What to do with USD cheques?

Trojan

Hi all, I'm looking for some advice on the best long term way to deal with a couple of US Dollar cheques I'll be receiving.

Situation: in 2 batches, I sold off a couple of hundred shares worth 3 figures ($) - I wanted to cash them in because a) the cash would be handy and b) I don't see them rising a whole lot any time soon but they could very easily drop.

I'll be receiving the cash as a cheque drawn on a US Bank, in my name. My bank (Ulster) told me that to cash this, they would have to send it back to the US for verification after I give it to them, the process usually taking 5-6 weeks.

Given the time delay, the appalling state of the USD vs Euro today, and the fact that I'm not desperate for the cash, I'm wondering if there's anything more useful I can do with this.

Thinking along the lines of opening a USD account (where?), reinvesting the USD directly into shares (possible?).

I'm not a very clever financially, so has anyone got advice for me?

Cheers,
Al.

Blackjack

5-6 weeks sounds excessively long. Have you checked ou the other banks?. If it's a decent amount (over a thousand) I would ask the manager if he can sort this out a bit quicker. He can and he should, but whether he will or not is another story.

The_Bullman

Due to the Patriot Act, setting up an american bank account is a fairly lengthly process.

I was over there for the summer on the J1 visa and the bank was hesitant about even setting up an account for me. Basically they told me that it could take up to a month to get going. I ended up just cashing my pay cheques.

I doubt that non-residents can setup accounts anymore-but I can't be sure of this

Trojan

I'll have a word with the bank and see if they can do that.

I was talking about a USD account over here. I know that in Switzerland and a lot of other European countries it's possible to have different accounts for each currency - CHF, USD, EUR, etc. Anyone know if any Irish bank does this?

Thanks for the replies, any further information would be much appreciated.

antoinolachtnai

Forget about a USD account. I wouldn't think they'd do it for that level of business. The best thing is to get the money wire-transferred to you.

De Rebel

Over the last 2 years I have had a number of US$ cheques, payable in my name. I have walked into Ulster Bank branches (3 different branches in fact) and lodged these to my Dual Account. I have had full value in my account in 2/3 days.

Trojan

I'm getting cheques, if the possibility to have it wired was available I wouldn't have started this thread

Ok, I'll try that in Ulster & see what happens.

Thanks for the replies guys,
Al.

BuffyBot

Ok, I'll try that in Ulster & see what happens.

Also, the person you spoke to may have been giving you a "worst case scenario" deal. It may not take all the long to go through

Captain Trips

Trojan wrote:

Given the time delay, the appalling state of the USD vs Euro today, and the fact that I'm not desperate for the cash, I'm wondering if there's anything more useful I can do with this.


Cheers,
Al.

I had no probs with a check for $750 a few months back, cashed through my own Irish account. It took around 5 days I think, and part of that was sending the check to my branch.

pete

i lodge mine straight into my BOI account... or rather, the wife does. at the foreign exchange desk, i believe.

RicardoSmith

I lodge mine direct to bank. Can you not out them into paypal and then transfer them out? Just a thought. Probably a bad idea.

nlgbbbblth

De Rebel wrote:

Over the last 2 years I have had a number of US$ cheques, payable in my name. I have walked into Ulster Bank branches (3 different branches in fact) and lodged these to my Dual Account. I have had full value in my account in 2/3 days.

Bank will do 2 things

a) send cheque for collection i.e. post it to US Bank requesting a bank draft/bankers payment/electronic transfer for the funds. This can take a number of weeks and you will be credited when the Bank gets payment

b) lodge the cheque to your account which means you get value within 1 day, while the cheque goes through the Bank's international department and through the natural clearing cycle with the US Bank. If the US Bank decide not to pay it then its bounced back to Ireland and you will be debited back. This can take a number of weeks.

option b) is generally used for small amounts/regular and reliable customers.
While cheque is cleared for value and you can draw against it, it is not cleared for fate and you can be debited back a few weeks later if the US Bank returns it unpaid.

nlgbbbblth

nlgbbbblth wrote:

Bank will do 2 things

a) send cheque for collection i.e. post it to US Bank requesting a bank draft/bankers payment/electronic transfer for the funds. This can take a number of weeks and you will be credited when the Bank gets payment

b) lodge the cheque to your account which means you get value within 1 day, while the cheque goes through the Bank's international department and through the natural clearing cycle with the US Bank. If the US Bank decide not to pay it then its bounced back to Ireland and you will be debited back. This can take a number of weeks.

option b) is generally used for small amounts/regular and reliable customers.
While cheque is cleared for value and you can draw against it, it is not cleared for fate and you can be debited back a few weeks later if the US Bank returns it unpaid.

actually the same applies really for any cheque

say you bank with UB and you lodge AIB/non UB cheque on a Monday

Monday - cheque lodged. Funds cannot be drawn
Tuesday - cheque goes through Clearing. Funds cannot be drawn
Wednesday - funds cleared for value and can be drawn. cheque arrives at AIB
Thursday - a) cheque is either paid or b) returned unpaid by AIB via post
Friday - if b) then cheque is received back by UB and is debited from your account,
depending on the postal system this may not happen til the following Monday or even Tuesday

so guys a cheque cleared for value is not the same as one cleared for fate

to be fully sure you need to wait about a week.
while 99.5% of cheques are honoured the Banks generally give the customers the benefit of the doubt - hence they get value when the Bank gets value