Slightly OT: Opening a bank account in Singapore as an American
Hi all,
I'm an American that will be attending school in Singapore soon, and wanted to get some information about logistics of opening a bank account, and transferring money from the US. Does anybody here have experience with doing this? I have a few questions
1. HSBC - I have an HSBC account here already (internet banking) and I know HSBC is popular in Singapore, but I'm worried about whether I can do the foreign exchange without a huge penalty. Last time I checked, HSBC tacked on a 3.5% fee when I was trying to do a foreign wire.
2. USD denominated account - I know many banks offer this option, but does it mean that any transactions I make in Singapore are then subject to flucuations in the currency exchange rate? How common is this option?
3. What's the best way (or bank) that does foreign wires. I've looked into XE, they seem to be the cheapest, but they still tack on a 1.4% fee beyond the interbank rate.
4. Can I get a credit card in Singapore without having any credit history there?
Any suggestions would be VERY helpful...all my costs (rent, food, transport, etc) will be in SG$, so I'm trying to find the best way to pay them this way..
1. You have a choice to send FX from the US in USD. That way you get charged the rates at the recipient account ( i.e. if your account is with HSBC you get rates used by HSBC in SIN). My experience is that this gives better x-rates than translating into SGD in the US itself. (During wire transfer you can specify if the recipient account is USD). Unfortunately in addition to ccy conversion charges ( often 1-3%), you also pay a fixed charge for every single overseas credit to your account. So my suggestion, if you can afford it, is to transfer once, together.
2. USD denominated account - yes you are liable for x-rate fluctuations each time. Probably not the right approach if you ask me. I see no benefit from this.
3. Foreign wire - the best way I've found is DBS bank. They give you the option to transfer to BoNY in NYC thereby costing you only $10 as opposed to the usual $30-40. I've personally found this most reliable.
Details here
[url="http://www.dbs.com.sg/sg/personal/payment/additionalinfo/faq/inward/answers/#7"]
4.Credit Card in SIN - typically with a job you could get a cc with 2X your monthly pay with no credit history. Banks are typically not as rule bound as in the US and will consider your situation on a case by case basis.
I like the first choice, but even if I have a SG$ denominated account, can I send a USD wire to that account, and the bank would do the conversion upon receipt?
You also might consider keeping some of your funds in a US bank and getting a Capital One Visa card for use abroad. Cap One doesn't charge a Forex fee and you can easily set up an automatic debit from checking to pay the monthly bills.
If you happen to be a "trust fund kid" and can leave assets of about US$100K or more with HSBC then look at their "Premier" service. That makes all international wire transfers between your accounts in different countries free of charge.
If you happen to be a "trust fund kid" and can leave assets of about US$100K or more with HSBC then look at their "Premier" service. That makes all international wire transfers between your accounts in different countries free of charge.
haha, no trust fund here. I'm starting my MBA at INSEAD next year, and I'm using all my savings for the tuition, and no such luck for any chance at HSBC premiere. =P
If you've got a confirmed place at INSEAD then you might be able to find an astute HSBC relationship manager who would grant you Premier on that basis - that's pretty much a one-way bet for them I'd have thought.
HSBC Premier is great except they charge you bad x-rates. HSBC has a loan program for top b-school students with loan rates slightly lower than usual. but you can't get premier.
Yes but to the original q - it is possible to transfer usd and then converted at source.
capital one card is great, but you still pay the 3-5% x-rate differential, whereas if you transfer a large sum at one go (and talk to the recipient bank beforehand), you could get away with paying 1-2%.
So far, I found the classic 'cash is the king' to be the best. Yes, carrying cash, have no side effects, except there is a cap at US$10k per person/trip. The x-rates are likely the best (at money changers) in SIN to convert your US$. There are no commission or any other charges. Just shop around for the best rates b4 settling. Just make sure you mostly US$100 bills (as the higher denomination gets the best rates). Just a word of caution, evaluate the 'cash risk' against the US$200-300 savings on a US$10k wire transfer.
So far, I found the classic 'cash is the king' to be the best. Yes, carrying cash, have no side effects, except there is a cap at US$10k per person/trip. The x-rates are likely the best (at money changers) in SIN to convert your US$. There are no commission or any other charges. Just shop around for the best rates b4 settling. Just make sure you mostly US$100 bills (as the higher denomination gets the best rates). Just a word of caution, evaluate the 'cash risk' against the US$200-300 savings on a US$10k wire transfer.
So wait - do you think I would have a better rate coverting to SG$ using cash at the money changers versus a wire transfer? I know the money changers in SIN can have very good rates - but would they exchange $10k? Any suggested locations? If you're in Singapore right now, it'd be interesting to get a comparison of the rates on a wire versus cash exchange.
So far, I found the classic 'cash is the king' to be the best. Yes, carrying cash, have no side effects, except there is a cap at US$10k per person/trip. The x-rates are likely the best (at money changers) in SIN to convert your US$. There are no commission or any other charges. Just shop around for the best rates b4 settling. Just make sure you mostly US$100 bills (as the higher denomination gets the best rates). Just a word of caution, evaluate the 'cash risk' against the US$200-300 savings on a US$10k wire transfer.
There is no USA 10K cap! However, there is a reporting requirement.
You may bring into or take out of the country, including
by mail, as much money as you wish. However, if
it is more than $10,000, you will need to report it to
CBP. Ask the CBP officer for the Currency Reporting
Form (FinCen 105). The penalties for non-compliance
can be severe.
“Money” means monetary instruments and includes
U.S. or foreign coins currently in circulation, currency,
travelers’ checks in any form, money orders,
and negotiable instruments or investment securities in
bearer form.
I've looked into XE, they seem to be the cheapest, but they still tack on a 1.4% fee beyond the interbank rate.
FWIW we have had an account with XE for upwards of three years and find it useful and cost effective for ongoing transfers. There's some bureaucracy to setting up the account but if you think you might be transferring funds in future rather than one-time-only it might well be worth your trouble.
Alternatively, just use your ATM card to withdraw funds from your bank account such as HSBC or Citibank. But there will be daily limits so it may also be a good idea to bring a bank draft especially if you plan to bring large sums to pay your tuition, etc.
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Quote:
Originally Posted by kxl19
haha, no trust fund here. I'm starting my MBA at INSEAD next year, and I'm using all my savings for the tuition, and no such luck for any chance at HSBC premiere. =P
If you're taking the HSBC loan, HSBC in Singapore will open a local bank account for you.
Also, if you have an Amex credit card history in the US, you will be able to get an Amex card in Singapore without a credit history there...follow the instructions in the links below:
