Exchange Rates
For a useful currency exchange calculator, go to Bloomberg.com.
Banks
In addition to the larger nation-wide banks (eg Bank of America, Citibank), there are many relatively small, state and local banks competing for your business in the U.S. These banks often have relatively few branches and may not be conveniently located for both home and office, but it is easy in the U.S. to move from one bank to another so your first choice does not have to be your last.
Some employers have special arrangements with a particular bank or credit union, and you should certainly use these where they are available. Failing that, ask yourself the following questions when deciding which bank to use:
• Does this bank have branches overseas, and is it familiar with making international transactions?
• Does this bank have branches or its own Automatic Teller Machines (ATMs) convenient to both my home and my office? Using other banks’ ATM’s can be expensive. You can look up exact ATM locations by bank at the Visa/ATM web site or MasterCard web site or American Express web site.
For a bewilderingly huge list of web sites of banks throughout the US, try the Community Banker site.
It is a good idea to open a bank account as soon after arrival as possible. When you sign the lease on your new home, you will usually be asked to pay your deposit with a local certified bank check – not a credit card or cash. Most Americans maintain a “checking” account (equivalent to a “current” account in the U.K.) from which day-to-day payments will be made, and it is mechanically simple to open one: You will need a good ID document (a passport will do until you have your Social Security number), a mailing address and some cash (or check or credit card) with which to make an initial deposit. It is also important to have a letter of appointment/offer letter from your employer indicating your salary level and duration of appointment.
These days, a Social Security number is also often required. Some banks will open an account for you without one, but will ask you to complete an IRS form W-8 in lieu. This essentially says that if you fail to inform the bank of your Social Security number within a certain time period, the bank is obliged to freeze a proportion of your account against future tax liability.
Please also note: If you intend to draw on your deposit soon, you should deposit with readily negotiable, i.e. cashable funds. Checks drawn on foreign banks can take up to three weeks to clear.
You may be used to paying many of your bills directly by standing instruction to your bank (“standing order” in the UK). Known as “direct debits” in the U.S., this is not as common a practice. For the most part, you will have to sit down each month and write checks for your utility bills, etc. An increasing number of banks do however now offer on-line banking services for a fee. However, almost all banks do now offer and even prefer on-line banking and do not charge a separate fee for this.
You should be aware that foreigners with a lifetime of good credit in their home countries usually cannot immediately expect to be granted a US credit card, because they will have no record of a credit history in the US. In these circumstances, you should consider the following:
• Home-based Credit Cards: Keep your home-based credit cards active, at least for the first few months of your assignment here.
• American Express Personal Account: If you have had an American Express personal account in your home country for at least six months, do not cancel it. There is a process for transferring your account to a dollar account once you arrive in the US, and thus effectively gaining a credit history in the US. Your Full Circle consultant will be able to explain the procedures you must follow AFTER you have arrived.
• Letter of Credit Reference: Contact your home bank, the issuers of your credit cards, and any other significant lenders of money to you and ask that they issue letters of credit reference in English on your behalf.
• Retail Credit: Once in the US, look into the possibility of getting gasoline company and/or Department Store credit cards. In the past these have been quite easy to get if you have a Social Security number and a bank account, but the companies have been tightening up in recent times. Your Full Circle consultant should be able to advise. Then make sure to use these cards liberally and to pay on time every time for six months. After that you should be able to apply for a US credit card.
• Secured Bank Credit Card: Another option is to obtain a secured bank credit card. Your Full Circle consultant can explain how this works after you arrive
A number of problems mentioned above can be eased by signing up for special banking programs offered either through your employer or through Full Circle. Full Circle, for example, has made arrangements to work with HSBC and Citibank. Typically, special banking programs allow international transferees to set up US banking arrangements in advance of arrival and an account can be opened before the issue of a US Social Security number. They will also usually also allow a transferee to begin their time in the US with a US credit card, since, unlike most main-street US banks, the special programs will take into account a credit history in the country of origin (see below). If your own company does not offer programs of this kind, and you have an interest in those offered through Full Circle, please tell your Full Circle consultant who will send you information, and we will arrange for your chosen bank to start their application process directly with you.
The special banking programs will be primarily on-line and the personal banker assigned to you will probably not be located in your destination city. For this reason, you might want to consider opening a second account with a local bank, if only for the convenience of being able to withdraw cash from ATMs without paying a fee.