My uncle passed away in England, and being a beneficiary I have a bank cheque in pounds to cash. It was shared between all the cousins - (and there are a few) so it's not a fortune, but will work out to over $5k when converted, so my credit union is going charge me the $15 processing fee and then a $65 conversion fee. I know $80 out of $5000 isn't much, but my brother was only charged the processing fee, not the conversion fee so…. I'm thinking of opening a new account to deposit it in (is that ridiculous?)
So does anyone know of any bonuses for opening a new account currently? I know there are a few savings accounts with bonus interest, but they all appear to need to be linked - which would mean I'd need to deposit the cheque somewhere else first anyway. So I think I'd need an everyday account with a bank or credit union (that has less fees than mine!)
My brother is with bankwest, so they may be an option, but I thought I'd check here for other ideas. Not sure how much I'll use the account, so probably don't want a monthly fee, or need lots of other options - don't really know.
Would you open a new account elsewhere to avoid the extra fee? Am I being too cheap? I'll probably transfer it onto the mortgage in a couple of months anyway, but $65 saved is $65 saved - right?
When it comes to currency conversions there are a few other things to take into account. The upfront fees are of issue, but there is also the currency conversion rate they are offering. This won't be the "mid" rate, but will be the "bid offer" spread rate. Although many banks don't charge up front fees, they charge a higher bid offer spread. You need to ask around a see what is the best exchange rate you can get. Someone like ozforex (Macquarie bank company), give very good rates. Also xe.com. Get a quote for the 5,000 gbp and then compare it to the banks.
You then need to add up all the fees to do a proper comparison. I.e. compare the amount in Australian dollars after conversion and see who is the best. Do a comparison against all the banks by asking them. (ING are giving free money for opening an account with them- so they may be worth a shot.)
Unfortunately, things like international cheques increase the costs of transferring money. Much cheaper to do an international conversion, i.e. deposit in a sterling bank account and then do an electronic transfer with ozforex or xe.com.
Anyway, remember that the $Aus v Pound is moving all the time, so a small currency movement in your favour will equal the amount you are paying in fees. The pound weakened today, so you have probably lost that $65 compared to depositing the money a few days ago, in any case.