English Forum Switzerland

English Forum Switzerland (https://www.englishforum.ch/forum.php)
-   Finance/banking/taxation (https://www.englishforum.ch/finance-banking-taxation/)
-   -   best rate to transfer CHF to USA(Citi Bank)? (https://www.englishforum.ch/finance-banking-taxation/9685-best-rate-transfer-chf-usa-citi-bank.html)

suddenyy 09.07.2007 07:09

best rate to transfer CHF to USA(Citi Bank)?
 
Hi there,

I have left CH for a while, and I have tried to keep my
UBS account with my friend's address in CH. But since from I lost my wallet and had to reorder the bank cards, the new pin code was sent via register mail, I failed to show up to pick it up, therefore, the account was blocked due to 'loss of correspondence'....
I was told that if I change to my USA address, I won't be able to use ebanking, due to some law blahblah, so I decide to close UBS account and transfer all the money to my citi account.
Well, before I call UBS to do so, I just wonder if there is some way to get a better rate than usual one? The amount is >50k CHF. And I suppose is ok to transfer such amount of money between CH and USA???

Any opinions or comments are welcome!

Shorrick Mk2 09.07.2007 10:44

Re: best rate to transfer CHF to USA(Citi Bank)?
 
Quote:

Originally Posted by suddenyy (Post 81032)
Hi there,


Well, before I call UBS to do so, I just wonder if there is some way to get a better rate than usual one? The amount is >50k CHF.

Yeah. Wink knowingly at the banker while thumbing through a bundle of new crispy two dollar bills.

I'm sure he's going to say "Why, yes, of course we're willing to lose some money to give you a better-than-market rate".

FaithK 16.07.2007 09:12

Re: best rate to transfer CHF to USA(Citi Bank)?
 
>50k not a problem. If you do it through a bank officer, then you're probably going to get a 'duck' rate. If you have access to e-banking, than Sfr10 is all you will pay and you get market rate. If you can re-instate your ebanking, move your money out to Citi then close the UBS bank account, that would be best case scenerio.

http://www.oanda.com/

is good for mid market rates. Look at the bid/ask for your own needs.

miniMia 16.07.2007 10:32

Re: best rate to transfer CHF to USA(Citi Bank)?
 
Don't forget that anything over 10,000US* will get flagged by the "authorities".


*I can't find the exact amount right now. It could be 9000. Point is you should check out the tax implications (if any) of sending in CHF50K.

Naps 16.07.2007 11:25

Re: best rate to transfer CHF to USA(Citi Bank)?
 
First Rate FX was recently recommended to me as giving a good exhange rate - don't know if it's of any use to you, but just in case...
http://www.firstratefx.com/

FaithK 16.07.2007 14:19

Re: best rate to transfer CHF to USA(Citi Bank)?
 
Quote:

Originally Posted by miniMia (Post 83490)
Don't forget that anything over 10,000US* will get flagged by the "authorities".


*I can't find the exact amount right now. It could be 9000. Point is you should check out the tax implications (if any) of sending in CHF50K.

The 10k limit is for "hard cash" carried over to the US. There are no tax implications for moving money to your own account. You will have to declare your interest earned to the IRS.

My2pups 16.07.2007 14:47

Re: best rate to transfer CHF to USA(Citi Bank)?
 
I thought when you transferred more than US$10K out of the US, it could get flagged, regardless of whose account it was going to (Homeland Security and RICO thing). Does not the same thing happen to transfers into the US?

I am not sure about this, but as I do a lot of transfers back and forth with my company in the US, I seem to remember someone telling me this...

fduvall

Quote:

Originally Posted by FaithK (Post 83573)
The 10k limit is for "hard cash" carried over to the US. There are no tax implications for moving money to your own account. You will have to declare your interest earned to the IRS.


Lex 16.07.2007 14:52

Re: best rate to transfer CHF to USA(Citi Bank)?
 
in australia its the same.

Anything at $10K Aus and over gets flagged whether your account or someone elses. If its the same in US than probably more to do with IRS than homeland security i would imagine

FaithK 16.07.2007 14:58

Re: best rate to transfer CHF to USA(Citi Bank)?
 
If you wire money from your own CH acct to your personal US acct. and vice versa, no problems.

Homeland security only comes into play when you wire money from ABC acct to XYZ acct, and when it's a big amount, the bank will ask you to sign a declaration before they will release the money into the acct but you will still earn interest in the escrow acct.

suddenyy 16.07.2007 21:18

Re: best rate to transfer CHF to USA(Citi Bank)?
 
Quote:

Originally Posted by FaithK (Post 83573)
The 10k limit is for "hard cash" carried over to the US. There are no tax implications for moving money to your own account. You will have to declare your interest earned to the IRS.

Thanks for all the replies.
I am not familiar with USA (or CH) tax declaration. I suppose the tax of the interest has been taken from the Swiss side. So I only need to declare the tax
for the interest I earn for the period in my citi account?
BTW, is now CHF weak against USD? Shall I wait a bit to do the transaction?

FaithK 17.07.2007 07:12

Re: best rate to transfer CHF to USA(Citi Bank)?
 
Quote:

Originally Posted by suddenyy (Post 83742)
Thanks for all the replies.
I am not familiar with USA (or CH) tax declaration. I suppose the tax of the interest has been taken from the Swiss side. So I only need to declare the tax
for the interest I earn for the period in my citi account?
BTW, is now CHF weak against USD? Shall I wait a bit to do the transaction?

When you close your acct, they will take the w/h tax on the Swiss side. Wrt taxes, it gets a little complicated. The w/h tax has always been 35% for us on any interest earned, assuming your tax bracket is less/more than that, it will be part of w/h paid and you may/may not be eligible for the difference dependent on how much w/h or not that you've had. So you should always declare your interest earned. Btw, wrt wiring money to and fro from one's personal accounts, that statement is made based on the assumption that he/she has fully declared their foreign assets to the US IRS as well as to the US Treasury now. All US persons need to fill in form TDF 90-22.1 reporting all non-US bank or financial accts over which he/she has a financial interest or signature exceeding US$10k at any time during the year (even if only for 1 day).

With effect from Oct 2004, penalties for incorrect filing or failure to file have been increased to the greater of US$100k or up to 50% off the value of the acct per incorrect declaration. So, just a heads up for anyone on the 'flagging' question. And assuming you have declared all your foreign assets, there is no 'flagging' issue when you wire money to and fro from your personal bank accts.

Waiting for FX rates to move in your favor can be a hit and miss affair, unless you watch it everyday and read market news and make sure you are on top of the numbers. Depending on how much you have, you may not want to do that, because moving money to the US and putting it in CDs would yield a higher return for you than having a measly return on interest sitting in UBS. Here are the historical FX rates for US/CH, from 1 Jan till now, the low has been 1.1984, high 1.2571, average 1.2268 these are mid market rates. So, it's really sitting at the low now, currently US/CH is trading at 1.2015 mid market.


All times are GMT +2. The time now is 19:59.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0