This is my first post - please be kind!I receive dividend cheques for approx $55 every quarter from a US company that I hold shares in.However I do not know how to bank them.I have a current account with Abbey. When I went to try and bank one of these cheques they told me it would cost £30 in banking charges and therefore not worth banking the cheque. This sounds ludicrous!I had a quick search on the internet for US Dollar accounts in the UK. HSBC and Citibank came up by they have monthly banking charges applied to the account if you don't deposit £2500 with them. I tried cheque clearance places too, but no good.Does anyone have any ideas? I am missing out on £100 of income evey year and I need every penny I can get!ThanksFoolishgrad
Depending on how often you wish to pay the cheques in, you will probably find the 'big 4' banks charge considerably less then Abbey for paying a US cheque into a standard UK current account - though prices will vary between different banks.Alternatively, if you are converting relatively small value cheques you can use a service like http://auctionchex.com/exchangedp-s.html though their exchange rate won't be as good as that offered by a bank.RegardsSunil
I receive dividend cheques for approx $55 every quarter from a US company that I hold shares inCheck whether the issuer offers a Dividend Reinvestment Program (DRIP) which would enable you to receive dividends in the form of additional shares, and thereby deferring the exchange until you sell some or all of the shares.DW99
Hello foolishgradI had a similar problem a couple of years ago- I had a few small US$ cheques (around $30-$50). I bank with Nationwide so I asked about it, and they charged me £6.50 to deposit each cheque (no advantage for paying in several at once). So it was a high percentage of the value but at least I got a few quid back (and learned not to accept foreign cheques again).However.. I've just checked on the Nationwide site and it now reports the charge is now at least £12. http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1347I'm not sure why it might have almost doubled since I last did this.. however it is still considerably less than you have been quoted by Abbey.As you have found out, for the amounts you are dealing with it's not really practical to open an 'international' bank account, best to look for alternative payment methods if possible.---Freshfroot
Author: foolishgrad | Date: 18/03/2008 17:38:00 | Number: 22186I had a quick search on the internet for US Dollar accounts in the UK. HSBC and Citibank came up by they have monthly banking charges applied to the account if you don't deposit £2500 with them. I tried cheque clearance places too, but no good.Hi foolishgradCitibank charge you for having a USD current account unless you maintain a £2,000 balance acreoss your accounts with them. However, last time I looked, you could pay USD cheques into their GBP current accounts without incurring charges (and they don't charge for GBP current accounts) so this could be worth following up.HTHnewlyretired
Here is the Interest Rate and Charges page where it says that Citi don't charge for paying in USD chequeshttp://www.citibank.co.uk/personal/banking/info/tariffandinterest/charges.htm?merchant=citinewlyretired
Smile charge £8 for clearing a USD cheque under the equivalent of £2000.However, a better option with small US dividends is a reinvestment plan (DRIPS), usually free of any fees via the registrar.
It's a two-step process.1 Take up tenpin bowling.2 Make friends with an American (there's usually several using a UK bowl).Job done.It worked for me ;-)
Thanks guys for all your ideas, I had a look at the company's website and there is a way of switching the dividends from cash to reinvestment. So I will try and go down that route first.Thanks againFoolishgrad
Hi.I deposited my US Dollar cheque into my Barclays Bank Account.I decided to use the NEGOTIATION Term (Where they credit your account first, then try to take the money from the drawers account).However, I deposited the cheque 2 days ago now, and it does not even show on my account the credit, for example, in the UK when you deposit a cheque, on your account it will say - Balance £2,000. Available Balance - £500.00 (£2,000 is the cheque). But with this cheque I deposited it does not even say anything on my status.Why is this? Is this normal? And how long before Barclays credits my account under the Negotiation term of cheque payment.Thank You.