Depositing Foreign Currency Cash Notes into Taiwan Bank Account

Business Money
1

Hi All Forumosans,

Will be moving to Taiwan soon for a short work stint and would like to inquire any knowledgeable Taiwan vets on the issue of depositing/withdrawing foreign currency to/from personal bank accounts in Taiwan

I have been told that most, if not all, Taiwan banks charge a small fee if you wish to deposit foreign currency notes - USD/Euro/JPY etc - into a personal account

After inquiring with a few banks, I found that the approximate rate would be around 1500NT ($50USD) for a deposit of $10K USD :astonished:

Furthermore, if I wish to withdraw the foreign currency in the future, similar fees would be charged at around the same rate :noway:

I understand each country has their own way of doing things but having never encountered these types of fees back home, I’m struck with incredulity that so many banks in Taiwan actually charge customers money for making foreign currency deposits and withdrawals and try to pass it off as if you handing them money is some sort of imposition on their banking business!! :slight_smile:

Anyhoos - if anyone could kindly tell me if there are any banks that don’t charge these rates? Or if these rates are unavoidable, which banks have the lowest fees when it comes to depositing/withdrawing FX?

I’m aware that wire transfers are an option but for the sake of my work, there are often times when I need to deal with moderate to slightly bigger amounts of FX cash notes

Thanks in advance for any responses to my query!!

2

You handing them large amounts of foreign banknotes IS some sort of imposition on their banking business. Banknotes carry cost and risk. They have to take the risk of counterfeits, and pay for storage. Banknotes are a physical commodity (although those outside banking don’t realize it). What if they acquire this commodity and then nobody wants them? The value to banks of this commodity also goes down when the physical condition of the notes deteriorates. And banks have to pay staff to process and store the notes, and security for storage and delivery. All of this (plus the bank’s profit) is covered by the fees.

3

If by back home you mean the US, I would love to know if there is a bank that lets you deposit foreign cash into currency accounts without any fee. I couldn’t find a bank that let me deposit foreign cash at all (unless it was a conversion to USD where they made money from the forex spread) let alone for free.

4

Banks in Taiwan have to deal with counterfeit NT…Banks in Taiwan also have to store NT that their customers deposit with them - but you don’t see them charging customers a fee for every deposit and withdrawal that is made

For heaven’s sake, we’re talking about major currencies here…not the Ethiopian Birr or Nepalese Rupee - You’re speaking as if the USD and other major foreign currencies are akin to the Black Plague…Why on earth would you ever question the demand of a commodity such as the USD when most banks and nearly all countries’ foreign reserves possess large holdings of it?

Maybe you should be writing letters to the foreign reserves of each major country and warning them against having a large reserve of foreign currency because one day, people might not want them and suddenly revert back to bartering

This is laughable - Where on earth do you come up with this notion that banks judge a banknote’s value based on its physical condition? A worn $100 USD banknote is worth just as much as a brand new freshly minted $100 USD bill - its value does not decrease just because it’s physical condition has deteriorated slightly

When it comes to foreign currency, I’m sure you’re aware that not every banknote held by banks are freshly minted - I’ve withdrawn and deposited plenty of slightly worn foreign currency banknotes without a problem - But the next time I go to a bank to get some $100 USD bills, I will definitely posit your logic and offer the banks $90 or $95 USD for $100 USD bills that are slightly worn, since according to you, the value of this commodity goes down when the physical condition of the notes deteriorates :unamused:

Again, banks do this for NT…in fact, banks in Taiwan would logically spend more man-hours processing, securing, storing and delivering NT than foreign currency - so why aren’t people charged a fee for depositing and withdrawing NT?

I understand that most banks will charge some sort of fees for providing a foreign currency account service due to some extra paperwork, and I understand that each country has their own protocols and way of doing things but the way in which Taiwanese banks levy these fees took me by surprise

I’ve dealt with banks that charge a nominal account keeping fee, banks that set a limit on how long the foreign currency you deposit must stay in your account before you can make a withdrawal, banks that require a weeks notice before you can make a withdrawal above a certain amount - all these I think are acceptable - I’m even willing to accept a fee on either depositing OR withdrawing foreign currency from personal accounts but a fee on each deposit and withdrawal into/from your personal foreign currency account is in my view, excessive

Looks like I’m going to have to stop whining and just accept it :wink:

Sorry llary, I’m not from the States but I’m pretty sure HSBC has a presence in the US that will allow customers to open an account (reasonably large opening balance required) that will provide this type of service for free…You can link accounts to branches in many different countries and I would do this but the HSBC in Taiwan requires an ARC before it will allow an account to be opened/linked

5

Well wherever you found a bank that lets you deposit foreign cash into a currency account you are getting a great deal, because in the 6 countries where I hold bank accounts only a very small handful of banks allow foreign cash deposits at all and none of them can do it fee free. My Citibank account in Taiwan does allow me to withdraw and deposit USD from their ATMs but last time I checked there was a %age fee.

6

I don’t know how big the amount is in foreign currency that you carry around with you, but be informed that amounts in excess of 10,000US$ need to be declared when entering Taiwan … if you leave the country without having done so and you carry more then 10,000US$, they can confiscate your money …

BOA used to have dollar accounts …

7

[quote=“gansikl”]Hi All Forumosans,

Will be moving to Taiwan soon for a short work stint and would like to inquire any knowledgeable Taiwan vets on the issue of depositing/withdrawing foreign currency to/from personal bank accounts in Taiwan. I have been told that most, if not all, Taiwan banks charge a small fee if you wish to deposit foreign currency notes - USD/Euro/JPY etc - into a personal account.
After inquiring with a few banks, I found that the approximate rate would be around 1500NT ($50USD) for a deposit of $10K USD :astonished:

Furthermore, if I wish to withdraw the foreign currency in the future, similar fees would be charged at around the same rate :noway: I understand each country has their own way of doing things but having never encountered these types of fees back home, I’m struck with incredulity that so many banks in Taiwan actually charge customers money for making foreign currency deposits and withdrawals and try to pass it off as if you handing them money is some sort of imposition on their banking business!! :slight_smile: Anyhoos - if anyone could kindly tell me if there are any banks that don’t charge these rates? Or if these rates are unavoidable, which banks have the lowest fees when it comes to depositing/withdrawing FX?

I’m aware that wire transfers are an option but for the sake of my work, there are often times when I need to deal with moderate to slightly bigger amounts of FX cash notes

Thanks in advance for any responses to my query!![/quote]

I read this several times and couldn’t wrap my head around it. And then I started to get what you’re asking, which then got me started asking questions…some of which I probably don’t have any right asking.

The easiest and most obvious solution: exchange the notes before you deposit them in the account. All banks have currency exchanges. I use Mega and Taiwan Cooperative. I deal with three to four currencies in my personal life and I’m constantly switching them out. Sure, I lose a few bucks on the exchange rates, but nowhere near 1500NT! It seems that since you’re going to be dealing with sums larger than 10K, you may want to keep it on the down-low as it were. Dunno. Not the point. At any rate, I recently got a check for 10K drawn on a US checking account. Mega Bank offered to deposit and convert the check into NT and into my account for 400NT – but here’s the catch: it would take one month to clear, meaning funds not available for 30 days. Since you’re dealing with currency notes, that’s not a problem. Again, simply swap the notes into NT funds for deposit. And vicey-versy for withdrawl amounts.

Now, if you want to talk about wiring different currencies between foreign banks, that’s a whole 'nother subject.

8

Check the rates at Megabank. I have checked with several banks and for dealing with foreign currencies, they seem to be the cheapest across the board.

Your best bet is to not bring much foreign cash. You would probably be better off transferring everything into NT and then back…would be cheaper. Also, be aware that they are going to look at EVERY bill. They have a little book with serial numbers they accept and ones they don’t. Trust me…you will never get it all deposited and/or exchanged. Travelers checks…much easier.

9

Um, yes, you do. I get charged for pretty much every single thing they do for me – ATM, depositing checks even things like bank statements sent to my home. Ya don’t get nuthin’ fer nuthin.’
I don’t think I’ve ever had an account anywhere in the world that was free.

10

I’m moving to Taiwan soon. I wondering if i can open an USD account in Taiwan that would allow me to transfer my funds in my US accounts to the USD account in Taiwan, one way or another. If possible, I’d prefer to be able to deposit personal checks from my US account to my USD account in Taiwan because I think that would be the cheapest way to transfer funds, and I don’t mind say a one month hold - provided there won’t be any fees associated doing it this way. Would that be possible in Taiwan?

And I can then withdraw USD cash from my USD account in Taiwan and exchange for TWD whenever I need money to spend. I think I can get better exchange rates if by cash, correct?

Also nobody seemed to have mentioned Bank of Taiwan in this thread. I’m wondering why? They seem to have pretty good exchange rates on USD -> TWD? Or am I missing anything? Thank you.

11

shoebox under the bed. safe deposit box. luggage locker at the airport.

three viable options for you right there.

12

[quote=“urodacus”]shoebox under the bed. safe deposit box. luggage locker at the airport.

three viable options for you right there.[/quote]

hey,

great advice - totally scientific … you forgot one more option, though - rice urn in the kitchen -

13

[quote=“urodacus”]shoebox under the bed. safe deposit box. luggage locker at the airport.

three viable options for you right there.[/quote]

— plus a a Kangaroo’s Pouch … sealed, of course.

14

I do not agree with anyone who say that such kind of fees are acceptable, because if I have a foreign currency account with the bank, then it should not be a problem to pay or withdraw in that currency. The Taiwanese banks try to make as much money as they can even from small things which should be free. For example, I went once to get a bank statement and my bank charged me NT50 dollars for it, although in other places such as Hong Kong I am entitled for a free bank statement every month which by the way my bank does not send it. It is really annoying that you give them money which they use for investing or lending and then come to charge a fee. Last month I went to the bank to open a HK dollar account, and had around 10000 HK dollars, I was told that they will charge me NT1750 for the transaction and same amount when I withdraw. Simply and without even saying thank you I left with their eyes all on me. I think, if someone does not really need this kind of account then it is better to keep the money in the kitchen inside a rice bag (another good idea to hide the money :slight_smile: :slight_smile: ) than giving a bank my money and a commission for keeping it.

15

So if that bank would have HK currency account, does that mean the banks in Taiwan will also have USD account? When you tried to open that HK dollar account, was your 10000 HK dollars in cash, bank note, personal check or something else ? And for cash, bank note or personal check, is there always a fee to deposit to open a foreign currency account? That’s what I would like to find out.

Yes, it’s outrageous if they actually charge a fee for “depositing” money. That’s just absurd!

Yes, one can hide one’s money in the kitchen or whatever secluded corners, but we’re talking foreign currency and even 10000 HK dollars will run out some day. And when that happens, how are you gonna transfer more HK$ or whatever currency from its source account in a foreign country? And there’s only so much foreign currency cash the customs will permit us to bring in.

16

Guys

I don’t understand why you are having so many issues. I have operated foreign currency accounts through Taiwan business Bank for years, in USD, EUR and GBP, all without issue.

Whilst i have not paid cash in for a while from memory the amount i deposited was the same as that credited to my account, ie no fees. Cash withdrawal was also done without fees. Transfer both In and Out do attract fees, again from memory these are 1.5% of transaction volume subject to a minimum of USD 20 again perfectly acceptable as they are doing work and is a service that every bank in the world charges for.

The only caveat i would add to the above that all of it was done with an ARC, so for those without then it might be different

17

[quote="HomeAgain

So if that bank would have HK currency account, does that mean the banks in Taiwan will also have USD account? When you tried to open that HK dollar account, was your 10000 HK dollars in cash, bank note, personal check or something else ? And for cash, bank note or personal check, is there always a fee to deposit to open a foreign currency account? That’s what I would like to find out.

Yes, it’s outrageous if they actually charge a fee for “depositing” money. That’s just absurd!

Yes, one can hide one’s money in the kitchen or whatever secluded corners, but we’re talking foreign currency and even 10000 HK dollars will run out some day. And when that happens, how are you gonna transfer more HK$ or whatever currency from its source account in a foreign country? And there’s only so much foreign currency cash the customs will permit us to bring in.[/quote]

you can open a bank account with all major currencies, and when I tried to open my account I had cash, because I was thinking that I could save this money and wire more from my HK account whenever I need and exchange it when the HK$/NT$ rate gets better (that day the exchange rate was NT$3.58 for 1 HK$). Also, if I wire money and keep it in the account then I will be charged as well, this is what I have been told and I do not know if other banks do the same.

18

[quote=“Traveller”]Guys

I don’t understand why you are having so many issues. I have operated foreign currency accounts through Taiwan business Bank for years, in USD, EUR and GBP, all without issue.
[/quote]

He’s not talking about a foreign currency account, though…

I ran into this one time: Had some USD around the house and foresaw no immediate use for it. The rates were favorable, so I asked the teller about changing it. She advised me to hang onto it, as there was a charge per bill, as well as service I think.

Just go to the gold shops up on Linsen Bai Lu…oh, wait, that was fifteen years ago. :laughing:

OP, leave your money in an account wherever you are and just bring an ATM card to withdraw from it with. I believe the daily cash limit on my Taiwan ATM card is like the equivalent of US$6,000. Check and see if banks wherever you are will let you withdraw amounts that are satisfactory to you.

19

Unless he’s Australian or So. African, then he should put the money in the bank here for a few months’ CD and get some nice(er) interest back.

The trick is finding out which banks will accept cash deposit/withdrawal for which currencies and which will only accept remittance.

Supposedly that big Citi Bank next to 101 lets you withdraw USD from the ATM.

I asked recently about depositing Australian dollars (summer job in Beijing, then visit Australia) in an account here for savings at First Bank, and I was told I have to remit money to the account because they don’t accept cash for AUD.

20

Hi folks,

Peviously I posted a question here asking the cheapest way to transfer USD of my checking account in the US to my USD account in Taiwan, provided USD accounts are available in banks in Taiwan. That’s before I arrived in Taiwan.

Now after having been here for two weeks, this is what I found out.

I only checked with Bank of Taiwan, Taiwan Cooperative Babk (TCB) and MegaBank since I think they’re probably the ones with the best exchange rates (USD vs TWD). I also checked with Citi Babk in Taiwan but their fee is so much higher (and hidden) that I ruled it out entirely.

I can open an USD account with these 3 banks and deposit personal checks from my US checking account into it, but I’ll have to wait one month for the funds to be available for me to use. There’s a fee for each such check deposited, they’re:

BOT NT600
TCB NT400
MegaBank 0.0005 of the check amount, Min NT200, Max NT800 (unless you’re dealing a HUGE amount, your fee will most likely fall under the minimum of NT200)

Also, for TCB only, when depositing first personal check, two guarantors are required.

The TCB teller told me the reason for needing guarantors is because legally the funds can be recalled by the source bank in three years from the date of deposit. I know nothing about law but this is what she told me.

You should also open a TWD account with the same bank. After the funds in your USD account here is available, when you need TWD to spend, you can then transfer the amount of USD you need to your TWD account, during which process your USD will be converted to TWD based on the spot exchange rate, which is higher than cash exchange rate. There’s no extra fee in the converting process and when you withdraw NT cash from your TWD account, there’s no fee, either.

The exchange rates for three banks today are as follows:

BOT 28.88 (spot) 28.58 (cash)
TCB 28.885 (spot) 28.685 (cash)
Mega 28.87 (spot) 28.6 (cash)

With my observation for the past one week, TCB seemed to consistently have the highest both rates, but remember they require 2 guarantors when you deposit your first US personal check. If you also take their respective fee into consideration, it appears to me that Mega has the best deal since their spot rate is only teenie weenie bit lower than TCB, but their fee is also NT200 less (for Mega, unless you’re dealing a HUGE amount, your fee will most likely fall under the minimum of NT200), and Mega does not require any guarantors.

BOT’s fee is NT600 and their spot rate is second highest. So if you have a huge amount that will make your fee with Mega exceed NT600, then BOT is also a good choice if you don’t want to deal with the trouble of getting guarantors.

So the bottom line is how much you have in USD and the fee you have to pay with that amount.

But if you have cash, then TCB seems to have the best rate since none of these 3 banks charge any fee when you sell USD cash.

But call / visit them before making any decision since this kind of things can change any time.

If anybody knows of any better deals, I’d like to know, too.

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