# UK/US Banking



## Transatlantic (Jun 26, 2007)

Hi guys,

I am moving to california in the Autumn and I wanted advice on what is the best way to transfer my money from my British bank to a US bank.

Can I take my cheque book with me and deposit a cheque into my new account, or should I obtain a cheque drawn on an american bank instead. Is it really that some small retail outlets would not accept my British debit/credit cards? 

Regards,


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## newtoOZ (May 24, 2007)

You could deposit a check drawn on your UK account, but the fees might be high. It probably would be cheaper to have your UK bank wire the funds to the US bank once you open an account.

Some places don't accept even US debit cards unless they are associated with Mastercard or Visa, and therefore get processed like charges. There are even some places that don't take credit cards and want real money.

You'll find opening an account in the US simpler than opening one in the UK, I think. One thing to remember, US checking accounts generally do no come with overdraft priviliges, and any check that is not covered by your balance will bounce. Banks also tend to put inordinate holding periods on checks for them to 'clear' when they all clear in three days maximum. It's an opportunity for them to have you make a mistake and to collect more fees. Meanwhile they earn money on the cash they won't let you have.


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## awayinamerica (Aug 1, 2007)

The U.S. patriot act has created a lot more restrictions on opening a bank account in the United States. You need to bring in many forms of ID. Even U.S. citizens can have a lot of trouble opening a bank account.


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## synthia (Apr 18, 2007)

I haven't opened a bank account in ages, but why would bank accounts be more restrictive? In the UK I believe you need references to open a checking account.


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## gkloken (Aug 9, 2007)

Your bank will have a reciprocating Bank in the USA and worldwide. 
They can help you open an account and transfer money into that account. Wisdom dictates to retain some money in your bank account at home until you are settled here. Without your Social Security card/number here you can use a TIN or tax ID number which you apply for at the IRS. Quick and easy. 
Use that number instead when opening an account with a Debit card connected to your checking. 
Provided it has Visa on the Debit card you can use your current Debit card to withdraw money at any ATM 
There are Banks that open accounts without ay number like Bank of America. Not all banks are in all states though , but you can use the Debit Card .


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## atlast (May 24, 2007)

I definitely wouldn't use a check, because they will charge all kinds of extra fees for the agony of processing paper, then more because it is foreign paper.


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## ZARTAN (Nov 18, 2007)

citibank seems to be real good at transfering money. you can do it all online if you have an american and british citibank account. you can use your british credit cards but in america, they dont use chip and pin, but rather signature (old school). you can also deposit a british cheque too, although it takes a while. i have found washington mutual to be the best bank in california with a lot of branches and no fees.


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## gkloken (Aug 9, 2007)

atlast said:


> I definitely wouldn't use a check, because they will charge all kinds of extra fees for the agony of processing paper, then more because it is foreign paper.


I guess it must vary from bank to bank JP Morgan -Chase or just Chase Bank have handled all my international payments checks and wiring without restriction hick ups or hold ups and extra charges. Just the standard charges we pay all over. I received Checks from outside the USA and did not experience any problems with it.


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## gkloken (Aug 9, 2007)

newtoOZ said:


> You could deposit a check drawn on your UK account, but the fees might be high. It probably would be cheaper to have your UK bank wire the funds to the US bank once you open an account.
> 
> Some places don't accept even US debit cards unless they are associated with Mastercard or Visa, and therefore get processed like charges. There are even some places that don't take credit cards and want real money.
> 
> You'll find opening an account in the US simpler than opening one in the UK, I think. One thing to remember, US checking accounts generally do no come with overdraft priviliges, and any check that is not covered by your balance will bounce. Banks also tend to put inordinate holding periods on checks for them to 'clear' when they all clear in three days maximum. It's an opportunity for them to have you make a mistake and to collect more fees. Meanwhile they earn money on the cash they won't let you have.


I do beg to differ here. The USA bank systems are the most user friendly that I know of. Definitely easier than the British banks I have dealt with. 
"Inordinate holding periods" and "the need to get more money from you" or "you to make more mistakes etc" is definitely not part of my experience here.
I cannot for the life of me see why "they" would be out "to get you "? ?? 
This a first world country for heavens sake !


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## synthia (Apr 18, 2007)

gkloken said:


> I do beg to differ here. The USA bank systems are the most user friendly that I know of. Definitely easier than the British banks I have dealt with.
> "Inordinate holding periods" and "the need to get more money from you" or "you to make more mistakes etc" is definitely not part of my experience here.
> I cannot for the life of me see why "they" would be out "to get you "? ??
> This a first world country for heavens sake !


What? Please re-read the post you quoted. Nowhere does the poster write any of the things you put in quotes in your post. Where did all that come from? All the poster did was point out some differences between the American and US banking systems.


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## gkloken (Aug 9, 2007)

Please read the last three sentences... I have them quoted for you .... ! 

_"Banks also tend to put inordinate holding periods on checks for them to 'clear' when they all clear in three days maximum. 

It's an opportunity for them to have you make a mistake and to collect more fees._
Meanwhile they earn money on the cash they won't let you have."


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## synthia (Apr 18, 2007)

They want to make money. I have had numerous fights with banks that took forever to clear checks that clear instantly. While the fees may seem minor to one person, when they are applied to millions of transactions they add up to a lot. There have been several articles in the press over the last few years about the big profits banks are reaping as they attempt to charge fees for everything.

I know, and said, that the US banking sysem is much easier to deal with than the UK system, but did want to point out what pitfalls there are.

And while I didn't say they were 'out to get you', I did write the other things, though only in the context of the fees, not in terms of being friendly or helpful or in reference to any other service. I'm sorry if I wasn't clear.


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## aa88 (Nov 26, 2007)

Best bet is to avoid using banks all together. Try looking at some foreign exchange specialists who'll move the money for free and compare the exchange rate they offer with that of the bank. I saved alot of money shopping around these companies when I bought a house in spain. have a look at the sgm-fx website, see what you think


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## JohnSoCal (Sep 2, 2007)

If some of you have trouble with holding periods etc. then why stay with that bank? I have lived in the US for 40 years and have never has any problems with the banks. Personally, I prefer the Credit Unions which offer better terms, and generally higher technology. I haven't had a hold placed on any check for 20 years now and that includes checks of several thousand dollars.

By the way, I do have overdraft protection. It is quite common. The banking industry is very competitive here with many large national banks, Credit Unions, and local banks all competing for your business.


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## synthia (Apr 18, 2007)

One of the reasons I mentioned overdrafts is that people from the UK have left me with the impression that this is the norm, that all checking accounts come with overdraft privileges. It is not standard in the US, and assuming that you had these privileges could be very costly.

And of course I did change banks. That's why I have more than one bad experience. Now, with internet banking, that isn't so much of a problem. My bills get paid on-line, I collect money through direct deposits and PayPal, and I only depost one or two checks per year.


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## Bevdeforges (Nov 16, 2007)

Transatlantic said:


> Hi guys,
> 
> I am moving to california in the Autumn and I wanted advice on what is the best way to transfer my money from my British bank to a US bank.
> 
> ...


To get back to your original question, there IS a check-clearing system between the US and the UK, but it is expensive on a per check basis. Your British credit card should be accepted with no problems (heck, mine is! and I don' t live in the US) but as someone has already noted, you' ll have a fee for each transaction on the exchange from dollars into pounds and that can add up.

The best approach I've found is to transfer a large lump sum via wire transfer that you arrange through your UK bank. There are charges for that on both ends, the sending bank charges based on the amount you transfer (but with a hefty minimum) and the receiving bank normally makes a flat charge for accepting the transfer. (I think my bank charges $50 or so.) But for a one-time or infrequent transfer of funds it works reasonably well.

Do be sure to leave some money in your UK account. It's very handy to have access to a local account when you're home visiting or even just when using your UK credit card (in the UK or online) to avoid exchange charges.


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## Pebble (Dec 10, 2007)

My fiance visited me from England, and he opened up an account with SunTrust in Florida, since this bank seemd to cover a large area of Florida. The only difficulty he experienced was withdrawing from their ATM machine, since their ATM's did not accept his logos on the back of his card. I wish we'd known this beforehand, since an account now exists between him and this bank. He would have been done a greater service had he opened up an account with a bank that accepted his card for cash withdrawals. Of course an ATM bank card with SunTrust eventually would have taken care of this problem, but due to the slow snail mailing of this card he would not receive this bank card in time before he returned back to England. A cash advance took care of this issue with SunTrust, and also most any other ATM machine allowed him to withdraw cash, so long as it accepted his card logo. As far as opening up a bank account in the USA, it is sooooo easy to do. There are no issues/probs involved for anyone in or outside the USA to open up an account with proper id, usually a photo id, residence address- either one in the states or from the country you are from suffices, as well as any other forms of id you may be asked for. The only issues/prob might be for example...that you want bank transfers from your bank in another country that still exists to be put into the new bank account in the USA and it would be a good idea to ask about this being possible beforehand. For example, ask if the bank you are opening an account with in the USA is able to work with your bank in another country. Most banks here in the USA work with banks in other countries. If you are living in the USA for a while or permanently, expect waiting, as an example, for bank ATM/debit cards to take a week or two to be mailed to you in the USA, and possibly longer if you are having the card, etc. mailed to you outside of the country. Most banks want you to do your banking with them no matter where you live, in the USA or outside of the USA. Be sure of what fees, if any, are charged to you first though. Some banks charge extra fees, and others don't, and it depends upon largely where and when you will mostly do your banking with a USA bank. There are different bank institutions, such as government/privately owned institutions/credit unions to choose from, etc.. Credit Unions accept members typically if you sponser them as a business, or know someone/related to someone who has an account with the credit union bank you would like to open an account with. I have always been happy with Bank of America for their going beyond the call of duty service to their members, and the types of services they offer, as well as their having banks all across the USA. If you are opening an account in the USA, and are not a legal resident of the USA yet, have your passport at least for identification, and if you have a Visa provide that as well, although having a Visa is not necessary for most banks in the USA to open an account with. How you want to bank is the most important thing to consider, overall, and not IF you can open an account. Almost anyone as I said is free to open an account with most banks in the USA no matter where they are from with proper personal id provided. You do not have to have employment or referral in most cases either. A minimum deposit may be necessary, however to establish the account with, and this is usually about $25.00, USD, if you are opening for instance a free checking account. No minimum for savings is usually required. However, there again, find out what kind of account you are seeking to have. I am basing much of this info. on free checking accounts. There are different kinds of checking accounts, savings accounts offered at most USA banks. So, be sure to look into what these accounts are as well as what kinds of services are offered from each bank like online checking for instance before opening an account with a USA bank. The bottom line is that whether or not you are living here, visiting here, or planning on living here, having a bank account in the USA makes it much easier and quicker to invest in, and do other business in the USA. It cuts out a lot of waiting time, and red tape in other cases, if you have a USA bank account to use, and do not rely only on a bank that is outside of the USA. On the downside, of banking in the USA, I strongly advise asking specific questions to the bank rep who is helping you open an account, and using your best judgement as to whether or not their bank you are planning on opening an account with is going to provide the exact services you want and need. In otherwords, banks can be like any other franchise, business, who are out for your money, for you to be invested in their bank, and for more members with their bank, even if they are only supposedly holding your money for you, initially. You are to any bank here a potential customer for a loan, and that means interest rates that the bank profits from, for example. USA is commercialized, and all about, let's face it, putting anyone they can into debt and financial crises, even banks who loan you money and most times at such a high interest rate, although they say you must meet the financial criterium first, whether you go for a secured or unsecured loan. A secured loan is one in which you front the cash upfront and eposit it with the bank, and this helps you to build credit for yourself here in the USA with a USA bank, if you cannot qualify for a non-secured bank loan. To qualify for a non-secured bank loan then you will need to provide proof of your ability to pay this loan off with the bank income guidelines that they will go over with you. A joint signer to a loan is another alternative to help build credit for yourself in the USA with a USA bank loan. There are other ways to get a loan, but these I have provided are the typical and most usually sought avenues for US citizens and non-US citizens starting out with little or no credit, or even poor credit with or without debt, etc. I hope this info. helps some of you out there be assured and have the uptmost confidence more than you may have had before, that you will not experience any or very little problems here in the USA to bank. I strongly suggest Bank of America. Any other bank may not help as much, and be more swayful just to get you to open an account with them. I was able to get someone live in person on the phone after business hours with a Bank of America bank card representative to help me gas up my car when my bank card didn't work at the pump. It was an emergency I told the person I spoke with on a payphone, calling for a rep to help me at the number that was provided to me on the back of the bank card, and the rep called me back at the convenient store/gas station to help me activate the card again to use it, And get gas payment arranged with the convenient store/gas station with my bank paying the store directly for my gas, as a back up plan, in case my card still wouldn't work. How cool is that? Anyway, I am trying to get passport to UK now, so I will have more difficulty as USA citizen than a citizen from the UK to open a bank account from what I have read about banking in the UK as a US citizen. Sheesh! What one goes through for love, aye?


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## synthia (Apr 18, 2007)

I'm a bit confused. You can take money out of any participating bank at an atm that supports that network. So if he wanted to take money out of his foreign account, he just had to find an atm that would accept his card. There was no need to open an account at all that I can see.


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## Bevdeforges (Nov 16, 2007)

Pebble,
It isn't all that much more difficult for a US citizen to open an account in the UK as for anyone to open a bank account in the US. What you do need is the proper i.d - usually your passport, though as a foreigner they may need to see your visa or residence permit. 

Or, you could open a foreign account and then convert it to a resident account after you've got the visa and residence permit sorted out. There are a few restrictions (usually) on a non-resident account (probably not so easy to get loans and you may need a bit more cash to open the account in the first place) but it will establish you as a "customer" of the bank.


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## JohnSoCal (Sep 2, 2007)

synthia said:


> One of the reasons I mentioned overdrafts is that people from the UK have left me with the impression that this is the norm, that all checking accounts come with overdraft privileges. It is not standard in the US, and assuming that you had these privileges could be very costly.


One should never assume anything. You should always find out out exactly what you have and don't have. It is the responsibility of the individual to manage their affairs properly.


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## synthia (Apr 18, 2007)

John - Nice idea, but in reality we have to function on assumptions. When I go to the supermarket, I assume the clerk will scan my purchases, bag my groceries, and process my credit card or take my money and make proper change. This assumption has worked for me in every supermarket in every country where I've shopped in one. When you move to another country, especially if it is your first experience living abroad, it is hard to identify what you should question. If you have never in your life even heard of a checking account without overdraft protection, it would never occur to you to even wonder. Figuring out what is different is part of the fun of moving to a new coutnry. Unfortunately, some discovery can be difficult. If you have moved abroad and not made any mistakes because things work differently, you have had a very unusual experience.

Everyone else - Do UK checking accounts require references? Employment information?


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## Pebble (Dec 10, 2007)

synthia said:


> I'm a bit confused. You can take money out of any participating bank at an atm that supports that network. So if he wanted to take money out of his foreign account, he just had to find an atm that would accept his card. There was no need to open an account at all that I can see.


No need to open an account, yes, you are correct about that and the rest aforementioned to support that with.


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## izzysmum04 (Nov 26, 2007)

synthia said:


> Everyone else - Do UK checking accounts require references? Employment information?


*I can't answer for all banks within the UK, but with Halifax I only filled out a form...didn't need any references or employment info (as I am a stay-at-home-Mom)...and then two forms of ID and a piece of mail to verify my address. It was actually pretty simple. *


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## Pebble (Dec 10, 2007)

Bevdeforges said:


> Pebble,
> It isn't all that much more difficult for a US citizen to open an account in the UK as for anyone to open a bank account in the US. What you do need is the proper i.d - usually your passport, though as a foreigner they may need to see your visa or residence permit.
> 
> Or, you could open a foreign account and then convert it to a resident account after you've got the visa and residence permit sorted out. There are a few restrictions (usually) on a non-resident account (probably not so easy to get loans and you may need a bit more cash to open the account in the first place) but it will establish you as a "customer" of the bank.


Thank You for the information. Yes the Visa or residence permit was the bit that I had anticipated needing to open up a residence account with. However, I was unclear about whether I could open a foreign account first, and then being able to convert later to a resident account. Thank you for clarifying that I could do this. Even with a few restrictions, at least it does, as you say, establish me as a "customer" of the bank.


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