I've got quarterly dividend income from a UK company. Usually they mail me a cheque via snail mail to my parents' place, but the aussie bank fees to cash these are exorbitant.
I'm just wondering if there's a simple and fast way to set up a UK bank account to receive the dividends, or some sort of aussie product that does a 'virtual' UK bank account (not sure what their equivalent of a bsb/account number is.
You need a sort code and account number. Check out Citi bank UK. They might be able to help - I set one up whilst I was working in KSA. Although, I am also British.
It was over a decade ago when I did this but HSBC has a branch in Melbourne CBD and I setup a UK bank account through them back then. Not sure if this is still possible.
Was it a UK-domiciled bank account, or an Aust-domiciled bank account in GBP?
There used to be implications if a non-resident had a UK-domiciled account. Relatives of mine have recently opened one in the UK, but had obtained social service numbers, residential address, etc. prior.
proper UK-domiciled bank account. I do recall they required a UK residential address. I used my friend's. It was some sort of basic account and didn't have any Visa/MC debit or anything, so useless for online purchases, just a simple HSBC UK bank card.
Rules may have changed since then. I did have a UK working permit at the time.
Generally speaking you can only open a UK bank account if you are resident (or soon to be resident) in the UK, and must supply proof of Id and residence. There are some limited exceptions, but if you are resident in Australia you will not be able to open a UK bank account.
There are some 'options' though. As mentioned, Transferwise. You can legally open a Transferwise account from Australia and request a UK account, of which you will be issued a sort code and account number, which means you can have pounds paid into it directly (with fees). But this type of account is designed for people to transfer/convert currencies within the Transferwise account, and you will not be given a debit card (cash card) cheque book or any other means to draw cash directly from that account, so you will have to repatriate those funds to your Australian account (with fees). It will be cheaper than cashing a UK cheque in Oz, but probably not what you are looking for?
Before anyone else mentions it, there is 'Monese' which ia a virtual app-based bank in the UK where you can open an account through a mobile app, and be issues a UK bank account and most importantly a debit card. However only residents of the UK/EU/EEA are allowed to open an account.
To be fair, you have 2 options.
1 Provide the bank details of your parents, and have the dividends paid into their account. They can draw cash and give it to you when you are next over?
2 When you are next in the UK, make an appointment with a bank (preferably your parents bank, as this helps with proof). lots of IDs and utility bills, tell them you are living with your parents for the next 6 months+ and you should be ok opening an account whilst you are there.
Transferwise state on their website there is no fee for receiving money.
Within a Transferwise bordeless account, you can transfer the funds from GBP to AUD for a cost of 0.45%.
The exchange rate is the mid market rate equal to what you see on xe and google
Then transfer the AUD into your everyday transaction account for $1.20 fee.
If theres an easier and cheaper way to do this as an Australian resident let us know.
As stated by BOGOF, you can only open a UK bank account if you are resident in the UK (or about to become so).
Pretty glad I didn't shut down my UK bank account when I left as it has been very useful.
If I was you I'd check out Citibank Global which has been discussed previously in these forums.
I am pretty sure you can set up a virtual UK bank account to have GBP paid directly into the account and the Fx rates (Cit's own) are reasonable.
Barclays suspended my unused account with a pound in it and placed my life's savings in a holding account. They wouldn't let me access the account without popping into a branch. I popped into the UK recently but the banks were closed. Those bankers from the end of Mary Poppins still have my pound.
In 2015 an OzBargainer walked into an NAB branch with a foreign cheque and deposited it into his Citibank Plus Debit account for free. He was charged the Visa conversion rate (which Citibank Plus used at the time). What happened next would re-shape the future of thousands of people…
References: https://www.ozbargain.com.au/node/192156
P.S. I think a digital solution (e.g. Transfwise etc) is superior anyway since time is money, honey. And you'd prefer to convert to AUD regardless, I assume, making a foreign account only slightly better than your current situation.
You can apply for an international account online. Barclays, Lloyds, HSBC and NatWest all offer international bank accounts.
Thanks guys - I've signed up for a borderless Transferwise account.
Hopefully, once the verification comes in, I'll be able to test it and give it a crack
Transferwise