Foreign Currency - Opening a Bank Account Abroad

A common alternative to opening a foreign currency account operated by a UK bank is to open a bank account in the country you will be trading in. Whether you are buying property abroad or emmigrating you will need an account to transfer your funds to.

Before initiating a foreign currency transfer your funds will be held in a local currency; you can wait for the exchange rate to become more favourable or you can convert based on the rate on the day. A bank in the country with which you're trading will also be fully conversant with the rules and regulations regarding transactions in that country as opposed to a foreign bank governed by foreign rules and regulations.

One of the limitations about investing abroad is that people often prefer to deal with a bank in their own country and in their own language where they are confident in the knowledge that their funds are secure and easliy available. There are naturally a number of factors to consider when looking for a banking provider overseas.

You may experience communication difficulties when trying to move funds from abroad which wouldn't be the case with a foreign currency account in the UK. Depending on the country in question, there may be complex rules governing who is entitled to open and operate a bank account. Procedures to stop money laundering may mean that setting up such an account is a long-winded process requiring many stages of legal and administrative clearance.

Consider choosing an international bank capable of dealing with international clients. Most major banks abroad have the ability to operate multi-currency accounts offering a host of flexible features allowing customers the ability to conveniently manage their money wherever they are in the world.

When moving money you will need to open a foreign bank account to receive your funds. As a non-resident it is crucial to consider a banking facility or banking provider that will allow you easy access to your savings and investments. A number of UK high street banks have networks abroad like Halifax and HSBC which could be useful if you are planning on still keeping funds in the UK and won't leave you high and dry if you need funds transferred in a hurry.

An alternative option is to open an account with one of the growing number of online only banks. With fewer overheads these online providers can afford to be more competitive often offering higher returns on investments as well as cheaper transfer costs. With an online facility you can access your money or check your statements via the internet from anywhere in the world.

Using a foreign exchange company can easily save you hundreds or even thousands of pounds when compared to using a bank in your home country. It is just as important when transferring funds to an overseas bank account to ensure that you have the correct payment instructions to receive your transfer quickly and efficiently.

International Bank Account Numbers are being introduced to standardise the identification of bank accounts. The IBAN is not a new account number. Your existing bank code and account numbers will not be replaced, but additional characters will appear in front of them. The complete identifier will be known as the IBAN. Your appointed overseas bank will provide you with an IBAN number if you are likely to receive payments from abroad. IBANs are derived from your existing domestic account number and must be used when instructing your bank or broker to remit funds to your overseas bank account.

The SWIFT (Society for World-wide Interbank Financial Telecommunications) system is a computer-based message switching system used by most international Banks as a method of making overseas payments and transfers. The minimum information that is required to make a SWIFT transfer is the account number, the name and address of the receiving Bank and the name of the beneficiary. In addition to IBAN numbers all Banks will have a SWIFT code and if this is known should be used by your bank or broker when remitting funds to your international account.

Speaking to a company that is familiar with overseas banking proceedures and specialises in overseas transfers could save you valuable time and money. It is important to consider that more is often lost through indecision than a poor one.