Non-Resident UK Bank for Large Transfers to US Bank - Wise?

August 25, 2023 5:05 AM

I live in the US but am currently (until Sunday) in the UK. Yesterday I met with my father's solicitor to discuss his estate and inheritance, and was advised that I'd need a UK bank account to receive inheritance funds. I haven't lived here for 20 years so setting up a new account is going to be a huge pain, so I'm wondering if providing my Wise UK account details is, well, wise, and if using Wise to receive and transfer potentially large sums (maybe 6 figures?) to my US bank is a good strategy?

A few additional notes:
1. The solicitor said I don't technically need a UK account: they can make a transfer direct to a US bank, but if we go that route, I won't have control over when the transfer will be made - i.e. I can't sit back and wait for a better exchange rate.
2. Although I have a Wise account, I've never used it, so I don't have any experience with them: I set it up for when I was a student abroad, but Capital One's lack of foreign transaction fees was a better deal so I never used it.

posted by 7 Minutes of Madness to Work & Money (7 answers total)

I don't see any reason not to use Wise. I think their transfer limit is 5 Million GBP.

I use Wise to transfer money out of a US brokerage (which only accepts US banks) directly into my Wise account and then convert it to Euros and transfer it into my European account.

As you know, the bank details they give you in each currency to support transfers looks like any other bank because it is an actual bank they are using.
posted by vacapinta at 5:15 AM on August 25, 2023 [1 favorite]

It sounds like the issue is more about getting the best exchange rate/minimizing fees rather than what is legally possible? I would suspect that transferring a six figure amount across international borders would also trigger reporting requirements designed to prevent money laundering. It’s possible the paperwork would be less hassle on that end with an actual bank? (Of course, that maybe cancelled out by the hassle of opening a bank account in the first place.) I haven’t ever received that much money in a country where I am not resident and don’t have a bank account, but was able through a combination of online banking and atms on the same general network to meet all of my banking needs without setting up a local bank account. (Two different countries involved, though, in addition to at least an order of magnitude smaller amounts.)
posted by eviemath at 5:16 AM on August 25, 2023 [1 favorite]

If you are dealing with large sums USA/UK I can say that HSBC will make it very easy for you as long as you deposit a high enough balance (5 figures) to qualify for Premiere. That includes opening linked UK and USA accounts while physically in the USA, if you need to, with minimal hassle.
posted by Rhedyn at 5:37 AM on August 25, 2023 [1 favorite]

I have no experience with Wise, but another option might be to open a foreign currency account with a US bank, make the transfer in GBP, and then convert to USD at your leisure. I say "might" because I'm not sure how common foreign currency accounts are in the US and what associated fees/headaches there might be.
posted by trig at 6:37 AM on August 25, 2023 [1 favorite]

I can't sit back and wait for a better exchange rate.

This matters only if you think you can predict changes in exchange rates in a meaningful way, and you predict that the pound will become stronger. The futures market predicts only very trivial changes in the rate (e.g., up 0.02 percent next month, then down 0.08 percent in October), so I'd focus on minimizing complexity and fees.
posted by Mr.Know-it-some at 6:49 AM on August 25, 2023 [9 favorites]

My wife and I used Wise to receive the proceeds from an inheritance in Germany. It worked just fine and we actually kept some of the funds in Euro in case we're travelling over there and need cash.

Just remember that if you hold any funds over $10,000 overseas you will need to file paperwork with the government at tax time via the FinCen/FBAR and Form 8938. Not that anyone at the IRS seems to actually look at it, but if you ever get audited or whatever this will cover your butt. Moving amounts >$10K in and out of the US also triggers PATRIOT Act paperwork.

And Mr.Know-it-some has it right: you can't time the foreign-exchange market. Just move the funds with whomever can get you the rate closest to spot and with the lowest fees. Wise is really good in that regard.

If you want to long-term invest in the UKP and hope that, say, there's a British economic recovery in the next decade then by all means let it sit and use it as a hedge against the USD.
posted by JoeZydeco at 7:47 AM on August 25, 2023

In my experience, even for significant amounts, the stress of trying to play Exchange Rate Roulette and win is not worth it, regardless of how much 'it' is.
posted by DarlingBri at 12:59 PM on August 25, 2023