Dollar Cheque accounts
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Joined: Dec 1999
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I'm getting more and more dollar cheques for various things, which 1st Direct
charge me £5 to cash. Now with each cheque only being $30-$40, this isn't good!
Can I open a free to run $ account in
the UK?
1st Direct say I can open a $ account with them, but they still charge the same amount to pay in! Is there a way for me to open a postal $ account in the US?
cheers,
Greg
charge me £5 to cash. Now with each cheque only being $30-$40, this isn't good!
Can I open a free to run $ account in
the UK?
1st Direct say I can open a $ account with them, but they still charge the same amount to pay in! Is there a way for me to open a postal $ account in the US?
cheers,
Greg
Scooby Regular
Joined: Aug 2000
Posts: 8,897
Likes: 4
From: Newmarket Suffolk
Greg
Just one thing to watch out for. ALL dollar cheques clear on New York irrespective of where they are drawn on. If you get a cheque drawn in the USA on a US domiciled bank in a big city you are normally ok because the banks will apply a nominal value date to it as they know how long these cheques will take to clear. However, if the cheque is drawn on a bank in Hicktown then it will be sent for collection instead and this can take months for you to get credit.
Frequently, if the cheques are for $50 ish or less the US banks will refuse to negotiate them at all.
By the same token, if you open a dollar account here in the UK with a cheque book and the cheques show a bank address of the UK not New York, and you then send small value cheques to anyone in the USA, the banks there will refuse to negotiate them. They cannot be bothered to send them back to the issuing bank in the UK to get credit.
There aren't always hard and fast rules on this, but it is something to watch out for as it can seriously screw up your cashflow.
Paypal is good for small dollar transactions.
Just one thing to watch out for. ALL dollar cheques clear on New York irrespective of where they are drawn on. If you get a cheque drawn in the USA on a US domiciled bank in a big city you are normally ok because the banks will apply a nominal value date to it as they know how long these cheques will take to clear. However, if the cheque is drawn on a bank in Hicktown then it will be sent for collection instead and this can take months for you to get credit.
Frequently, if the cheques are for $50 ish or less the US banks will refuse to negotiate them at all.
By the same token, if you open a dollar account here in the UK with a cheque book and the cheques show a bank address of the UK not New York, and you then send small value cheques to anyone in the USA, the banks there will refuse to negotiate them. They cannot be bothered to send them back to the issuing bank in the UK to get credit.
There aren't always hard and fast rules on this, but it is something to watch out for as it can seriously screw up your cashflow.
Paypal is good for small dollar transactions.
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