how to save on fees when moving money out of country
I am moving to France in a few weeks. I will be moving my savngs from my U.S. bank checking account to a French bank soon. Is there a way to exchange US Dollars into Euros with less fees than banks would charge?
Terry Says
If you're talking about large sums, you should use a direct bank-to-bank wire transfer. That means you must set up a bank account in France, and have the account and bank routing numbers available to your U.S. Bank. When you open the account in France, you should ask about the cost of an incoming wire transfer, and the availability of the funds. You will also be paying the "spread" on the currency conversion rate. If you are transferring a large sum of money (over $100,000), you should ask them about the "spread" and about any additional fees or charges. But really, you are at their mercy for the currency conversion rate they give you! For smaller amounts of money, you can always use your debit card to withdraw cash in Euros. But ask your home bank if there are fees and how they convert the currency. Check at Bankrate.com to find cards that don't charge fees for purchases in a foreign currency. Again, the danger is in the actual conversion rate they use! And remember, you will be required to file a form each year declaring your foreign bank account, when you file you There are so many other issues you must consider. If you are working there you need to understand your tax situation. Here's a link to a starting place for info on the IRS website.
