UK Bank Accounts/TorFX Transfer

[Big Papa Zone 93]

Been reading this thread, I'm curious - is there any reason a 3rd party transfer company needs to be used at all? Can't you simply transfer money from the UK bank account to the US bank account? That's what I do.🤔

[SL2024 60]

1 hour ago, Big Papa Zone said:

Been reading this thread, I'm curious - is there any reason a 3rd party transfer company needs to be used at all? Can't you simply transfer money from the UK bank account to the US bank account? That's what I do.🤔

 

You can transfer money from a UK bank account to a USA bank account but there can be a transfer fee for doing so depending on which bank you are with

[SL2024 60]

And the transfer fee with the bank might be higher than if you do it through another party/provider

[Melancholic Mage 87]

On 9/20/2024 at 8:57 PM, Big Papa Zone said:

Been reading this thread, I'm curious - is there any reason a 3rd party transfer company needs to be used at all? Can't you simply transfer money from the UK bank account to the US bank account? That's what I do.🤔

 

Transaction rates are apparently high with most known UK bank accounts, hence the third party transfer options like SL2024 said. I'm still trying to get my accounts in order and I'm finding it a struggle - I thought tying up loose ends in the UK would be one of the easier parts but as it turns out it's definitely not.

[Lil bear 4,149]

1 hour ago, Melancholic Mage said:

 

Transaction rates are apparently high with most known UK bank accounts, hence the third party transfer options like SL2024 said. I'm still trying to get my accounts in order and I'm finding it a struggle - I thought tying up loose ends in the UK would be one of the easier parts but as it turns out it's definitely not.

Consolidate all your uk accounts into a single bank account. Close them as you go. We then used OFX to transfer into a US account … For over a reasonably small limit .. for us it was $1000 AUD.. there was no transfer fee or charge, and their exchange rate was 1-2 % higher than any other options   Takes 3 days to be released into your account but as a “money market newbie” I found their customer service agents very helpful and they walked me through each step as needed . 

[Tesco 70]

On 9/20/2024 at 8:57 PM, Big Papa Zone said:

Been reading this thread, I'm curious - is there any reason a 3rd party transfer company needs to be used at all? Can't you simply transfer money from the UK bank account to the US bank account? That's what I do.🤔

It’s easy to transfer from your UK bank to the US, but not visa versa. To transfer from a US account the UK, you must present yourself before the banking officer at a local branch and then they will set up the ‘wire’ it’s a bit like banking of the 1980’s (have a well know major US bank too). Wise uses peer to peer transfer, so no international transaction per se. If you transfer from your UK account to the US with Wise for example, then the funds are simply credited to you from their US bank to your own, (same in reverse). Credits to the UK are made within seconds, to the US about a day. It uses ACH, so once set up it’s a dream to use. For international banking, I’ve found Wise to be invaluable. Another important note is the massive savings with exchange rate and fees against traditional banks.

[SL2024 60]

2 hours ago, Lil bear said:

Consolidate all your uk accounts into a single bank account. Close them as you go. We then used OFX to transfer into a US account … For over a reasonably small limit .. for us it was $1000 AUD.. there was no transfer fee or charge, and their exchange rate was 1-2 % higher than any other options   Takes 3 days to be released into your account but as a “money market newbie” I found their customer service agents very helpful and they walked me through each step as needed . 

 

I agree with consolidating accounts and just having 1 UK bank account.

[SL2024 60]

19 hours ago, Melancholic Mage said:

 

Transaction rates are apparently high with most known UK bank accounts, hence the third party transfer options like SL2024 said. I'm still trying to get my accounts in order and I'm finding it a struggle - I thought tying up loose ends in the UK would be one of the easier parts but as it turns out it's definitely not.

I agree with you that it is definitely not easy. I am currently trying to sort out things and there is definitely a lot to sort out. Of course everyone is different as well as some people may have longer notice periods with work and some might have more assets than others which they need to sell such as a house and car. 

[Melancholic Mage 87]

Thanks for all the tips.

 

As it stands my one-way flight is booked for October 1st. It's coming up fast!

 

I have one online bank account with Starling, then two accounts with NatWest which I've had since I was young. I mulled over all options and ultimately something @OldUser said in another thread resonated with me. 'Don't burn any bridges.'

 

I've downgraded my accounts to ensure they're fee free but ultimately I've decided I'm going to let them sit there. Most of my transactions should I need to make them will be with Starling, and my NatWest accounts which hold the majority of my life's savings will be used to finalize any outstanding payments. Then I'm going to move over all my money to Wise, then from Wise, to my husband.

 

It's a tad messy and in the future I may close the accounts for good if the banks don't wise up and do it themselves, but it's good to have them as options for now. I appreciate all the advice though and admit I was tempted to just shut down shop entirely with everything in the UK. But it's proving more a headache than I thought so...

 

When I transfer via Wise I'll let you all know how that goes. Right now though I'm stuck in financial limbo.

[Tesco 70]

11 minutes ago, Melancholic Mage said:

Thanks for all the tips.

 

As it stands my one-way flight is booked for October 1st. It's coming up fast!

 

I have one online bank account with Starling, then two accounts with NatWest which I've had since I was young. I mulled over all options and ultimately something @OldUser said in another thread resonated with me. 'Don't burn any bridges.'

 

I've downgraded my accounts to ensure they're fee free but ultimately I've decided I'm going to let them sit there. Most of my transactions should I need to make them will be with Starling, and my NatWest accounts which hold the majority of my life's savings will be used to finalize any outstanding payments. Then I'm going to move over all my money to Wise, then from Wise, to my husband.

 

It's a tad messy and in the future I may close the accounts for good if the banks don't wise up and do it themselves, but it's good to have them as options for now. I appreciate all the advice though and admit I was tempted to just shut down shop entirely with everything in the UK. But it's proving more a headache than I thought so...

 

When I transfer via Wise I'll let you all know how that goes. Right now though I'm stuck in financial limbo.

Wishing you well for next Tuesday, will be here before you know it! Keeping UK accounts is best, as you’ll not be able to open another in the future as a UK non resident. The banks will report you to the IRS under FACA, once you become a US resident. (They cross reference with Treasury form FinCEN114 and IRS form 8938, (if threshold exceed)). Your CPA will know what to do when you file your 1040 for 2024.

 

[SL2024 60]

16 minutes ago, Melancholic Mage said:

Thanks for all the tips.

 

As it stands my one-way flight is booked for October 1st. It's coming up fast!

 

I have one online bank account with Starling, then two accounts with NatWest which I've had since I was young. I mulled over all options and ultimately something @OldUser said in another thread resonated with me. 'Don't burn any bridges.'

 

I've downgraded my accounts to ensure they're fee free but ultimately I've decided I'm going to let them sit there. Most of my transactions should I need to make them will be with Starling, and my NatWest accounts which hold the majority of my life's savings will be used to finalize any outstanding payments. Then I'm going to move over all my money to Wise, then from Wise, to my husband.

 

It's a tad messy and in the future I may close the accounts for good if the banks don't wise up and do it themselves, but it's good to have them as options for now. I appreciate all the advice though and admit I was tempted to just shut down shop entirely with everything in the UK. But it's proving more a headache than I thought so...

 

When I transfer via Wise I'll let you all know how that goes. Right now though I'm stuck in financial limbo.

Personally I would have at least one UK bank account open for the foreseeable just in case after the others have been closed but whatever works best for you and what you are most comfortable with.

[Melancholic Mage 87]

2 hours ago, Tesco said:

Wishing you well for next Tuesday, will be here before you know it! Keeping UK accounts is best, as you’ll not be able to open another in the future as a UK non resident. The banks will report you to the IRS under FACA, once you become a US resident. (They cross reference with Treasury form FinCEN114 and IRS form 8938, (if threshold exceed)). Your CPA will know what to do when you file your 1040 for 2024.

 

 

Thank you! Admittedly I don't understand half of the abbreviations you just slung at me there. I know the IRS but have zero familiarity with all the other forms you mentioned. Could you explain a bit more?

 

Every little helps, Tesco! 

 

2 hours ago, SL2024 said:

Personally I would have at least one UK bank account open for the foreseeable just in case after the others have been closed but whatever works best for you and what you are most comfortable with.

 

Agreed, I'll definitely always have one account but I was going to keep them pretty minimal in funds. I did consider leaving maybe £500/£1k in my NatWest savings account to just let it sit there and grow, but my biggest concern is possibly causing problems with IRS and also getting locked out of my banking. (2FA being on my UK number and I'm having a nightmare trying to figure out a better way of keeping it active other than paying 50p every three months to send just one text to keep it alive.)

[OldUser 6,476]

4 minutes ago, Melancholic Mage said:

 

Thank you! Admittedly I don't understand half of the abbreviations you just slung at me there. I know the IRS but have zero familiarity with all the other forms you mentioned. Could you explain a bit more?

 

Every little helps, Tesco! 

 

 

Agreed, I'll definitely always have one account but I was going to keep them pretty minimal in funds. I did consider leaving maybe £500/£1k in my NatWest savings account to just let it sit there and grow, but my biggest concern is possibly causing problems with IRS and also getting locked out of my banking. (2FA being on my UK number and I'm having a nightmare trying to figure out a better way of keeping it active other than paying 50p every three months to send just one text to keep it alive.)

500/1000 GBP ain't going to cause the headache. You only need to report 10000 USD or more going through your foreign accounts to IRS. If it's below, not much to file.

[Tesco 70]

The US authorities will need you to report any foreign bank accounts on an annual basis. Take a look at those forms I mentioned, (you can Google them). You US accountant will know what to do though. Once a UK bank knows you’re a US resident, the balances are reported to the IRS. The Treasury form is straight forward, and is only needed if you have over $10,000 in non US bank deposits or retirement savings.

Edited September 23 by Tesco
Addition

[Melancholic Mage 87]

Thanks for that, all makes sense. Do pension amounts above £10k need filing as well? I plan to empty two of my accounts but given this I'm wondering if it's best to close them now to avoid the paperwork. I'll never keep £10k in them let alone more than that, however. It's all meant to be spare chump change incase I need it in future back in Blighty. 

 

I do have over £10k but that is all going to be transferred to my husband: probably once I land in the US. I imagine at that point it's fine since it's in a monitored US account. His family don't use accountants and manage to file their finances without issue so I'm sure I can too, immigrant or no. We got through the mess of immigration forms and filing alone so confident we'll be okay. 

 

Just when I think I have things prepared in my head though I hear things I didn't at all consider. Thank you for all the info.