use it as a credit card and you get an instant text of your spend - all very clever It gets better in that you can withdraw cash from an ATM in local currency.
The final good bit is you can send thee held currency to any other bank account and UK to US is transferred n 1-2 days . I tried it to transfer $30K in batches of $5K and it worked fine. I gather they now have a UK banking licence so it may be where I end up banking too - worth a look.

isi16

Iansbury, I've had a good read about the pension and tax. I now know what to do on that-much appreciated.
I've used transferwise a lot to send money to family and they have been great. The best company I've been researching for my larger transfer is Halo Financial and it seems better than transferwise. You can lock-in the rate (they do that for you) and its a straight 0.4%. More to it than that but I like what I've heard and read so far. Will still check out others. Thanks for your advice :-)

isi16

Winksworth- that sounds as if it may be useful for me in the short term while looking for a house. I will certainly check it out. Many thanks!

durham_lad

I received a small UK pension for a good many years while living in the USA. I let it go into my UK bank account as we found it useful to maintain a UK account, and a regular small sum going in was an easy way to keep it active.

odonabit

I have had all my UK accounts (including National Savings)...shut down compulsorily dues to FATCA regs.... except for my Halifax current account.. I get my 3 UK pensions paid in there and then send the cash free to Worldfirst in London. They are a currency broker with very low charges compared to banks.. and a good exchange rate. It worked well and less than 1 hour from the Halifax to Chase in the US....Now worldfirst have said they have shut down their US operation so I am looking for a new currency broker in the UK where I can do my free GBP transfer from the Halifax... Any ideas ? ps I worry about my last UK account being closed down...any ideas if that happens ?.

Giantaxe

There's a suggestion earlier in this thread :-)

I, too, live in fear of this happening.

durham_lad

odonabit

Thanks Giantaxe and Durham lad.........looks like we are all in the same boat......and dreading the email from our UK bank saying they have caught up with us....
I was talking to Hermex in London yesterday (they are big), and they were humming and arring about taking me on..
Told em I have a UK passport and birth certificate and a regular Halifax bank account, but it wasn't cutting much ice...
Told em my cash would be just passing through them so they would not be a bank account as such

They said their compliance dept would "get back to me" today (Tuesday) .....so far zilch
I will check out your suggestions today ...Many thanks folks...

odonabit

================

Just reporting back on Transferwise....

I contacted 3 forex agents in London yesterday and none of them would touch me coz I am US resident...

Told Them UK bank account ..UK passport... nope..no good


Called travelwise and asked if I could free transfer from my Halifax account to their London account in GBP and they said yes....Signed up using a scan of my US driver's license (front and back)

Went to Halifax website and set off the free GBP tsfr to London, and travelwise sent me an email confirm 10 seconds later ! Even before I had done a screenshot of it leaving the Halifax !

Got another email 2 mins ago saying it will be in my Chase $ account in the morning...

The ex rate is the OANDA rate with no 'spread' cost...and then a simple, less than 5 gbp per 1,000 quid charge........ I moved 5k gbp for 20 quid as a test...
That's great and the software is deliciously easy !!

Worldfirst does a 'spread ' cost with no admin charge...probably works out the same...

So I am HAPPY once again that I have a new simple, easy, economical agent .. until halifax closes my current account for FATCA, at which time I will be thrown to despair once again lol !

Thanks Lansbury !

durham_lad

odonabit

Yes very happy with transferwise as an agent so far...Nice software... I have been on Barclays International website a few times and its says ALL welcome except "US persons"...Reckon HSBC was the same if I remember rightly.... and in any case they have huge fees even for other countries.. ..... So I guess we have to keep worrying until FATCA gets swept away as the final sop to rich Americans who want to hide their dough from the IRS...or ease the reporting burden at least.. I have had my Halifax current account since 1984, so I would be sad to be chucked out of it...

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