Going on an school exchange in US! Would like to ask for some tips

[kay_tea]

Hi all,

I will be going on an study exchange trip to the US for 3 months. Would like to ask for a few tips!

1. I need to book lodgings/ airplane tickets online (using VISA/ Mastercard). Which bank offers the best rate from SGD to USD? I have tried opening an account on Citibank but they only offer credit cards for online transactions.

2. I probably will be doing a lot of online shopping while I am there. Would it be better to convert money at money changers here and open an account at the US to deposit them in?

I don't mind opening another bank account (UOB?) but I cannot afford credit cards.

Thanks in advance!

 

[lalaisgongon]

Open a citi bank Access account singapore, This will allow you to draw money out from CITIBANK ATM in the USA with very min cost.

when you arrive in the US, open student account and they will issue you a debit card.

Change your money before you leave if you want to reduce forex risk and charges at local money changers

 

[platopus]

Yup, open a student account there and use ur US credit/debit card.

Bring a lump sum to deposit there (cash cheque, reach there then wire transfer etc)

Also good to have ur singapore atm card with cirrus etc. In desperate times still can withdraw money from atm, lose out on a few dollars.

Years back while travelling i lost all my money, but i packed my cards separately.. went to a macdonalds, used the free wifi to skype singapore hotline n enable my ocbc atm card, pure lifesaver.. to continue my travel and made my way home in the end


Nolstalgic sia

 

[hfts_james]

citibank have global instant fund transfer. instant.

 

[kay_tea]

Hi guys! Thanks for your quick replies!

@platopus: Woa that sounds pretty scary! I'll take note to put my cards in a separate place!

@lalaisgongon: Hi there! Thanks for the tip! I have a few more questions. I checked that Citibank Access account has a min deposit of USD$5,000. I guess I gotta change my money before I open the account?
Do I have to transfer money from Access account to the Student account and will there be a fee? Will there be a minimum amount I have to keep in my Access account if I transfer?

I guess I will be sticking to my trusty POSB card to book for my lodgings overseas.

 

[wahkao3]

if amount is big, i will use interactive broker to transfer SGD=> USD first, then do funds transfer from interactive broker back.

 

[lalaisgongon]

If iirc, you need to maintain 5000 USD equivalent, so i think if you have 8000 sgd it would be find two.
Citi allow you to put usd first or sgd and sgd will be convert on the spot when you withdrawal.

Transfer from Access to student means, go citibank atm, draw out cash ( no fees) walk in to citibank, deposit cash ( also no fees)

Technically, you can do the citi global transfer on line if you have i banking for both accounts, but the method i mention above is faster!

Eh the min, i think is the same. Walk in to citibank and ask, they should be in a better positon to answer you.

Note if you use your POSB debit card for overseas trans to book your lodging, there is a 2 percent fee + their horrid exchange rate.

https://www.dbs.com.sg/iwov-resources/docs/deposits/form_debit_agreement_2013.pdf

its under 5.7

 

[wahkao3]

If iirc, you need to maintain 5000 USD equivalent, so i think if you have 8000 sgd it would be find two.
Citi allow you to put usd first or sgd and sgd will be convert on the spot when you withdrawal.

Transfer from Access to student means, go citibank atm, draw out cash ( no fees) walk in to citibank, deposit cash ( also no fees)

Technically, you can do the citi global transfer on line if you have i banking for both accounts, but the method i mention above is faster!

Eh the min, i think is the same. Walk in to citibank and ask, they should be in a better positon to answer you.

Note if you use your POSB debit card for overseas trans to book your lodging, there is a 2 percent fee + their horrid exchange rate.

https://www.dbs.com.sg/iwov-resources/docs/deposits/form_debit_agreement_2013.pdf

its under 5.7

wadz the xchange rate????

 

[lalaisgongon]

Hmm i am not sure, but when i see my CC bill. it doesnt seem competitive. This is even if you exclude their 2% fee for debit card

As for credit card. Visa/MC charges 1 percent and dbs bank charges another 1.5.
For amex, its 1 percent and 2 on dbs bank side.

Hmm, i see your option as IB as viable if TS wants to open an account and exchange.

Not sure if this might be the rate. But if you see
http://www.visaeurope.com/making-payments/exchange-rates

1.3586993443 - current rate of 1.35488 =0.0038 or 0.38%

Hmm, maybe not that bad. but depending on your spread. and note that this from USD Directly to SGD.

However, say if you buy something in AUD, it goes thru 2 steps. AUD to USD then USD to SGD

Means, the spread prob is 0.38 * 2 = closer to 0.78%

 

[Shiny Things]

1. I need to book lodgings/ airplane tickets online (using VISA/ Mastercard). Which bank offers the best rate from SGD to USD? I have tried opening an account on Citibank but they only offer credit cards for online transactions.

Not sure here, but I never had a problem with DBS.

2. I probably will be doing a lot of online shopping while I am there. Would it be better to convert money at money changers here and open an account at the US to deposit them in?

Don't do this, because you don't want to be muling thousands of dollars around in case you get robbed (and if you rock up at a bank in the US with thousands of dollars in cash saying "can I please open an account", the first thought going through their mind will be "money-launderer"). Also, the money-changers' rates will be slightly worse than wiring money from your bank in Singapore.

If you're only going to be over here for three months, you're probably best to just do it all with Singaporean debit cards. Everything's going to be marked up about three percent because of the FX fees, but that's not the worst thing in the world.

If you do want to open an account at a US bank, you'll need proof of your address; when I opened my account at Chase, I gave them proof of my Singaporean address and they were fine with it. (All they needed was a passport; a Starhub and a Singtel Mobile bill to prove my address; and a hundred bucks to fund the account.) You want to use one of the larger banks (Chase or Wells Fargo or Citi are fine; not BofA, they suck), because they'll be more comfortable with overseas clients.

So, my recommendations:
1) Don't bother - just use your Singaporean account and debit cards;
2) If you really want a US bank account, go to Chase with your passport and two things to prove your home address, whether that's your US address or your Singaporean address.

 

[lalaisgongon]

Not sure here, but I never had a problem with DBS.



Don't do this, because you don't want to be muling thousands of dollars around in case you get robbed (and if you rock up at a bank in the US with thousands of dollars in cash saying "can I please open an account", the first thought going through their mind will be "money-launderer"). Also, the money-changers' rates will be slightly worse than wiring money from your bank in Singapore.
This might or might not be true. My understanding is that there is a cable charge of at least 20 dollars if you use TT

If you're only going to be over here for three months, you're probably best to just do it all with Singaporean debit cards. Everything's going to be marked up about three percent because of the FX fees, but that's not the worst thing in the world.

If you do want to open an account at a US bank, you'll need proof of your address; when I opened my account at Chase, I gave them proof of my Singaporean address and they were fine with it. (All they needed was a passport; a Starhub and a Singtel Mobile bill to prove my address; and a hundred bucks to fund the account.) You want to use one of the larger banks (Chase or Wells Fargo or Citi are fine; not BofA, they suck), because they'll be more comfortable with overseas clients.
I think TS is a student that is going there for a few months, hence he will have a local address and a student ID. Look out for student acc, In my experience, there was no issue as long as you are student and you have proof of local address (aka rental agreement or smth)
So, my recommendations:
1) Don't bother - just use your Singaporean account and debit cards;
Agreed, if you are ok with the 3% charges
2) If you really want a US bank account, go to Chase with your passport and two things to prove your home address, whether that's your US address or your Singaporean address.

TS wont need it as he will have local address!

 

[zoossh]

Hi guys! Thanks for your quick replies!

@platopus: Woa that sounds pretty scary! I'll take note to put my cards in a separate place!

@lalaisgongon: Hi there! Thanks for the tip! I have a few more questions. I checked that Citibank Access account has a min deposit of USD$5,000. I guess I gotta change my money before I open the account?
Do I have to transfer money from Access account to the Student account and will there be a fee? Will there be a minimum amount I have to keep in my Access account if I transfer?

I guess I will be sticking to my trusty POSB card to book for my lodgings overseas.

1. have u checked if what banks u have in your area? some places dun have citibank.

2. custom says if bring more than 10k USD in cash or cheque or various formats, have to declare.

3. i'm using uob visa signature for 5% overseas offline rebate and ocbc frank for 6% online rebate. also suggest that u bring an extra card and hide it somewhere else in case your main cards are lost. dun forget to active overseas magnetic stripe usage

 

[kay_tea]

My estimated expenditure there will be USD$3k. So I can technically bring this amount and cash in without suspicion of money-laundering I suppose? If TT is going to take an extra $20, I guess I could open a student account directly for Citibank over there.

@zoossh: Thanks for the heads-up! Didn't occur to me about the activation of magnetic stripe for overseas. And you are right, the place where I am staying at for 3 months doesn't have any Citibank branches at all (have ATMs though). However, I'm dropping by San Francisco before that, leaving from LA and luckily they have a lot of branches there

The exchange rate for POSB is better than OCBC. And online rebates only work for OCBC Frank credit cards, which I sadly am not able to register for one due to me not having a job

@Shiny Things: I'll take a look at Chase! There's one very near where I stay at.

@lalaisgongon: Correct! I will have a local address. And I am trying to bypass the (rumoured terrible) POSB exchange rate but I can't seem to find any other way. Does getting someone to pay with credit card (with online rebates) be much better? I have tried checking for Citibank's exchange rate (but can't seem to find) and only heard that it is good.

Edit: Tried Googling for Student Account Citibank US and results showed that Citibank SG has a card just for Tertiary students which I am applicable for. This better be new... No online rebates though.

https://
www . citibank . com . sg
/global_docs/pdf/Citibank_Clear_Visa_Cardmembers_Agreement.pdf

I understand from the agreement that it has an administrative fee of 0.8% for VISA, but I do not understand the 2.5% fee Does this mean that this is better?

 

[lalaisgongon]

Hmm which exchange rate you talking about? the one that u get when you charge to your card? or the one you get when you walk into the bank and ask to change money?

as for the card agreement. 2.5 percent is the one you should be concern about,that the fee they charge when you use the Citi visa card swipe in the US.

the 0.8% is when you are overseas and buy something, you have the option of paying in singapore dollars on the spot, like the credit card chip ( the receipt that you sign) will have USD or SGD, asking you to select one. If you circle SGD, then there will be another 0.8% surcharge.

Note that most of the time, you just convert the SGD to USD before you pay and you will realize the rate is terrible too, or rather, it will be the same as you paying in usd and getting charge the 2.5%.

 

[kay_tea]

@lalaisgongon: Sorry, I wasn't clear. I was talking abt the exchange rate when I use my card to pay for things online. I have always assumed it's Selling TT/OD that I should be looking at.

Hmm sorry I am still confused, is it that:

1. If I were to do any online transactions that requires USD with the Citibank Clear (VISA) account, they will charge 2.5% more.

2. When I am in the US and decide to pay with a Citibank Clear card, they will charge 2.5% + 0.8% more if I decide to pay using SGD.

 

[lalaisgongon]

@lalaisgongon: Sorry, I wasn't clear. I was talking abt the exchange rate when I use my card to pay for things online. I have always assumed it's Selling TT/OD that I should be looking at.

Hmm sorry I am still confused, is it that:

1. If I were to do any online transactions that requires USD with the Citibank Clear (VISA) account, they will charge 2.5% more.
Correct.

2. When I am in the US and decide to pay with a Citibank Clear card, they will charge 2.5% + 0.8% more if I decide to pay using SGD.Only the 0.8%. But they use a exchange rate that is worst that the current market one

Its called dynamic currecy conversion

 

[kay_tea]

Another question...
Do all banks use the same exchange rate when it comes to online purchases? All the banks have different Selling TT/OD rates, does it affect too?