Apologies for some duplication here, but the last similar thread was a few years old…
Wondering what would be the best way to exchange a GBP cheque issued by a legal firm distributing an intestate relative's monies?
Foreign currency account here in Aus'?
I believe that the cheque/draft will have a six month lifespan, so there may be some opportunity to await favourable exchange rates?
Having seen Sterling move between 3:1 and it's current levels, it would be great to see some good options…
Want to get best rate but believe banks use VISA transaction rate as the exchange happens.
No, that only happens if you're using a Visa card at an atm to withdraw money. In your case, you'll end up getting the bank's shitty exchange rate for cash forex(usually +3% on top of the wholesale rate) plus whatever extra fees the bank will charge for a foreign cheque. Not a great way to get the money in your hands, especially if you use one of the big 4 banks.
If you're going to do it this way, I would suggest finding a bank with better forex rates, like hsbc or Citibank, both of which typically have better forex rates than big 4. Also, look into Citibank plus transaction account, they don't charge to process foreign cheques. I use them to deposit my US dividend cheques when I get them.
Thanks Kenb0, for a great reply. I've done as you suggested and have been reading up on the plus account. Really appreciate your input.
I'll be further looking into their exchange rates and feel it's worth taking my time and watching the rates…
I've looked and looked. Is there anywhere that citibank plus says this in writing?
@ribbonsofnight: Best to contact Citibank.
Thread is old and no link given about processing foreign cheques.
May 2018
Not sure. If you can hang out until August 2019 then I can provide some advice.
I got a cheque from HMRC and sent it my sister to deposit into my UK account, then used https://www.ofx.com/en-gb/ for exchange. If you don't have a UK account, do you have a trustworthy friend? Ask the company to cancel the cheque and issue a new one to your friend, then they ofx to you.
That is an option, just looking for best return.
Pop it in a uk account through a friend etc, and then use transfer wise . I do this with British military payments I receive
Thanks unclesnake, might be the go…
How much is the amount? If it is just a couple thousand pounds it is not worth the effort.
Exactly
Are you a citizen? I'd just open an English savings account and deposit the cheque there. Use a relative's address as the address and put it in a high interest account.
Then next time you're over there you'll have some spending money.
You can open a foreign currency GBP account in Australia, HSBC and Westpac do them with no minimum balance and monthly fee. If its a large amount you can convert it later at a favorable rate by speaking to their FX dealer.
Thanks
Citibank Global Currency account.
Deposit now. Exchange when it suits you and Citi has reasonable rates
Thanks
Why not deposit it to your bank account?