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Longton · Joined: 17 Jul 2006 Posts: 148

Since interest on US$ accounts is very low you could keep your Dirhams in a Dirhams savings account and change them later into $ if you wish. An e-saver account with HSBC pays 5.3% with no minimum balance and upto two withdrawals a month without penalties. The Dirham Dollar exchange rate is fixed so you needn't worry about exchange fluctuations.

Sheikh N Bake · Joined: 26 Apr 2007 Posts: 1307 Location: Dis ting of ours

FatFreddie is correct, at least in my experience. Union National when I was in Dubai 1997-2002 was run exactly like what you'd expect of some third-rate (by local standards) bank in Calcutta. Later when I worked in Abu Dhabi I used the National Bank of AD and while the local customer service girl was the exact opposite of helpful, trying her best to put every obstacle in my way, at least the online banking works well enough for transferring my salary to the US. I don't remember exactly what I was paying in fees, but it was reasonable and the money got to Houston via New York in one or two days. I still keep that accounton the side because it might be convenient for any future travels or work in the region.

johnslat · Posted: Mon Mar 09, 2009 7:16 pm Post subject:

Dear NCTBA,

"I've been living my life as a lie."

Welcome to the human race.

Regards,
John

ckhl · Joined: 20 Aug 2006 Posts: 214 Location: SE Asia

You have no idea what you are talking about. The dirham is pegged to the dollar on an interbank basis, but a bank can change the rate as it pleases to skim money from its retail customers. On top of that any bank will charge you twice as much for a wire transfer as a money changer. Where large sums or frequent transactions are involved you save enough to make it well worth your while to withdraw your dirhams from HSBC, walk down the street to UAE Exchange, and have them do the exchange and transfer to your bank in the USA[/quote]

Absolutely. Or better yet, the Rostamani exchange will give you a bank draft in US dollars for Dhs 10 and the standard rate of exchange. You only have to pay for the airmail stamp. Not once in over ten years has a check gone missing on me in the post. And if it ever does, I can get a stop payment on it. Wiring money from Al Rostamani will set you back Dhs45. Don't forget, however, that your bank in America will skim off a fee from the wire too. This will not happen if you simply deposit a check. How often do you want to send money? Every month. Do the math. You'll reap substantial savings by obtaining a bank draft rather than wiring money.

adorabilly · Joined: 20 May 2006 Posts: 430 Location: Ras Al Khaimah

unless your bank doesn't charge for incoming wire transfers (my US bank, USAA doesn't) so the status account with HSBC (free wire transfer monthly) on the UAE side, to the US side is free, and I can do all of it online.

With that said though, you need to see what your bank in the US charges for money transfers, and determine what is best for you.

johnkg · Joined: 06 Feb 2009 Posts: 127

mccainjohn96 · Joined: 03 Dec 2008 Posts: 93

Some customers with a high salary get a free HSBC status account and free monthly wire transfers, but HSBC still makes money on their rate of exchange.

For all wire transfers, you also have to worry about intermediary bank fees. If the sending bank does not have a "corresponding relationship" with the receiving bank, the transfer has to go through an "intermediary bank," which takes about a $15 fee. You have to ask about this. Nobody will tell you in advance. It just happens, and the sending agent usually couldn't care less.

mishmumkin · Joined: 01 Sep 2007 Posts: 929

FatFreddieFoxx · Joined: 17 Apr 2008 Posts: 24

To quote chkl: "Do the math. You'll reap substantial savings by obtaining a bank draft rather than wiring money."

Well, after half an hour grappling with a calculator, I came up with the answer that the difference between sending home the cash via internet banking and getting a draft was costing me, in one year, more or less, about one day's wages.

So I'll go for the easy option!

Sheikh N Bake · Joined: 26 Apr 2007 Posts: 1307 Location: Dis ting of ours

I don't know. I think I incurred at least $45 in fees from both sides of the pond, including the NY intermediate bank. That's $540 a year.

mccainjohn96 · Joined: 03 Dec 2008 Posts: 93

That's only half the problem. You also have to compare the exchange rates. The money changers will give you a discount for large transfers, and their rates also change a little from day to day, depending on the money supply.

It's also worth considering changing your bank in the states. Choose a bank in the states that has a corresponding relationship with a bank or money changer in the UAE in order to avoid the intermediary fees. And vice versa.

aishaphyllis · Joined: 03 Mar 2009 Posts: 5 Location: USA

WOWIE,
I learned more about banking in UAE than I ever thought I would! You all are great! Thanks for the advice. I can't wait to meet the "friendly" bankers!
Thanks
Phyllis

ckhl · Joined: 20 Aug 2006 Posts: 214 Location: SE Asia

But you have to pay $228 a year for your "Status" account. It is a real misnomer. You get no status. There is almost nothing your $228 gets you than if you were a customer with no status. You can send money home 12 times a year for much less than the $228. The cost of "Status" is not worth it considering the high levels of HSBC incompetence.

Absolutely. And banks do charge more than the standard Dhs3.68=US$1.00. Again, the Rostamani exchange doesn't. If you have a sizeable chunk they may even give a rate that's slightly better within the spread. Bank draft=Dhs10; stamp Dhs 5.50. Do the math.

ckhl · Joined: 20 Aug 2006 Posts: 214 Location: SE Asia

So I'll go for the easy option!

and i assume the easy option is mine. could you elaborate on your internet transfers? Through which bank in the UAE? To which bank in America? Do you pay any annual fees to maintain an account at your UAE bank? Any other hidden fees? Do tell all.