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This bank account thing... does it work in reverse?
I know more than NOTHING about international banking or finances in general.
If I were to open a bank account in Ireland how would that work? I mean, I'd still have to use US dollars to fund that account and that would keep me subject to the low rates? (Dollar agains the Euro I mean).
I can`t see why that can`t be done Tink, although remember that you would have the option in the UK [as opposed to S. Ireland] as to whether to have a GBP or Euro account. [As you know the currency in S. ireland was the punt, not the GBP].Quote:
Originally Posted by Tink
Once you have "spent" your $$$`s and "bought" foreign currency by opening the account with your $$$`s then you wouldn`t have any currency exchange fluctuations to worry about.
Yes, the Republic of Ireland used the punt. They had just switched to the Euro when we were there last.
So, if I were to do something like that, I'd still be subject to the exchange rate at the time I used my dollar to purchase Euro to deposit in the Irish bank? :unsure:
Sorry for being such a dunce, but I'm still not seeing a huge draw for this? :unsure:
Yes Tink you are correct. Basically you open the account with $$$`s and they would be converted to Euros [or GBP`s in the UK] at the prevailing rate at the time.Quote:
Originally Posted by Tink
Sadly for you, with the dollar being weak compared with the GBP at the moment, you wouldn`t really benefit...ie you wouldn`t buy as many £££`s as if the exchange rate was say £1 = $1.5.
Where us Brits score is that with the exchange rate being favourable to us at present, our £££`s buy a lot more $$$`s than they did a few years ago. Hence in our case when we have $$$`s lodged in our US bank account [which we bought when £1 = $1.9 [or thereabouts], we now have those dollars so irrespective of the exchange rate, we can now spend them in the US without worrying about the fluctuations in the rate of exchange.
Hope this makes sense.
Yes. :yes: I think I've got it! So, for me to have the same or similar benefit, I have to actually wait for the exchange rate to fall (making the dollar stronger in relationship to the pound sterling or the Euro).
So, can Americans open bank accounts in the UK or Republic of Ireland? :unsure: What about tax on interest and all that stuff?
By jove you`ve got it Tink! :p015:Quote:
Originally Posted by Tink
I can`t see any reason at all why anyone from the US can`t open an account over here.
As for the tax issues, well every year I give my accountant all the info. regarding rental income from the house [this ain`t very much seeing as we only let close friends and family stay there!], expenses on the house [utilities, management etc. etc.] together with any interest earned on the bank account, along with any other relevant info. and he then sorts things out for me.
Apparently the US and the UK have a reciprocal arrangement regarding tax. ie you don`t pay income tax twice [for the US and the UK]. Every year my US accountant also submits the above info. to the IRS and I then pay tax over there on the monies earned in the US.
I`m not sure how the technicalities work exactly but I hope that both my US and UK accountants know what they are doing! :p015:
Thanks Slowhand! Good info to have. Something to ponder. :yes: