gordylad Posted June 17, 2013 #1 Share Posted June 17, 2013 We are using a US T/A for the second time however our balance is not due until Aug 14. With the $ being quite favourable just now is there any way to start putting them aside leading up to next year? Thanks Link to comment Share on other sites More sharing options...
sleepybert Posted June 17, 2013 #2 Share Posted June 17, 2013 Off the top of my head, 2 options: 1) US dollar bank account (not sure how hard that is to do in the UK, even in Canada there is alot of extra paperwork involved). 2) Purchase US dollars and keep them somewhere safe. This is usually what I end up doing when the rate is good. Link to comment Share on other sites More sharing options...
cruiser87654321 Posted June 17, 2013 #3 Share Posted June 17, 2013 How would holding US dollars in cash facilitate a payment? Unless done by bank transfer for which a fee would apply. Surely, using a CC card with a good exchange rate is the way forward? Link to comment Share on other sites More sharing options...
snyniew Posted June 17, 2013 #4 Share Posted June 17, 2013 Do you have a brokerage account? Not sure what they would be called in the UK (account where you buys stocks & bonds) your financial advisor (again not sure the UK term) should be able to purchase US dollars and hold them in your account. I work for a large brokerage firm here in the US and we purchase Euros, Pesos, British Pounds, etc for our clients when they need to wire funds. We are usually able to get a better exchange rate for them so they like having it for when they travel or have to pay things to other countries. Link to comment Share on other sites More sharing options...
RickT Posted June 17, 2013 #5 Share Posted June 17, 2013 I have similar issues in that I live in Canada and book with a US TA. I have a cruise booked for March and the exchange rate is very good right now. I may forgo some interest income and simply pay for the cruise in full now. Given that I have to pay the TA using my credit card there doesn't seem to be any decent way of putting money away today (in US currency) to then pay via credit card even is I get a US currency credit card. The balance due is only $3,000 so even at a decent return of 6% it's only going to cost me $180 which is probably less than I will lose if the exchange rate changes. Link to comment Share on other sites More sharing options...
iancal Posted June 17, 2013 #6 Share Posted June 17, 2013 We live in Canada. We travel to the US often and we purchase most of our cruises from an on-line US TA. We find that we save a fair amount of money by maintaining a US funds bank account and a US dollar Visa. Both were very simple to set up-just a matter of opening the account at our branch in Canada. As I recall, it took all of ten minutes to complete. We also get cheques from time to time in US funds. Rather than converting, and paying exchange, we deposit them in our US dollar account and use the money for travel. Since you are in the UK, you may want to see if HSBC UK offers any USD accounts or USD Visa cards. As an example, last year we spent about $12000 in the US. It went through our USD Visa card and paid by our USD bank. Had we used our CAD Visa, the extra exchange and service costs would have been quite high-well in excess of the annual $30. fee that we pay for the USD Visa card. From time to time, we do by USD and deposit them in our USD account. We do not buy them at the bank. It is less expensive for us to buy them at a currency exchange office. We realize a savings of about $150. over what our bank offers on a $5000 currency transaction. All grist for the mill. We typically buy when CAD is strong. Last purchase was .97 for a USD, or thereabouts. Good luck. It all adds up! Link to comment Share on other sites More sharing options...
SusieV Posted June 17, 2013 #7 Share Posted June 17, 2013 I just make payments when the exchange rate looks good. Very simple. Link to comment Share on other sites More sharing options...
Project_gal Posted June 18, 2013 #8 Share Posted June 18, 2013 I would suggest that there are only two ways of doing this: Pay when you think the exchange rate is favourable. There are companies, such as Travelex, allow you to purchase FX in advance at a guaranteed rate. This is really designed for such purchase as a holiday home overseas when there could be a variation in exchange rate during the time it takes for the legal formalities to be carried out. Unless you are spending a lot on your cruise, this is probably not a practical option. Buying cash does not appear to be a practical option because, even if you could pay the final bill in cash [very unlikely], you are likely to get a better FX rate on your credit card. Of course, second guessing when the exchange rate is good is not easy. It is currently as good as it has been in the past 4 months but bad compared to what it was 7-9 months ago. Unless you are booking "last minute" when it would be sensible to pay in full when you book, you are taking a big chance booking in dollars. Sue Sue Link to comment Share on other sites More sharing options...
Rare uktog Posted June 18, 2013 #9 Share Posted June 18, 2013 And sadly now this morning south it goes again Guessing the rates is a stressful activity! Link to comment Share on other sites More sharing options...
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