Job Discussion Forums

KateCee · Joined: 15 Sep 2003 Posts: 72 Location: China....no more.

Hi,

The following are questions for a friend who will be working on the Mainland soon.

1. What are the bank charges for transfers? Figures, please. (I don't have any of my own papers now to check for the same.)

2. He's heard of a 5K USD cap/transfer. I hadn't. Anyone hear/experience something like that?

3. When searching through just now, someone mentioned the interest on the savings account at the BoC being taxed. Does HSBC do the same? My friend has an existing HSBC account.

4. Another "minor" detail I can't remember. What percentage are the tax deductions?

Thank you.
Kate

eddy-cool · Joined: 06 Jul 2008 Posts: 1008

No answer to your questions but one observation:

If a bank deducts 'taxes' from your savings or transfers then any other bank will have to do that too - otherwise it would not be a proper 'tax', would it?

Just so you know: It won't be easy to open a new bank account with HSBC in China.

YankeeDoodleDandy · Posted: Sun Feb 01, 2009 4:29 am Post subject: Banking

With HSBC in Xian, they told me that the minimum balance to open up an account with them was 100,000 RMB. I told them that I would see them in a few years. I have sent money to the US via Western Union at China Post. There is a $ 15.00 dollar fee to send a maximum of $ 450.00. My sister lives in a small town in AZ.

China.Pete · Joined: 27 Apr 2006 Posts: 547

"1. What are the bank charges for transfers? Figures, please." -- Kate C

Such charges will vary somewhat, but generally speaking should not exceed about $15 per transaction for any amount. If it's much more, you need to look for another bank. The receiving bank may also sometimes impose a small charge, say $5.

"2. He's heard of a 5K USD cap/transfer. I hadn't. Anyone hear/experience something like that?" -- Kate C

I seriously doubt it. But if you wire more than $10,000, a U.S. bank is obliged to report this to the government.

"3. When searching through just now, someone mentioned the interest on the savings account at the BoC being taxed. Does HSBC do the same?" -- Kate C

All interest bearing accounts in China are taxed. In China, the deduction is made upon payment into your account. Someone else can probably tell you the exact percentage, which should coincide with the tax on capital gains. In any event, the interest paid on deposits in China has always been so low that none of this much matters. Any real gains come from Chinese currency appreciation versus the U.S. dollar or other currency.

(Have to agree with a previous poster that HSBC in China, or Standard Chartered for that matter, is not very interested in doing any retail banking business, and will therefore do everything they can think of to get rid of you. You're far better off just going with a Chinese bank, something you'll need to do for purposes of receiving your monthly salary anyway.)

mike w · Posted: Sun Feb 01, 2009 10:10 am Post subject:

I transfer US dollars regularly to my bank in the UK.

I have tried Bank Of China and ICBC - both are next to useless, slow, and expensive.

I know use Shanghai Pudong Development Bank - quick, relatively easy, and a flat rate charge of 130RMB per transaction (max I've done up to now is $3,000, so I don't know about any upper limit).

KateCee · Joined: 15 Sep 2003 Posts: 72 Location: China....no more.

Eddy, Yankee, Pete & Mike, thanks very much for your input. Each of you has given important info which will help my friend piece together The Great Puzzle i.e. life behind the Great Wall. My friend will undoubtedly be grateful when I send him your replies. Thank You on his behalf, too.

Grab that beast of burden by the horns ....oh, clich�s are pass�? Anyway, have yourselves a Happy Year of the Ox!

Kate

PS: Hi Eddy, I'm no Slumdog here, & am even further away from being a Millionaire, but am enjoying myself nevertheless in the other billion strong nation.

motown · Joined: 07 Jun 2008 Posts: 68

Just an FYI.
I'm new in China and I haven't saved anything yet but when I talked to other ESL teachers they all had problems when transferring with the Bank of China. Money was lost and they are trying to trace it.
They've all since used Western Union and have sent money back to Canada without any problems. That being said the first time I do transfer some funds it will be a small test amount.
I believe they give you a code and you email it to the person on the other end and they show up with two pieces of ID (with photo) and pick up your funds. Basically what was stated earlier in this thread.

eddy-cool · Joined: 06 Jul 2008 Posts: 1008

Ah, KateC, I see... I remember. Best wishes and stay in touch!

Eddy

IT2006 · Posted: Fri Feb 06, 2009 3:33 pm Post subject:

I never had a problem with the Bank of China. I always had a rep from the FAO help me with the transaction.

If you send money to the U.S. BE SURE to use your bank's routing number where the transfer paper asks for a SWIFT number.

It also helps if you supply the name of your bank in the U.S. as well as your bank account number.