Transfer SGD to USD

[jdyins]

Hi all,

Asking this question is like beating a dead horse.. apologies if it's been addressed elsewhere and would appreciate if someone can post a response.

Problem: I've a Citigold account in the U.S. When withdrawing money abroad, I get a good conversion rate and few fees, so I would like to keep this US account 'stocked' with USD for traveling. At the momes, I'm working in Singapore and budget out money for traveling each month, and would like to find the best way to transfer this SGD to my USD bank account.

What's the best way to do this, with the least associated fees?

Thanks..

 

[Shiny Things]

Hi all,

Asking this question is like beating a dead horse.. apologies if it's been addressed elsewhere and would appreciate if someone can post a response.

Problem: I've a Citigold account in the U.S. When withdrawing money abroad, I get a good conversion rate and few fees, so I would like to keep this US account 'stocked' with USD for traveling. At the momes, I'm working in Singapore and budget out money for traveling each month, and would like to find the best way to transfer this SGD to my USD bank account.

What's the best way to do this, with the least associated fees?

Thanks..

The easiest way is going to be a wire transfer every few months. Get the Singaporean bank to convert the SGD to USD, then wire it across (you'll probably get a better rate if you let the Singaporean bank convert it, rather than letting Citi convert it).

That's not the cheapest way, though. Two options:

• I've heard good things about TransferWise, but I don't know if they operate in Singapore;
• If you don't mind a bit of hassle, you can set up a brokerage account with Interactive Brokers; transfer SGD into it (for free); convert it to USD within Interactive Brokers (at the interbank spot rate!); and then transfer the USD out to your Citibank US account (again, for free). Takes a few days, and IBKR charges a $10/mo inactivity fee if you don't do any trading, but it's the cheapest if you regularly use your brokerage account.

 

[fone]

As per Shiny Things, few things to note.

Some banks do charge incoming wire (aka TT) fee, like US$12 per incoming, like my BOA account. So doing frequent and small transfers might not be cost efficient.

I'm talking with the experience of having a Citibank (sg) business account. When doing large amounts like at least US$20,000, you can request for special FX rates rather than subject to their standard rates.

I'm not doing frequent or huge transfers, so I simply use the POSB online banking to do the wire transfer, which charges like the standard 1/8% outgoing wire transfer fee.

I'm not too sure how your account works, but I've friends who open SG Citibank USD account, for short term usage in the US (ie exchange students). They just withdraw at any Citibank ATM. Where it is just the FX to consider when you deposit into the USD account from sg and not wire transfer fees. Do check with local Citibank / Citigold, if you can do that without incurring (incoming and outgoing) wire transfer fees.

 

[jdyins]

Thanks, maybe I'll take a look into IB. The only thing that's a bit of a bummer is that 10$ inactivity fee. I heard that some people use Everbank as well.. do you know anything about that?

I'm not really transferring that much money. The most I'm really doing is like 500 SGD a month (not sure if that counts as a lot, I don't think it does when regarding currency trading).

 

[fone]

Thanks, maybe I'll take a look into IB. The only thing that's a bit of a bummer is that 10$ inactivity fee. I heard that some people use Everbank as well.. do you know anything about that?

I'm not really transferring that much money. The most I'm really doing is like 500 SGD a month (not sure if that counts as a lot, I don't think it does when regarding currency trading).

Lol, inactivity fee? You might want to consider downgrade the account or change to the SG account, with USD, that you can probably withdraw with no or minimal fee in the US. Otherwise, go donate to charity like $1 or $5 or $10 with debit / credit card, might even be cheaper to maintain your account. If not find something to buy for less than $1.

Please check if you bank has incoming transfer fee. I've a few different accounts there, and all charge that fee, like US$12. Even for outgoing wire transfer (for POSB), this is like 1/8% or S$10 minimum (at branch) or S$5 fee for S$5000 and below (for IB). For $500 per month, this will be like 1% fee or S$5 minimum. Plus S$20 cable/telex charge, which makes a monthly wire transfer very costly, at $25 out of $500 (5%). (Not sure if the cable/telex charge is in USD!). If you add in whatever incoming charge, it might be better to just pay the monthly fee, or find something useless to buy for less than that amount, or might be more cost efficient to close that account altogether.

 

[lcpteck]

Transferring money between Citibank accounts in US and Singapore is free, there is no admin charge (Citibank Global Transfer). However since it's in different currencies, Citibank will do the forex conversion.

 

[BBCWatcher]

Try Charles Schwab

Another option is Charles Schwab, the U.S.-based broker. Charles Schwab has a Singapore-based account at Citibank Singapore for receiving Singapore dollar funds from your Singapore bank account into your U.S. dollar-denominated Schwab One account. Fund transfer instructions (e.g. via local Singapore GIRO) are available here. You must be sending your own funds from your own account (in your name) to your own Schwab One account, also in your name. The currency conversion spread is typically less than 0.25% above the hypothetical frictionless mid-point between currencies, which is rather good really.

There are no inactivity fees and no transfer fees with a Schwab One account. In fact, you can get a Schwab Visa ATM/debit card to tap into your U.S. dollar funds. (Schwab even rebates ATM fees, so it's actually less expensive to transfer Singapore dollars into your Schwab account and use your Schwab ATM card anywhere outside Singapore than it is to use your Singapore-issued ATM card outside Singapore.) If you want to buy stocks, options, ETFs, etc. then Schwab has very reasonable trading fees, typically US$8.95 per trade.

Funds held in a Schwab One account are SIPC insured (to a limit) but not necessarily FDIC insured. (FDIC insurance is stronger.) Also, interest paid on the account is not particularly generous. Consequently I wouldn't recommend keeping too high a balance in the main account. However, I believe you have some options to move cash into the equivalent of fixed deposits if you want to earn a bit more interest. Note that if you are not a U.S. resident or U.S. citizen you'll fill out a W-8BEN form and be subject to 30% withholding on interest, dividends, etc.

If you want to support some U.S. (and even global) spending Schwab is a good vehicle. If you've got a particularly generous rebate on a Singapore-issued credit card that can overcome its higher currency conversion fees -- a promotional rebate offer -- great, use that card for that specific type of spending on that occasion. If you need to rent a car, use your credit card, but you don't actually have to pay for the rental car using a credit card. You can settle the bill at the end of the rental using your Schwab Visa debit card. (Just tell the agent processing your rental car return that you want to change the payment card. No problem.) In general your Schwab Visa debit card (and occasional ATM cash withdrawals) would be a good, lower cost way to spend money outside Singapore.

I recommend dollar cost averaging as you convert funds. That is, let's suppose you want to build up a balance of about US$10,000 in your Schwab One account over the next 6 months, and let's suppose today's exchange rate is 1.35. That's about S$13,500. Round it up to S$14,000, and divide by 6, and you get about S$2333. Transfer that amount every month for 6 months on a scheduled basis. (Most banks in Singapore let you set up a 6 month schedule of GIRO payments using online banking.) With that program you'll tend to buy more U.S. dollars when they're cheaper (in Singapore dollar terms) and fewer when they're more expensive, but you'll end up with about US$10,000 in your Schwab One account.