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Author: foolishgrad Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 33957  
Subject: Banking US Dollar Cheques in the UK Date: 18/03/2008 17:38
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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!

Thanks

Foolishgrad
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Author: gt94sss2 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22183 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 18:16
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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.

Regards
Sunil

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Author: DW99 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22184 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 18:50
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I receive dividend cheques for approx $55 every quarter from a US company that I hold shares in

Check 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

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Author: FreshFroot Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22185 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 19:06
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Hello foolishgrad

I 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=1347
I'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

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Author: newlyretired Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22187 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 22:11
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Author: foolishgrad | Date: 18/03/2008 17:38:00 | Number: 22186

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.


Hi foolishgrad

Citibank 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.

HTH

newlyretired

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Author: newlyretired Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22188 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 22:26
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Here is the Interest Rate and Charges page where it says that Citi don't charge for paying in USD cheques

http://www.citibank.co.uk/personal/banking/info/tariffandinterest/charges.htm?merchant=citi

newlyretired

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Author: supremetwo Big funky green star, 20000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22189 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 18/03/2008 23:34
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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.

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Author: B1ggles Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22195 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 19/03/2008 09:03
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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 ;-)

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Author: foolishgrad Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22225 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 21/03/2008 22:16
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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 again

Foolishgrad

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Author: ellzman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25595 of 33957
Subject: Re: Banking US Dollar Cheques in the UK Date: 23/01/2009 11:57
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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.

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