£/$ CNBC Analysis

**getvisible** · 27-11-03

Just been watching CNBC and the analysis from Goldman Sachs is that they expect the rate to go from the 1.71 it is now to 1.78 in the near future i.e. you're gonna get 4% less £ for your $.

Just been chasing up my bank to open up a $ account to reduce the risk of future moves - may be a good time to look at it too if you get paid $ and you already don't have one.

Could people that have $ accounts let us know what they think of them?

Cheers,

Lee

**Matthew Wood** · 27-11-03

Don't have one yet Lee, but its on the cards.

Rang Lloyds just now,

Their fees are £60 a year, and fees of approx £8 - £80 for each deposit or bundle of cheques. But you can choose when to withdraw the money of course.

The rate today was 1.73!

Anyone else have any info or advice on this?
Cheers.
Matt.

**getvisible** · 27-11-03

doh - yeh - forgot to say that was the "inter-bank" rate. The retail rate we get is always that bit higher :-(

Are they any sites like money supermarket that compare the charges etc?

Just off to have a look

**getvisible** · 27-11-03

Product Request
Current account with
an investment balance of $1000

Name of Account and Rate
Provider: HSBC BANK PLC
Name of Account: US Dollar Current Account
Credit Interest Rate (gross): 0%
AER: 0%
Interest Paid: n/a

Tiers Available

Balance AER Gross
$0 0% 0%

Account Details

Access By: Branch Post Post Office Telephone Internet Digital TV WAP

Availability Information: This account is available in a range of currencies, including Australian dollars, Canadian dollars, Danish krone, Euro, Hong Kong dollars, Japanese yen, Norwegian krone, Swedish krona and Swiss francs. This issue is designed for individuals who make and receive payments in US dollars. To open an account you must be at least 18 years of age.
Minimum Income Required: No minimum.
Free Banking If In Credit: No
Service Charge: £35 or currency equivalent for each half year or cheque charge (whichever is greater).
Packaged Account: No
Investment Conditions: No minimum balance required. HSBC accepts cash, cheques and other items that are payable to you for payment into your account. HSBC will only accept instructions in relation to your account if you give them at, or send them to, one of their branches.
Withdrawal Access: No notice is required to make withdrawals or transfers. You should only write cheques in the currency of your account.
Notes: Statements are issued on a quarterly basis. Optional automatic transfers from current to deposit accounts held in US dollars are available.
No credit interest is paid.

Facilities
Multi Function Card: No
Cash Card: No
Debit System: n/a
ATM: n/a
Cheque Guarantee Card: Not available
Cheque Book: Available on request.
Standing Orders / Direct Debits: No

Borrowing
Overdraft Facility: No
Interest Free Overdraft Limit: £0
Unauthorised Overdraft Interest (pm/EAR): 7% over the US dollar base rate.
Unauthorised Overdraft Fees: See 'Other Information'.
Other Information: This account must not go overdrawn unless a limit is agreed. Overdrafts are available upon request. Unauthorised and excess overdrafts will be charged at 7% over the currency base rate. Any debit interest or charges due are deducted half yearly in June and December.

CHARGES:
For cheques drawn on your account, the charges are as follows:
£35 or currency equivalent minimum charge for each half year, or cheque charge, whichever is greater.
£1.20 or currency equivalent per cheque for Canadian dollars, Japanese yen, Swiss francs and US dollars.
£12 or currency equivalent per cheque for all other currencies.
A commission charge of 1% will be deducted from your account for foreign currency banknotes paid into or withdrawn from your USD Current Account.
Cheques paid into this account will be charged at £4.00 per item.

**getvisible** · 27-11-03

Product Request
Current account with
an investment balance of $1000

Name of Account and Rate
Provider: CITIBANK
Name of Account: US Dollar Current Account
Credit Interest Rate (gross): 0%
AER: 0%
Interest Paid: n/a

Tiers Available

Balance AER Gross
$1 0% 0%

Account Details

Access By: Branch Post Post Office Telephone Internet Digital TV WAP

Availability Information: To be eligible for a Citibank US Dollar Current Account you must be a minimum age of 18 years and you must be able to credit your monthly salary, or make an initial deposit of £2,000 or the currency equivalent into your account. The account may be held solely or jointly and must be for personal use only. Citibank customers can apply for this account online.
Minimum Income Required: No minimum.
Free Banking If In Credit: Yes
Service Charge: A monthly service charge of $20 on each US$ Current Account will be levied where the credit balance, across your UK Citibank relationship, falls below the currency equivalent of £2,000.
Packaged Account: No
Investment Conditions: Deposits can be made at UK Citibank Card Banking Centers if you hold a US$ Account. Any deposits or withdrawals in currencies other than the currency of the account will be converted at the Bank's prevailing Foreign Exchange Rate and may be subject to a commission and a handling fee. Deposits should not be made at any Citibank branches in the USA nor to the New York Park Avenue branch. To deposit money to your account use the slip from your paying in book and post this to Citibank in London.

Withdrawal Access: You may withdraw up to the currency equivalent of £10,000 cash from any branch of the Bank in the UK without notice if within your available balance. Larger withdrawals will require two days' notice. Citibank offer two main methods of transferring money abroad:
- Citibank Global Transfer - You can transfer up to £10,000 in Sterling or in the currency of the recipient account every day (please note that some countries don't allow you to transfer this amount). However, there is no daily limit to the amount you can transfer between your same currency Citibank Accounts linked to a Citibank Card. Further details can be seen below in "Benefits and General Notes", or
- SWIFT transfer - a telegraphic transfer service that can be arranged using CitiPhone or at one of the Citibank branches, and allows you to send money to bank accounts almost anywhere in the world.

Notes: This account is designed for those who travel regularly to the USA, have personal or financial interest there, or make regular transactions in US Dollars.

Key features and benefits:
- No need to worry about exchange rate fluctuations when you make withdrawals.
- Avoid the commission charges, transactional fees and delays that can apply when you change money between currencies.
- You can use Citibank Global Transfer to transfer money between accounts held at other Citibank branches in the US, selected European countries as well as Mexico, and selected India Rupee accounts. The international transfer service is free. The Citibank Global Transfer is also available through Internet Banking and Citibank Card Banking Centers. Citibank Global Transfer also allows you to instantly exchange currency between your accounts at competitive rates. Further details can be seen above in "Withdrawal Access".
- Citibank can also offer you a US Dollar Savings Account.
- Located in UK Citibank branches, Citibank Card Banking Centers are cash machines that give you access to your account, 24 hours a day, 365 days a year. They allow you to use your Citibank Card and PIN to carry out a wide range of banking transactions. You can do the following free of charge, from any Citibank Card Banking Center in over 41 countries around the world:
Withdraw cash in local currencies;
Transfer money to Citibank accounts in Europe, the US, Mexico and India;
Obtain account balances;
Deposit sterling cheques or notes at UK based Citibank Card Banking Centers into your Citibank UK accounts;
You can also make deposits in certain foreign currencies into accounts of the same currency; and
You can change your Citibank Card PIN (UK only).
(See "ATM and Cash Withdrawal Notes" below for more information).
- Citibank's Managed Account Transfer process, take's care of transferring all your standing orders and Direct Debits, making your transition to Citibank as smooth and hassle-free as possible. Citibank's dedicated team will keep you informed throughout the process, which usually takes around 4 weeks.

Facilities
Multi Function Card: A Citibank Card is available.
Cash Card: Yes
Debit System: You can use your Citibank Card to make purchases at any retail outlet in the UK or abroad displaying the VISA or Delta sign. Transactions will be debited from your nominated Citibank Sterling, Euro or Dollar Current Account normally within five days from the date of purchase.

ATM: In the UK, you can use over 44,000 cash machines displaying the LINK/VISA sign and over 810,000 cash machines around the world displaying the VISA sign(s) to withdraw funds from your primary current account. Cash withdrawals limits may vary subject to local cash machines. In addition you can withdraw up to £500 daily from any Citibank Card Banking Center - Citibank cash machines that enable you to access any of your accounts which are linked to your card.
Cheque Guarantee Card: Yes
Cheque Book: Yes, US$ cheques are cleared through a Citibank branch in New York within 3 working days and are accepted throughout the US.
Standing Orders / Direct Debits: There are no automated transactions available from the account.

Borrowing
Overdraft Facility: No
Interest Free Overdraft Limit: £0
Unauthorised Overdraft Interest (pm/EAR): ---
Unauthorised Overdraft Fees: ---
Other Information: An overdraft facility is available on request, subject to status.

CHARGES:
Transactions paid on your behalf - US$40.
Other transactions for which payment is refused - US$40.
Copy statement - US$10.
Funds Transfers - should any currency conversions be required to complete the transfer, these will be at Citibank’s prevailing rate of the day.

**bazza99** · 27-11-03

Hmm...won't this depend on what happens with UK interest rates though. If rates now move upwards fairly swiftly, then the pound should weaken against the dollar (as happened briefly after the interest rate rise in October).

Having said that, I got 1.72 (I think) from CJ the month before last, even though the exchange rate hadn't even got anywhere near that point at that stage.

**getvisible** · 27-11-03

NATWEST Phone 0800 200 400 for details - nice of them to use the internet to its full!

BANK OF SCOTLAND call 0845 300 0268

is that citi bank one an account we can earn commission from?

just asking as I'm not big in the financial area (Luke keep your comments to yourself!)

the idea is that you can put it into a dollar account and you can choose when to convert it into £ i.e. you can keep the cash in and then convert it when the rate goes in your favour. It could end up "saving" you a few grand.

**Mogga** · 07-01-04

Bank of scotland $ account (business one) is pants - I have NO idea what the charges are... they charges me about £5 on some small cheques each (!!!) which horrified me as thats what they charge me to put them into UK£ account.
There is no mention of charges on their site and when I arranged the account I explained why and their call centre staff didn't say a word about charges....
I will when I can be bothered closing it put the money in either a proper $ account or into probably a bucket with a hole into...