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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4543
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I work abroad but only for 6 months of the year so I am still

Resolved Question:

I work abroad but only for 6 months of the year so I am still a UK resident. It is a new job. I am paid in US dollars into a foreign currency account in a UK bank. Should I keep this foreign currency account or have my salary paid directly into my UK Sterling current account. I understand having a US dollar account means I can transfer into my current account whenever I feel the exchange rate is right but the bank charges extortionate exchange rates. It seems to me that having either account will result in me being ripped off by the bank. Are there any other ways I can transfer between accounts at the same UK bank? The foreign currency account does not offer online banking either.
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,
Hello and welcome. Thank you for providing an opportunity to assist you.
From what I understand from your question, the best option for you would be take the money directly into UK Pound dominated account.
You may be taking it in USD dominated account for want of favorable interest rates but the bank charges that you will pay will negatively offset such gains, if at all any.
There is no other option that I can think of as well because, the first credit originates from outside.
However, in my opinion, if you take money directly in GBP dominated account, you should take a relatively smaller hit.
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question,
Warm Regards
Customer: replied 2 years ago.

Thanks. There is no interest rate in the foreign currency account. It is the exchange rate that bothers me. If I keep the dollar account, I can change the money into pounds when I see the rate is good. If I pay directly into a sterling account on the 28th of each month, then I have to accept the exchange rate on that day. For this reason, would i be better keeping it in the dollar account? I have been transferring every month or bi monthly so far.

Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,
Hello and welcome again. Thank you for your reply.
I do understand your logic. If you are accepting direct remittance, you are accepting that day's exchange rate.
However, you can certainly keep the dollar amount take the transfer when the rate is good. But if your bank charges addional charges (once for remitting to four Dollar account and AGAIN when you convert it to pounds when the rate is good), it do not find this too much profitable.
BUT if you are paying charge only ONCE, I.e. when you convert them to Pounds when you find the exchange rate good, does CERTAINLY makes sense.
For this reason, it would be better keeping a Dollar account.
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question,
Warm Regards
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