Transferring money by traveller’s cheques

[oxo1947]

I know this --Transferring topic has been done to death, but just a short story.

Live in Thailand long time-- but had to return to UK for a family death, was also left a small legacy £40,000.

Will never be returning to the UK again.

Looking around it would seem to me that the best option on the market at the moment for me is T/C

But maybe I am missing something, I didn't exactly get an A+ in finance at school.

The pro's for me..

I would get it in sterling as I do not have a need for it at the moment, so I can pick whatever time I wish to cash part or all of it.

Maybe the GBP will rise if they have a stable government in 2 months time (after some years here I have given up hope of the baht crashing--but the same equation if it did)

Its the cheapest option---Really I am with the Nat-West bank here but all have much the same policy.

Charges:

• All our currencies and foreign travellers cheques are commission free, only sterling travellers cheques incur 1% commission (min £3, max £50) http://www.natwest.com/personal/travel-international/g1/travellers-cheques/general-tcs.ashx

Max £50 that's 0.00125% , everywhere I have looked in Thailand they seem to pay the top rate when dealing with T/C

& as I say I can pick my times to cash in some or all---------I understand you must declare money coming into the country, but you are welcome to bring it in.

So what is it I am missing here if everyone else prefers to TT...?? & where is that Klingon guy when I need him....??

[phetphet]

I have always used T/C's as a back up.Normally Amex UK sterling ones.

However, recently the Thai banks have increased their charges for cashing each traveller's cheque to THB150+3 tax. So if you had £1,000 in £100's, that would be THB1,153 encashment fees.

Also, I have recently found that it takes a long time, sometimes over an hour for the bank to do security checks, contacting Amex etc, before they will cash them.

I have found that Siam Commercial Bank will only cash £600/day.

Also, I have been told that the banks are looking to phase T/C's out, but if you did decide to go with them, try and get the biggest denominations that you can, currently £200.

What you could do is get a FairFX sterling pre-pay credit card, and top it up to its maximum £5,000, which you can then use to withdraw money at ATM's.

Hope this helps.

I'm sure others will offer better ways to bring your money. Traveller's cheques just don't seem to be such a great deal anymore.

[Rooo]

Moved to banking.

[oxo1947]

Thanks for that phetphet---your right the banks certainly do discourage you on the T/C, they prefer you take their top up card etc which then gives you their exchange rate, & your also right that they are trying to phase them out---obviously not enough profit for them in it.

Also if you are cashing them into an account and not wanting to just walk away with cash then there is no limit.

Thanks.

sorry mods--I didn't see a banking forum

[mogandave]

They always seemed like a PITA to me. Then the per check charge is high.

$1,000 TCs are available in the US if you order in advance. Free if you have a decent account.

Anymore, I usually just carry banknotes.

[Pib]

OP,

You do not get the TT Buying Rate for travelers cheques; you get the travelers cheque/sight bill rate which is approx 0.25% lower than the TT Buying Rate.

Plus you have the Thai bank travelers cheque cashing fee of Bt153 per cheque (Thai bank fee of Bt150 plus Govt Bt3 stamp duty)...it use to be Bt33 per cheque but Thai banks raised it to Bt153 about a year ago which is a little over 3 pounds per cheque.

On a 100 pound cheque that amounts to 3% of its value plus 0.25% (lower exchange rate effect) totaling 3.25% in direct/indirect fees on the Thai bank end plus 50 pounds on the UK bank end for issue of the checks which takes a 1,350 pound bite out of your 40,000 pounds. On a 500 pound cheque that amounts to 0.6% plus 0.25% totaling 0.85% in fees on the Thai bank end plus 50 pounds on the UK end which takes a 390 pound bite out of your 40,000 pounds. Those big bites makes banksters fat.

Disregarding the hope of the pound appreciating against the baht (but it's nice to hope), seems paying a one time funds transfer/SWIFT fee in the 20 pounds ball park (and be sure to send GBP...don't let the UK bank convert the funds or they'll screw you on the exchange rate...let the Thai bank convert the funds using their TT Buying Rate) would be your cheapest option and put the most baht in your pocket.

Basically you would just have that approx 20 pound transfer fee (approx 0.05% of the 40,000 pounds) plus the Thai bank receiving/conversion fee of 0.25% (Bt200 min, Bt500 max) fee which would amount to Bt500 (aprox 10 pounds) for a total of 30 pounds in fees. 30 pounds being left in the banksters' pocket of you money is sure better than 1,350 pounds or 390 pounds being left in the banksters' pockets.

Or, to have some more control over when you convert the funds from GBP to baht in hopes of the exchange rate improving I guess you could open a foreign currency GBP bank account at a Thai bank, but you'll still have the UK to Thailand transfer fee and have some foreign currency account fees/minimum values to watch out for although you do get the TT Buying Rate with no conversion fee when converting GBP to baht.

Yea, while travelers cheques are good for safety purposes they are not a good deal when needing to convert into another currency due to exchange rate and fees... and of course you probably also have fees associated with the issuing of the cheques. Since you said you live in Thailand and have no plans to return to the UK which sounds like you'll be sending that 40,000 pounds in Thailand, I think I would just electronically transfer it over to your Thai bank account and not make the banksters any fatter by allowing them to feast on travelers cheques exchange rates/fees. Then after you get it into your regular savings account, invest all or part of it in a Thai bank "fixed/hybrid" savings account paying around 2 to 3% versus the 0.5% currency being paid for regular savings accounts.

P.S. Sorry to hear about the family death...that's never a good thing but it's all part of life.

Edited March 9, 2015 by Pib

[Soutpeel]

Whats a travelers cheque

is it like an ATM card ?

[Pib]

What's a travelers cheque? It now a bankster's lunch (and maybe dinner also) ticket.

[oxo1947]

Wow Pib....... I take it you did get an A+ in school economics,

Thanks for braking it all down for me,

I guess things are never quite as simple as they first look to be ..........................

[oxo1947]

They always seemed like a PITA to me. Then the per check charge is high.

$1,000 TCs are available in the US if you order in advance. Free if you have a decent account.

Anymore, I usually just carry banknotes.

Yer like most people Dave , I usually just wander in & out of Thailand without a 2nd glance, but it would be Sod's law that the one time I am carrying cash would be the time they decide to have a look. I hate declare & to show them cash $$$$ that they may find a reason to hold on to for further reference, or some such B/S then get sticky fingers while counting it for the 105th time or whatever.

.

Not that I would ever suggest that 99.9999% of our government officials are not anything, but completely honest & upright citizens ...................

[oxo1947]

Whats a travelers cheque

is it like an ATM card ?

Wow Soutpeel, your really making me feel quite the old Fart ....you must be a child of the ATM generation, ----Never had to stand in line for an hour in a bank queue to withdraw £10...............................Lucky you.

[mogandave]

I guess I misse the $60K part, I would not want to carry that much, $9,900 is about my limit.

I'ts been a few years, but the last US bank check I cashed here only costed (I think) THB100 in fees, but it did take about 45 days to clear.

[Soutpeel]

I guess I misse the $60K part, I would not want to carry that much, $9,900 is about my limit.

I'ts been a few years, but the last US bank check I cashed here only costed (I think) THB100 in fees, but it did take about 45 days to clear.

the topic is travelers cheques not personal cheques..

[mogandave]

I guess I misse the $60K part, I would not want to carry that much, $9,900 is about my limit.

I'ts been a few years, but the last US bank check I cashed here only costed (I think) THB100 in fees, but it did take about 45 days to clear.

the topic is travelers cheques not personal cheques..

I understand that, ergo, my previous response.

That said, while I have deposited personal checks here drawn on my US account, in this case I was referring to a bank check, not a personal check.

Thanks for your input all the same.

[CFC]

The increase in charges to 153 Baht from 33 Baht, ruined the exchange rate you get with T/C'S. T/C'S are good for back up. I would send the 40K by bank in sterling and get the TT Rate.