Taking advantage of the present US exchange rate

[Wireless]

Hello,

I have a question of a financial nature.

I have been saving up for 2 years to go to the States and train for an FAA CPL/IR. I have about another month of saving to go. I am going to start getting detailed quotes from training providers then see about sorting a validation and visas etc. I estimate to be going out in May. These are my questions:-

1/. I would like to know what you think of taking advantage of the good Sterling/Dollar exchange rate? I have just a UK current account. I have limited knowledge of finance and I was wondering if it were possible to convert around 85% of my funds to US dollars now (leaving aside for airfares etc). It sounds stupid but can you hold an amount in foreign currency in a UK bank account? If not what account would allow this?

2/. Also what are the cheapest ways that people use to convert money when paying for training? I have heard the Post Office is OK.

I am wary as I have no knowledge in this area as I have always had to exchange only small amounts on holiday. I listen to Radio 2 and an accountant chap has a spot on the Johnny Walker show. He gives the commercial rates and has been saying that now is a good time to take advantage. But what's the best way for me?

Any advice greatly received. Bill

[747FOCAL]

Just bring your pounds to the states and you will get a good exchange rate at any bank. Especially if you are opening a new account. :ok:

[Naples Air Center, Inc.]

Wireless,

If you want to take advantage of the exchange rate, look into wiring your money to the U.S., since you will be wiring enough money to cover a course and living expenses, it might be enough to get the business rate. (Which is usually a better exchange rate.)

Take Care,

Capt. Richard J. Gentil, Pres.
Naples Air Center, Inc.

[Wireless]

Thanks for the help.

Straight and level,

Where do I need to go on the Nationwide website to find the info about setting up a UK-US dollar acount? Could you give the address? Many thanks.

Capt. Richard J. Gentil,

How do I wire money into the US? Please excuse my ignorance as I really am rubbish at financial things! I take it that the reciprical bank account would be in my name or it would be that of the training provider. The only point of concern about the latter is that I will not be ready to pay the training provider until I start training in May/June when the rate may have dropped. I may have got it wrong of course!


I am away until Friday so I won't be able to reply until then, so please don't think I'm ignoring your posts.

Thanks, Bill

[Naples Air Center, Inc.]

Bill,

You need to either setup an account with a U.S. Bank or transfer to the school you will be training at, until you can come to the U.S. and setup an account at a local bank by the school.

We have a half dozen students that already transferred money to take advantage of the favorable rates. When they come over, we take them to our bank so they can setup their own account and we transfer their money in their account.

Take Care,

Richard

[FlyingForFun]

Wireless,

Why not go into a couple of local high street banks and building societies, and ask them for their advice? Since Nationwide has specifically been mentioned has having a USD account, make sure that you include them in your selection. With the amount of money you're talking about, any bank should be happy to provide you with an adviser who will spend some time finding out exactly what you plan on doing with the money, and who will know what the best option is that their bank can offer you. If you really are as "rubbish at financial things" as you say you are, the adviser will be to explain exactly what is required, sort out any jargon, offer you reassurance and so on.

FFF
----------------

[no sponsor]

If you are putting it into a USD account here ask about any charges they may have, specifically about transfer charges. You might find that there are charges of 1-2.5% of the transaction amount to transfer to an overseas account, particuarly if you are transferring large sums, i.e. over $25,000.

Also ask exactly what the process is for trasferring your USD elsewhere. You might find that there is some daft rule that during the exchange, the USD in your account is transferred to GBP and then transferred back into USD at the other end. (I wouldn't put it past Barclays).

Avoid putting all that cash into someone else's business account. It might sound easy, but if that business goes bankrupt you would have lost the lot - the minimal gain is not worth the risk IMHO. (I'm not suggesting that Capt. Gentil is about to go bankrupt, but there is a standing warning here on PPRUNE never to pay upfront, and as far as I am concerned, a transfer of savings amounts to the same thing).

[NACGS]

Why not go and buy good old fashion US $ travellers checks, they are by far one of the simplest and cheapest ways to take advantage of the exchange rate, and if you need the money you simply take the check and cash it in. The money is always with you within sight.

[Naples Air Center, Inc.]

no sponsor,

This thread was originally posted the Questions Forum. It looks like the moderators moved it to this forum.

At the time I was just responding in general to a question. (I do not believe Wireless ever looked at coming to my school.) This thread will now transform into a Flight Training Thread due being moved to this forum.

I agree with you, keep the money in your pocket, too many schools have taken full course fees from students up to the morning that the close the doors and stop trading.

Other options I was thinking about for Wireless are opening an account with a bank that has branches both in the U.K and the U.S. or a brokerage firm like Merrill Lynch (http://www.ml.com/). Since brokerage firms deal with the Stock Market, Mutual Funds, Bonds, T Bills, etc., their customers move large sums of money on a daily basis. They offer wire services to their customers at a very good rate, in many cases, better than a bank rate. (The only catch, they usually have a minimum wire amount of $10,000.00)

Take Care,

Richard

[Charlie Zulu]

Hello Wireless,

I've just (today) gone and wired $500 as a deposit to a flying school in Naples (for the Multi addon to the FAA CPL/IR). I am not sure of the exact exchange rate, that will be given to me in a letter that is sent to my home address after the transaction has taken place. But it is likely to be better than the US$1.76 to the UK£ that the post office is giving in Travellers Cheques.

As my current account is with Nationwide I just asked them to transfer $500 in US currency to the bank details the flying school has provided me. There is a little form to fill out with my details, the schools bank account details and the rest is taken is taken care of for me by Nationwide.

After the bank visit I went to the post office and obtained $4000 in travellers cheques which cost me £2267.06. The post office does NOT charge any fees or commission on US Travellers Cheques or Currency.

Even though I am not going to the US until 28th June I have taken this approach as I'm not sure what the exchange rate is going to do in the next few weeks / months. Better to get it now for piece of mind, then again it could go up a lot more! Who knows, eh?

I've got to change a few more thousand dollars in travellers cheques around May time as I don't have enough pounds in my account at the moment to transfer the whole lot to US dollars!

Last year I just transferred the $500 to NAC as a deposit and then took $14000 with me in Travellers Cheques. If you do take more than $10000 in travellers cheques / cash with you to the USA then don't forget to declare it to the customs officials at the airport in the USA, it just means you'll have a form to fill in, that is all).

Good luck with the FAA CPL/IR course, did mine last July and it was hard work but very enjoyable. As my examiner said... Enjoy the flight training.

Oh and enjoy the day out in London at the US Embassy for the visa (its a non event really, but you are kept waiting ages)! :)

Best wishes,

Charlie Zulu.

[Wireless]

Thanks to all. Some very helpful advice there. I'll try and catch Nationwide on Saturday morning if they're open. The same goes for the post office (the problem with living in a lorry all week).

Thanks, Bill

[XL5]

Barclay's have an office in the states, or at least did a couple of years ago.....Detroit or Chicago, can't remember which. Point is that funds from your local UK branch can be wired to a Barclay's dollar account in the states ( set up in the UK) and from there into any US bank account. The more money you move the better the exchange rate, try playing the game with several UK banks as most have US branches. It pays to shop around and you may get a better deal by offering to open a new UK account for the transfer rather than going with what's in situ.