Cheque vs. Wire Transfer for Foreign Currency

[lcpteck]

Hi,

Hope if anybody knows about this.

If I was to receive a USD cheque from a US bank and I bank it into an account that can handle USD (instead of converting to SGD), what kind of charges would I have to incur? Does it differ from bank to bank?

How about wire transfer? Would I incur any charges? The account would be a USD account.

I'm looking to open a USD Account that can handle the following:
1) Earn interest
2) Withdraw USD cash

Is there such bank accounts that can do that?

 

[dexboi]

Citibank will be your best bet. They are U.S based bank. Go and ask them.

Different bank operates differently and charges vary across the board.

 

[stiwipl]

Citibank will be your best bet. They are U.S based bank. Go and ask them.

Different bank operates differently and charges vary across the board.

This is an option, however despite not charging any fees for FCY incoming bank transfer, there is 1.5% FCY cash withdrawal fee.

I would prefer DBS Multi Currency Account (MCA), pay S$10 incoming bank transfer fee in FCY but withdraw FCY cash at branch free of charge.

 

[dreant]

The biggest disadvantage of depositing cheques drawn from a foreign bank, is the amount of time it takes to clear. It usually takes about 4-6 weeks before the funds become available. Funds for wire transfers can post on the same day, or usually no more than 2 days later.

DBS: Cheques for overseas clearing - service charges
DBS charges 1/8% (min $10) + postage charges + agent bank fees (if any). They would take between $30-40 for each US cheque I deposited with them.

Citibank has no charge when you deposit foreign currency cheques drawn from overseas banks. (See Citibank: Cheque charges)

DBS charges $10 handling fee for incoming telegraphic transfers; Citibank has no charge.

Most banks charge a fee to withdraw USD notes; the only exception seems to be DBS's MCA account.

Your best option would perhaps be to maintain 2 USD accounts. A CitiAccess USD checking account with Citibank (deposit cheques, receive incoming TTs, and to park your USD there as it's interest bearing); and a DBS MCA account. When you need to withdraw USD notes, write a cheque from your CitiAccess account and deposit it into your DBS account, then withdraw over the counter when it has cleared. (There is no charge for clearing USD cheques drawn from local banks)

 

[chopra]

The biggest disadvantage of depositing cheques drawn from a foreign bank, is the amount of time it takes to clear. It usually takes about 4-6 weeks before the funds become available. Funds for wire transfers can post on the same day, or usually no more than 2 days later.

DBS: Cheques for overseas clearing - service charges
DBS charges 1/8% (min $10) + postage charges + agent bank fees (if any). They would take between $30-40 for each US cheque I deposited with them.

Citibank has no charge when you deposit foreign currency cheques drawn from overseas banks. (See Citibank: Cheque charges)

DBS charges $10 handling fee for incoming telegraphic transfers; Citibank has no charge.

Most banks charge a fee to withdraw USD notes; the only exception seems to be DBS's MCA account.

Your best option would perhaps be to maintain 2 USD accounts. A CitiAccess USD checking account with Citibank (deposit cheques, receive incoming TTs, and to park your USD there as it's interest bearing); and a DBS MCA account. When you need to withdraw USD notes, write a cheque from your CitiAccess account and deposit it into your DBS account, then withdraw over the counter when it has cleared. (There is no charge for clearing USD cheques drawn from local banks)

sounds like a good idea.

TS, I have the same intent too. money from overseas brokerage..option sex press.

 

[lcpteck]

The biggest disadvantage of depositing cheques drawn from a foreign bank, is the amount of time it takes to clear. It usually takes about 4-6 weeks before the funds become available. Funds for wire transfers can post on the same day, or usually no more than 2 days later.

DBS: Cheques for overseas clearing - service charges
DBS charges 1/8% (min $10) + postage charges + agent bank fees (if any). They would take between $30-40 for each US cheque I deposited with them.

Citibank has no charge when you deposit foreign currency cheques drawn from overseas banks. (See Citibank: Cheque charges)

DBS charges $10 handling fee for incoming telegraphic transfers; Citibank has no charge.

Most banks charge a fee to withdraw USD notes; the only exception seems to be DBS's MCA account.

Your best option would perhaps be to maintain 2 USD accounts. A CitiAccess USD checking account with Citibank (deposit cheques, receive incoming TTs, and to park your USD there as it's interest bearing); and a DBS MCA account. When you need to withdraw USD notes, write a cheque from your CitiAccess account and deposit it into your DBS account, then withdraw over the counter when it has cleared. (There is no charge for clearing USD cheques drawn from local banks)

Thanks for the info, let me take time to read and absorb a bit heh...

 

[dreant]

Thanks for the info, let me take time to read and absorb a bit heh...

The downside is having to maintain the minimum balance in the two accounts (SGD5k for Citi, and SGD3k for DBS).

What I really like about Citi is their Online Premium Account, which allows dual currency placements via internet banking as low as USD5k. If you're not familiar with dual currency investments, I would highly encourage you to avoid it. (I use it to effectively perform fx conversions at spot).

 

[IronMac]

The biggest disadvantage of depositing cheques drawn from a foreign bank, is the amount of time it takes to clear. It usually takes about 4-6 weeks before the funds become available. Funds for wire transfers can post on the same day, or usually no more than 2 days later.

DBS: Cheques for overseas clearing - service charges
DBS charges 1/8% (min $10) + postage charges + agent bank fees (if any). They would take between $30-40 for each US cheque I deposited with them.

Citibank has no charge when you deposit foreign currency cheques drawn from overseas banks. (See Citibank: Cheque charges)

DBS charges $10 handling fee for incoming telegraphic transfers; Citibank has no charge.

Most banks charge a fee to withdraw USD notes; the only exception seems to be DBS's MCA account.

Your best option would perhaps be to maintain 2 USD accounts. A CitiAccess USD checking account with Citibank (deposit cheques, receive incoming TTs, and to park your USD there as it's interest bearing); and a DBS MCA account. When you need to withdraw USD notes, write a cheque from your CitiAccess account and deposit it into your DBS account, then withdraw over the counter when it has cleared. (There is no charge for clearing USD cheques drawn from local banks)

Thanks dreant! Very concise! If I had known more about Citi or saw your post earlier, I may not have chosen the DBS MCA.

 

[itsme220]

Thanks guys for your feedback. I suppose these are for personal account. If I have a small business and receiving funds from overseas in US$ , any bank recommendation?

Thanks

 

[desmodeus]

Hi

I received AUD cheques for dividends. Any advice.

 

[dreant]

Hi

I received AUD cheques for dividends. Any advice.

One good advice I've been told, is to avoid resurrecting 4+ year old threads...