UK check in US account?

July 5, 2009 8:23 AM

I want to deposit a UK check (written for £) into my bank account. Will this be a problem? Will they hold it for a ridiculous period of time? I assume they'll charge me a conversion fee, but how much? (I searched my bank's website and found nothing, thus I ask Mefi.)
posted by sdn to work & money (12 answers total)

I know at my bank (credit union), I had to fill out a form basically saying that I knew it was a foreign check and that there was something like a $5 charge for just cashing it and that the conversion rate sucks into US dollars and that it would take 6-8 weeks. And this was for a $13 check.
YMMV, but it sucks.
posted by sperose at 8:25 AM on July 5, 2009

At my bank I deposited an American bank and they just converted it right away and it went through. YMMV. Don't deposit it into an ATM obviously.
posted by stray at 8:32 AM on July 5, 2009

Okay, that made no sense. I'm in Canada, and I deposited a US check and it was easy.
posted by stray at 8:34 AM on July 5, 2009

A lot of it may depend on your bank and the bank in the UK the check is drawn on. Still expect an inflated 'convenience fee', a crappy conversion rate, and an inordinate amount of time to clear. It is as if the check needs to be sent to the UK by and the funds back to the US by ship.

Calling your bank tomorrow will give you the answers you need.
posted by birdherder at 8:50 AM on July 5, 2009

Short answer: It depends on your bank.

My mutual savings bank in Massachusetts charges $50 minimum for foreign check processing, except Canadian checks, for which they charge $2.50. My credit union charges $2.50 for all foreign checks. Obviously, I deposit any foreign checks I receive at the credit union!

You can call your bank if their fee schedule is not listed online. They're legally required to make it available; you can pick up a copy at your branch. You might also double-check; each of my banks lists their fees in a different part of their website. One lists a "foreign item" fee, the other a "foreign check" fee.

Any bankers out there feel like explaining why these fees vary so much? According to FRBServices.org, the Fed processes foreign items through the Atlanta branch, and they charge $11.50 per cash letter plus $15.00 per item. They also note that foreign banks may impose additional charges. That suggests that my credit union is either eating a big loss on foreign checks or that they use some other clearinghouse for them.
posted by brianogilvie at 8:50 AM on July 5, 2009

P.S. the URLs for the Federal Reserve Financial Services fees to which I referred are:

http://www.frbservices.org/operations/foreigncheck/foreign_check_guide.html
http://www.frbservices.org/files/servicefees/xls/check/2009_check_forward_return.xls (Excel spreadsheet)
posted by brianogilvie at 8:53 AM on July 5, 2009

Not only does it depend on the bank, but also your rapport with the bank and who you are dealing with. I used to cash international checks all the time without any hassle besides the exchange rate, and then one day the cashier told me that there was a five business day hold on the check to make sure it didn't bounce... it was from IBM and I made that clear to her and they gave me my money right away.
posted by furtive at 9:14 AM on July 5, 2009

For what it's worth, I do the same thing the other way round (deposit US $ checks in a British £ account). All I had to do was sign something saying that I understood the ramifications (as sperose said above) and now I can deposit them like any other check. I usually have to wait at least two weeks before the money hits the account and I have to remember to "endorse" the check (not something we usually do here) but other than that, no hassles.
posted by wackybrit at 9:47 AM on July 5, 2009

A two minute phone call to your bank's customer service number will resolve this for you. Which bank?
posted by special-k at 10:20 AM on July 5, 2009

Alternatively, you could send the cheque to a UK chum, who can bank it, and then send you the equivalent cash via Paypal. Takes longer but much less in fees.
posted by almostwitty at 2:57 AM on July 6, 2009

ditto furtive. Just last weekend my boyfriend and I went to the bank to deposit a money order that was in US dollars but drawn on a Canadaian bank. At the drive-up window the lady said that it would take 4-6 weeks and there would be a change of $30, or we could come inside and see if the manager had another idea. We drive around, go inside, walk up to the desk, hand the money order to a different teller, she deposits it, hands us a receipt, we leave. I don't know which one was right but he kept the receipt and 2 weeks later, the money is still there.
posted by magnetsphere at 10:02 AM on July 6, 2009

thanks, all. going to stop by the bank tomorrow and ask.
posted by sdn at 3:01 PM on July 6, 2009