Wire transfer US bank to UK bank - is it that easy??

Hi all,

My parents borrowed quite a large amount of money from me out of my US bank account awhile ago, and now that their place has sold (contract signed today - hurray!)  they are paying me back. We decided with the current interest rates to move it here. They want to transfer the money to me from their bank in the US to mine here in the UK. My dad's bank in the US is saying this is a very simple matter of a bank to bank wire transfer. They have told him to advise me to get the necessary information for this international wire transfer from my bank, and then it will be transferred at the current exchange rate.

Now, I trust my dad, but I don't trust his podunk bank. Surely it can't really be that simple?? Why would I choose to use xetrade.com or any of the other services over a simple bank to bank transfer if it really is this easy? Are the fees larger this way?

Are the fees larger this way?

Hi,

Don't know.  Just to see, I set up a wire transfer from the US to the UK on XE, and the transfer fee was going to be $20.  What is the podunk bank going to charge, and is there a charge to receive a wire transfer on your UK bank account?

Carl

Yep, it should be that easy but you will probably pay fees at both ends of the transfer. Check with the banks for how much. From my experience in the US, if your parents are good customers (meaning have a good chunk o' change there) at the bank they are transferring from, the bank may waive the fee. The fee from my bank here, Barclays, was a certain percentage, not too painful though.

Hi,

Don't know.  Just to see, I set up a wire transfer from the US to the UK on XE, and the transfer fee was going to be $20.  What is the podunk bank going to charge, and is there a charge to receive a wire transfer on your UK bank account?

Carl

It's not quite clear what the charges are on the podunk end - and I can't seem to find information online about charges from HBOS. I will ask my dad to look into XE as well. Another thread indicates that exchange rates with XE might be more favourable than inter-bank exchange rates.

pkmac, that's helpful thanks!

I've done all my transfers through PayPal (I have both a US an a UK account).  The fee to send is included in the currency conversion (I paid $1.74 per £1 when the raw rate was $1.68).  I then paid £3 to receive the money.  This might be a cheaper option, but it does take time (roughly 2 weeks).

We transfer money to the UK monthly from our US bank account. A simple breeze once you get all the numbers right, and assuing the bank person is reasonably intelligent it isn't a problem. We bank with Washington Mutual here simply because they have free international wire transfers. We pay a fee on the HSBC side though, around 30 pounds. but we send large amounts usually so it is worth it for us.

We transfer large sums UK ways as well.  My bank charges $20 and then First Direct charges £8 on their end.

You'll get slightly better rates through something like exTrade. I'm looking at them right now versus my bank to move funds from the dollars to pounds. The bank was quoting a rate that was slightly more expensive ($.04 more per pound), which doesn't sound like a lot, but it does add up.

I do online wire transfers from my US to my UK banks all the time. Yes  it is that easy.

If you are worried about fees, I suggest you transfer a lot of money at once, if the bank charges a fee per transfer.

Silly girl - you should have asked me when we were together on Saturday!  I have all the details...but I'm not very happy with xe trade right now, so I'd probably go with the wire unless the rate differs significantly.

Silly girl - you should have asked me when we were together on Saturday!  I have all the details...but I'm not very happy with xe trade right now, so I'd probably go with the wire unless the rate differs significantly.

Mind if I ask what happened with XE?  I have been doing transfers with them to pay US bills, wonder what snags I have yet to encounter.  Thanks in advance.

pah, geeta, do you think I was in a state to talk about bank transfers on Saturday?!

I will phone my bank today and look into it from this end. Thanks, guys.

Also curious what happened with XE trade. I'm looking at using them right now, and possibly in the future.

But another option is my bank, that has its own ForEx department and can give pretty good rates. Not as good as xe trade, but if they are being a pain, maybe it's worth a rate that's a little less favorable.

Don't forget that the interest they owe you on the loan plus any foreign currency gain would be reportable on your UK tax return.  Just the interest is reportable on your US return.

Technically you must give them a 1099 & they should file & give you a Form 1042-S.  The IRS are becoming more diligent on 1042-S filing too!

Don't forget that the interest they owe you on the loan plus any foreign currency gain would be reportable on your UK tax return.  Just the interest is reportable on your US return.

Technically you must give them a 1099 & they should file & give you a Form 1042-S.  The IRS are becoming more diligent on 1042-S filing too!

Hm, thanks, guya. How does foreign currency gain work then? Are we looking at the difference in exchange rate when it was loaned to them vs. the exchange rate now?

Can I put my head back in the US tax sand now please?