Multicurrency accounts

[mjl]

slmkhoo:

Anyone with experience of multicurrency accounts? Specifically, I've heard this is used by parents with a child studying overseas; parent and child sharing a joint account. Presumably, the parent can choose when to covert S$ to foreign currency (depending on exchange rates), and the child can draw on the money from overseas, either online or through ATMs. Have I got this right?


If that's the case, what's the most cost-effective bank to use, with the lowest conversion charges, withdrawal charges, ATM charges etc? GBP is the currency we are interested in.

Thanks for any tips!

It’s not necessary to have a joint account. You can convert $ to £ anytime when exchange rate is good and save £ in multi currency account (mca), and remit to child’s uk account anytime. You may also exchange $ to £ at money changer and deposit £ in mca. Currently, uk remit for DBS should be free, do check it out DBS website.

Withdrawing fr local bank acct at uk cirrus atm would incur some charge. It is better for child to set up uk bank acct, where withdrawal is free from any atm machine (in uk, any bank card can withdraw from any bank’s atm). Btw, which uk uni is your child going?

[sharonkhoo]

mjl:

slmkhoo:

Anyone with experience of multicurrency accounts? Specifically, I've heard this is used by parents with a child studying overseas; parent and child sharing a joint account. Presumably, the parent can choose when to covert S$ to foreign currency (depending on exchange rates), and the child can draw on the money from overseas, either online or through ATMs. Have I got this right?


If that's the case, what's the most cost-effective bank to use, with the lowest conversion charges, withdrawal charges, ATM charges etc? GBP is the currency we are interested in.

Thanks for any tips!

It’s not necessary to have a joint account. You can convert $ to £ anytime when exchange rate is good and save £ in multi currency account (mca), and remit to child’s uk account anytime. You may also exchange $ to £ at money changer and deposit £ in mca. Currently, uk remit for DBS should be free, do check it out DBS website.

Withdrawing fr local bank acct at uk cirrus atm would incur some charge. It is better for child to set up uk bank acct, where withdrawal is free from any atm machine (in uk, any bank card can withdraw from any bank’s atm). Btw, which uk uni is your child going?

Thanks! But sending £ from a Singapore a/c to a UK a/c would likely incur fees? And if the bank (say, HSBC) has a presence in the UK, then the ATM fees will not apply? I was under the impression that avoiding these fees was the reason for the \"joint account\" strategy.

[mjl]

slmkhoo:

Thanks! But sending £ from a Singapore a/c to a UK a/c would likely incur fees? And if the bank (say, HSBC) has a presence in the UK, then the ATM fees will not apply? I was under the impression that avoiding these fees was the reason for the \"joint account\" strategy.

Check this:
https://www.dbs.com.sg/personal/support/bank-overseas-funds-transfer-fees-and-charges.html
Should be free.

Most Singapore students studying in uk set up bank accounts there, it took just a week or so. The HSBC sg-uk account would take months to set up and I heard one needs to deposit $250k. My friend tried to set up HSBC account months before his son went over to uk but eventually still open uk account as the HSBC process took very long. My son is studying in uk and I remitted £ to him using DBS uk remit about 1+ years ago, there was no charge from DBS and from receiving bank.

[Jennifer]

mjl:

slmkhoo:

Thanks! But sending £ from a Singapore a/c to a UK a/c would likely incur fees? And if the bank (say, HSBC) has a presence in the UK, then the ATM fees will not apply? I was under the impression that avoiding these fees was the reason for the \"joint account\" strategy.

Check this:
https://www.dbs.com.sg/personal/support/bank-overseas-funds-transfer-fees-and-charges.html
Should be free.

Most Singapore students studying in uk set up bank accounts there, it took just a week or so. The HSBC sg-uk account would take months to set up and I heard one needs to deposit $250k. My friend tried to set up HSBC account months before his son went over to uk but eventually still open uk account as the HSBC process took very long. My son is studying in uk and I remitted £ to him using DBS uk remit about 1+ years ago, there was no charge from DBS and from receiving bank.

Mjl,

I was looking to set up the HSBC account in Sg for elder boy.
Did not know it requires $250k lockdown and long processing time.

For the child to set up a uk acct when he is in UK, how did your boy settle the daily expenses n hostel charges while waiting for the bank account to be operative?

[sharonkhoo]

Jennifer:

Mjl,


I was looking to set up the HSBC account in Sg for elder boy.
Did not know it requires $250k lockdown and long processing time.

For the child to set up a uk acct when he is in UK, how did your boy settle the daily expenses n hostel charges while waiting for the bank account to be operative?

Did a bit of nosing around and found this about HSBC Premier account:
https://www.hsbc.com.sg/1/PA_ES_Content_Mgmt/content/singapore/hsbcpremier/pdf/trb_booklet.pdf

Seems you have to keep a $200K balance throughout.

[Zeit]

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[Zeit]

Personally, I feel that it's not good to have joint account with parents. I saw a lot of rich Malaysian, HK and Thai Chinese kids with this sort of 'bottomless pit' arrangements, i.e. assumption that mom and dad had a lot of savings in joint account. They had no sense of budget and just withdrew like no tomorrow.


Best to remit 1 lump sum of subsistence allowance by per annum (or per term if your budget is tight), so that you incur 1 time remittance charge only (Oh, but with HSBC premier and DBS MCA, there aren't any charges nowadays). Scholars only receive allowances at certain intervals as well (per semester I think).

The University briefing pack or int'l students affairs office will advise how much to spend per annum. London daily expenses will be higher than say Glasgow, Leeds or Belfast.


Anyway, please read these:

https://www.britishcouncil.sg/sites/default/files/first_steps_final_withfloorpaln_20170722_official.pdf

https://www.bba.org.uk/publication/leaflets/international-students/

https://dollarsandsense.sg/why-frequent-travellers-in-singapore-should-consider-opening-a-dbs-multi-currency-account/


British Council will hold talks for 2018 students sometime in July. Sign up for the talk

[Jennifer]

Zeit:

I think DBS MCA min deposit is lower.


For your son to settle in initially, just give him some pounds to last him for 2 weeks to a month. It really depends how early he arrives prior to matriculation. No different from what you'll bring along when touring in the UK. I'd say 500-1000 pounds should be fairly sufficient to tide him thru till his account is opened? Also give him a supplementary credit card(s) in case he needs to put up at a hotel/airbnb/B&B prior to matriculation. There'll be small little things that require cash on hand, e.g. laundry, books, small appliances like hair dryer, mini rice cooker? lol...There'll be plenty of garage sales initiated by graduating seniors going around on campus.

For hostels, you're usually required to pay 1 month's advance rent before your arrival I think. It's to be returned to you upon checking-out on last day. You can let son pay for the entire academic year to the hostel. But decide first if he wants full board or self-catering. For own private leasing, it's best you fly over earlier to settle contractual / legal matters with local housing agent, and how to make monthly payments to landlord's account.

Like Mjl said, it is better for son to open UK account as Cirrus withdrawls using SG bank ATM card will incur an admin fee. Local bank ATM withdrawals are free.

Once he gets his accommodation address (that will be after matriculation), he can go to the city's or campus' nearest bank to open a STUDENT bank account. There is a stack of documents & passport to bring along to bank. University's briefing pack will tell him what to bring. Within a week or so, he should get the ATM cards, credit (if given), cheque books (if applic) in his hostel mailbox.

:thankyou: for the above.

I am looking at DBS MCA now with link up to its Visa Debit Card; no foreign exchange conversion fee, no additional administrative fee, buys currencies at our preferred rates 24/7.

Better to go to DBS webpage to read up on its Overseas ATM cash withdrawals services charges for non-MCA account:
some countries S$5 per cash withdrawals, some countries S$2 per cash withdrawals, some countries no charge at all.
This is in addition to VISA card administrative & conversion fees.

For DBS MCA, the cash withdrawal in foreign currency from the foreign currency wallets in the MCA incurs S$5 per cash withdrawal, equivalent to 3 sterling pound.

If opens eMCA (online MCA), no need to maintain avg daily balance S$3000 (waiver till 29 yo), no monthly account fee, no chequebook given.

I think it is an option that we can consider; pay for purchases using the DBS Visa debit card in sterling pound, then no need to carry so much cash. Just need to convert existing DBS account into eMCA.
Then to apply for a local UK bank account once all the documents are ready.

[Jennifer]

Zeit:

Please ask your child who wants to go overseas to do own research. E.g. ask seniors from own JC, go to British Council to check, email university student affairs office to check, or alumni association for advice. Then come back to tell you how much he needs and what else you must buy, prepare and produce (financial statements for showing immigration upon arrival). Take ownership of own education. Do your own leg work. We parents are only there to support their endeavours, dreams and ambitions.

Totally agree that the child needs to be in charge of such affairs.

BUT,
1. what if the child does not have any senior whom he has a close relationship to check with?
2. those seniors already in the overseas uni cant remember the details anymore?
3. those seniors had their parents handled every matters and they themselves did not have any inkling what were done then.

I find it quite upsetting that when I ask a question, I get the feeling that someone thinks that elder boy is not independent, not doing his homework. If the matter concerns ah boy, yes, I agree he falls short of my expectation of an independent person.

Zeit, this might not be what you had meant to say in your post.
I could be overly sensitive.

Anyway, I asked because I am planning for my holiday with hubby and prefer to have some information so that I can check out with elder boy what he already knew or still has not gone to find out.