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ladelfina · 10-08-2007, 05:55 AM

5 months' expenses having to come out in dribs and drabs will have a certain cost. At, say $5 per transaction (what Fleet was charging me for an overseas ATM wd) to get, say, $300; that's almost 2% right off the bat on top of whatever exch. rate you are getting. You'll also run into daily limits so you'll have to plan the logistics of paying for big-ticket things like rent. In my experience the bank did not give me the best exchange rate, either. Since we are here long term we do wire transfers to a foreign acc't.

There is no way to "avoid" exchange expenses. You can only try to mitigate them.
Yes, foreign banks do offer USD-denominated accounts. I know of ex-pats here in Italy who hold them, and keep an eye on the exch. rate before asking for a conversion/withdrawal (for what good it has done!).

HSBC is one of the big international banks that will do this.
Personal Banking

though here someone complains of fees:
Slightly OT: Opening a bank account in Singapore as an American - FlyerTalk Forums

another is Deutsche Bank
Welcome to Deutsche Bank!

Also, Citibank:
Citibank Taiwan

A site that I learned a lot from is here:
OANDA, The Currency Site: Foreign Exchange Services and Trading

Make sure to ask any bank you are interested in what is their exchange rate "spread" (i.e., what's the amount they charge for the exchange over and above the interbank rate). The interbank rate already guarantees something is "lost" in the process, and you just want to see what more they will skim off the top. Many regular banks are as high as 4%, CCs 3%, etc.

If you are really budgeting $9k.. you can just use your CCs and ATMs and figure you are going to be paying $400-$550 over that period (4%-6% of $9k) just as a "cost of doing business" or convenience factor. Or you can figure that the hassle of opening and closing a foreign account MAY save you a couple percent (that is, a couple hundred bucks...).

Sorry there's no "good" solution, but make sure to check closely with your current bank to see if they are offering reasonable foreign exchange and foreign ATM fees or if they are higher than the norm before deciding. Maybe you can negotiate with them in order that they keep your business?

10-08-2007, 05:55 AM	#3
ladelfina Thinks s/he gets paid by the post Join Date: Oct 2005 Posts: 2,713	5 months' expenses having to come out in dribs and drabs will have a certain cost. At, say $5 per transaction (what Fleet was charging me for an overseas ATM wd) to get, say, $300; that's almost 2% right off the bat on top of whatever exch. rate you are getting. You'll also run into daily limits so you'll have to plan the logistics of paying for big-ticket things like rent. In my experience the bank did not give me the best exchange rate, either. Since we are here long term we do wire transfers to a foreign acc't. There is no way to "avoid" exchange expenses. You can only try to mitigate them. Yes, foreign banks do offer USD-denominated accounts. I know of ex-pats here in Italy who hold them, and keep an eye on the exch. rate before asking for a conversion/withdrawal (for what good it has done!). HSBC is one of the big international banks that will do this. Personal Banking though here someone complains of fees: Slightly OT: Opening a bank account in Singapore as an American - FlyerTalk Forums another is Deutsche Bank Welcome to Deutsche Bank! Also, Citibank: Citibank Taiwan A site that I learned a lot from is here: OANDA, The Currency Site: Foreign Exchange Services and Trading Make sure to ask any bank you are interested in what is their exchange rate "spread" (i.e., what's the amount they charge for the exchange over and above the interbank rate). The interbank rate already guarantees something is "lost" in the process, and you just want to see what more they will skim off the top. Many regular banks are as high as 4%, CCs 3%, etc. If you are really budgeting $9k.. you can just use your CCs and ATMs and figure you are going to be paying $400-$550 over that period (4%-6% of $9k) just as a "cost of doing business" or convenience factor. Or you can figure that the hassle of opening and closing a foreign account MAY save you a couple percent (that is, a couple hundred bucks...). Sorry there's no "good" solution, but make sure to check closely with your current bank to see if they are offering reasonable foreign exchange and foreign ATM fees or if they are higher than the norm before deciding. Maybe you can negotiate with them in order that they keep your business?