USD account, for future USA travel

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  retiredfeline on 25/09/2016 - 12:03

  +1

  Sounds like a lot of effort and risk for uncertain return if you ask me. But doesn't Citibank offer global accounts?

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    StewBalls on 25/09/2016 - 14:28

    Sounds like a lot of effort and risk for uncertain return if you ask me.

    This.

    Take it from somebody who made the mistake of doing this same thing a few years back with a USD Bank of China account for some business wheelings & dealings, it ended up being a costly PITA…and it's not as straightforward as you'd think either, there always seems to be some caveat on depositing or withdrawing when & how you want to…or a hidden fee (like puffy director's pants) even if they can arrange it.

    If you're only doing it for traveling, just exchange on an ad-hoc basis, it will work out cheaper in the long run, with far less hassle. But, if you really must accumulate USD, just buy cash! ;)

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  inherentchoice on 25/09/2016 - 13:40

  If the AUD is strengthening then shouldn't you wait? Or are you saying it will strengthen a bit and then fall?

  You can read what the analysts are forecasting about the dollar but they have different opinions and no one really knows.

  Unless you are changing a lot of money I doubt the bank fees will be worth it. Probably better to just change cash.

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  bluedufflecoat on 25/09/2016 - 13:56

  I don't know.. :)

  I just thought it was doing a bit better lately, and wondering if it was time to accumulate now, vs. later when it could be lower..

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  jason101 on 25/09/2016 - 14:08

  I'm not advocating either for or against these but a colleague at work told me they give the ability to lock in a rate at the time of deposit: http://auspost.com.au/travel-id/load-and-go-travel-card.html

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  dlf73 on 25/09/2016 - 16:32

  I did exactly this many years ago. Opened a US account with HSBC locally and got a MasterCard debit card with it. I already had a local HSBC credit card. Not sufe if you had to be an exisiting client.
  I used a forex company to transfers funds from here to there as they have better rates than any bank.
  I never had any issue withdrawing money from it either in AU or US. Also no issues online.
  Had no fees as long as $10,000 was kept in the account. Did go below this at one stage but managed to get it credited after i complained.
  As I said this was setup many years ago, so there may be better options and can only comment on my experience, but it does cover your three points.
  I do suggest altavista sites that compare credit cards to maybe help find what best suits your needs. Hoe this is helpful.

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  niner on 25/09/2016 - 17:17

  AUD/USD will probably face a drop if the US Federal Reserve increases the federal funds rate in November/December.
  I think it's down to the number of jobs produced in the next few months and economic growth indicators.

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  cloudy on 25/09/2016 - 17:45

  Go to something like ozforex, make an exchange for USD, cost you maybe $10 in fees, and by the time u want to go on your holiday change it back to AUD. No setting up foreign bank accounts etc, no crap bank rates.

  Beware of travel cards that lock in a rate now but give dismal rates, that can cost you a lot.

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  bluesky on 25/09/2016 - 19:33

  You can also load currency into travellers' cards, such as Qantas Cash or Nab Traveller Card. Qantas Cash in the recent past have offers such as :

  • special rate offers for a set of currencies (IIRC was a deal in OZB, and some were commenting the rates were good during the offer)

  • the special which expires today has the following offer:

  Load a minimum of AU$1,000 in foreign currency and we'll reward you with 2 points for every dollar loaded, up to a maximum of 40,000 points*. That’s enough Qantas Points for a one-way Economy Classic Flight Reward to Phuket (plus taxes, fees and carrier charges**).

  Plus, you'll also earn 1 point for every AU$1 spent on eligible purchases in foreign currency^.

  Having said that, please research the exchange rates they use, against other alternatives, to make sure it is a good deal.

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  Drifta on 26/09/2016 - 00:18

  CBA offers a USA foregin currency account with no fees, but you also earn no interest on funds in the account. You need to speak to a banker in branch to open it. I currently make use of that account and plan on using oz forex to convert some USD I have that I would like to convert to AUD when the rates drop in December. I'm banking on a rate drop in December as long as trump doesn't come to power as the US fed is likely to hike interest rates then if Hilary comes. If trump comes, no idea what will happen as he has some f***d policies.

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  Gershom on 26/09/2016 - 08:16

  Not a chance, forget it.

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  mchoodie on 28/09/2016 - 21:10

  How much are you looking to spend?

  You should also consider he opportunity cost if your USD isn't able to earn any interest, like the AUD could sitting in a savings account.

  All in all I doubt it would be worth risk and effort. Your effectively trading fx this way. And you'd be guessing on the movements at best.

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  Skramit on 29/09/2016 - 08:04

  The OP theory behind doing this is madness. The speculation of AUD/USD exchange rate is a mugs game and best left to the experts.

  Why take on massive risk for absolutely minimal gain?

  If OP genuinely thinks the rate will drop significantly, you could simply buy some USD cash now and put it under the mattress so to speak. But even then you might only save a couple of dollars max depending on how much you convert now verses just before your trip.

  In summary, forex speculation is highly risky for the average ozbargainer and not worth the effort, especially the pain of opening a usd bank account on top.

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  lainey13 on 29/09/2016 - 16:04

  Cold hard cash.

  I've had a bank account in the UK, and it was a pain to maintain. Any communication was done via post to an address I was no longer at. The card expired and I couldn't use it to get my money out. When I visited the UK I needed multiple bank meetings to withdraw the money and close the account. They used a stupid physical code generator which I had to use to login and it stopped working. It was a pain!