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Cash US$ cheques in UK avoiding exchange rates - US Dollar Bank account in the UK

Discussion in 'Business & Tax Advice' started by jaremore7, Jun 11, 2009.

  1. jaremore7

    jaremore7 Registered Member

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    Hello folks,

    I just wanted to share with you how to avoid losing money while dealing with dollars from the UK.

    I'm a UK based BH, some of the affiliate programs I deal with are based in US and pay their affiliates by sending US dollars cheques (i.e. Amazon US).
    The first couple of months I cleared using my regular bank here in UK (HSBC), but I didn't like the fact that they basically used the exchange rate they felt like. After trying to figure out how to open a bank account in the US and realizing it was quite difficult, I decided to check out US banks in UK.

    And I found that Citibank UK offers US dollars bank account. I applied for one of them and I'm really happy with it. The account basically has the following feautures:
    - The account is UK based.
    - The account currency is US dollars
    - They provide an American style cheque book, so you can send cheques in US dollars, that can be cleared in the US without having to pay any weird comission. All the cheques you send will be cleared as if they were coming from a NY based Citybank Branch. People you pay will not even known that you are based in the UK
    - You can cash in US dollars without having to pay any comission.
    - They provide a US dollars debit card, so if you use it buy goods in US dollars, you won't be paying any extra comission or anything like that.
    - It's completely free to open and to mantain.

    You can apply online at --I can post the link cos I dont have enough posts- . Just go to citibank dot co dot uk and click on the right hand side menu : "US Dollar & Euro Current Accounts". Follow the process

    After you complete it you will need to print it and send it to citibank uk. The only documents they are going to ask for is an "official" photocopy of your passport, proof of address and your latest bank statement.

    Maybe lots of you knew about this, I just discovered it recently and wanted to give my 2 cents.
     
    • Thanks Thanks x 3
  2. dsservices

    dsservices Newbie

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    I agree. Absolutely vital info. Thanks a bunch.
     
  3. electrohedtings

    electrohedtings Registered Member

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    What happens when it comes to withdrawing in pounds though?

    Do you just withdraw with dollars and then use the post office or wherever has the best conversion rate?
     
  4. jaremore7

    jaremore7 Registered Member

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    You are welcome guys! I thought it was worthy sharing it, in this "economic climate" with currency going up and down like a rollercoaster is a pain in the ass getting bitten but exchange commissions and other charges.

    I don't know a certain answer for that, because until now the only thing I've done with the money in my account is purchasing stuff in dollars with the provided debit card.

    To withdraw money in dollars from that account what you have suggested seems to be the best option. Or you can even check with the bank because the may even have special conversion rate or something.

    But you can also use the card in any cash machine in the uk and withdraw money. (But you will be paying exchange comission)


    Have you tried contacting citibank and asking this directly? Because I've been looking around their website and I haven't been able to find a "business account" area...... If you prove to them you are the Managing Director (or whatever title you hold) of that limited company, you may be able to use the account you have..... (I doubt it, but I believe it's worthy trying it, isn't it?)
     
    Last edited: Jun 13, 2009