UK bank accounts that are best for easing the transition the US?

[Nich-Nick 3,353]

Checks have their place...like when you mail your elderly aunt money each month. She doesn't do PayPal, have a computer or cell phone, or trust online banking. And there's always the illegal gardener who doesn't take credit cards. And there's the elderly ex-Inlaws you do taxes for every year. Grand-dad will not hear of e-filing. He wants to mail his paper return and handwritten check to the IRS like he has for decades.

[Owen_London 65]

I was just dropping by and saw this thread.

All advice I have seen recently is in line with Simon's recent experience. While HSBC offer to transfer accounts and credit, it simply doesn't work very well. When you consider how easy it is to open a US bank account that isn't interest-bearing with most of the major banks or most local credit unions, it doesn't make sense to go through the rigmarole of trying to sort anything out in the UK.

[simonschus 58]

Hi all,

I thought I'd provide an update on how I've been trying to open a US bank account and a credit card prior to arrival in the US on a K1 visa. Two products, mentioned below, purport that they can do this but I've had less than stellar attempts at trying to get it all sorted prior to arriving in the US! Indeed, both have been a bit of a rigmarole on my progress in trying to get accounts set up with HSBC and American Express prior to moving to the US. I have persevered though and here are my continuing experiences thus far.

American Express Global Transfer

I went through the telephone application with AMEX US in Feb/March, the application was forwarded to the Global Transfer team who said that they couldn't process until I had arrived in the US despite what I had been told on my initial phone call with them. They listened back to the phone call and found out that I had indeed been misinformed that the account could be opened prior to moving to the US. It should be noted that it is fairly easy to get in direct contact with the Global Transfer team and they are really helpful. They have put my application on hold and told me that all I have to do when I get to the US is send them a proof of address from their list of approved documents (e.g. a letter from the bank). Once they have that, they've said that they'd send out my card. Hopefully, this is all that will need to be done! They told me that they mostly deal with people relocating due to their job and hence why the process is a little more difficult for people moving over on a K1 visa.

Overall, the process has been a little painful but mostly because of having to take the time for my telephone call to be reviewed. I get the feeling that it would be much easier to organise this when in the US.

HSBC - International Bank Account Opening

I went through the telephone application with HSBC UK in April, and the UK-based International Bank Account Opening team told me that there were regulations that prevented them from opening the account for me until I land in the US. I queried this and I was contacted back and told that this is somewhat incorrect. I was told that HSBC US are aware of the confusion but that they had confirmed that I could apply for a US bank account on a K1 visa prior to arriving in the US. In fact, they suggested it might be easier given that I could visit my UK branch of HSBC rather than having to visit a US branch of HSBC which can be slightly difficult to find. We went through the application which took an hour on the telephone. We used my UK employment and income details and I mentioned the specific work authorisation restrictions on the K1 visa. The next stage is for me to go to a UK branch of HSBC with all my documents to be verified (UK passport; UK drivers license; my K1 visa in the UK passport). Once that is done, I am told that it will take a few weeks to get everything sorted including dealing with any requests for further information. I am also told that my HSBC account will be a checking/current account; the credit card account and internal credit history transfer is dealt with separately once the checking account is set up.

Overall, the process have been a little painful but mostly because of process-related confusion. I get the feeling that some of the new banking regulations that came in on January 1st 2016 have been confusing, and that some banks have been amended their processes to abide with the regulations in a risk-averse and heavy-handed manner.

What do I take from this all?

It seems like you can begin the applications from the UK before moving out to the US.

However, I'm still yet to find out if you can successfully complete the opening a bank account or credit card before arriving in the US on a K1 visa. Certainly, it seems you can't complete the application for an AMEX on a K1 visa until you arrive in the US. I'm waiting to find out about HSBC though.

I also find that the two companies involved do genuinely try to be really helpful. The staff I've spoken to have been wonderful, and really kind!

Would I go through these processes again?

Not really. It would probably be simpler to open checking and credit card accounts in person in the US albeit not necessarily with those banks. This excursion into bank account opening was a challenge as I thought it'd be interesting to see how far I could get! I wouldn't encourage others on a K1 visa to engage in the same process unless they have the patience and time. I have a feeling that those due to enter a marriage visa may be faced with similar problems but that you would make much faster progress if you're relocating for your job (and could provide evidence to that effect).

I'm getting close enough that it seems appropriate to continue with the process to completion, or at least as close to completion as possible. I should also note that I tried the above products prior to arriving int he US. It may be that the above products work brilliantly once you have arrived in the US. Indeed, a number of people have chimed in on my journey with that very sentiment! Indeed, I think one or two people have even said that they managed to get everything set up prior to moving to the US although their experiences were more than 6 months ago - compared to the them, I might be facing some difficulties in 2016 due to stronger fraud/money laundering/terrorism prevention initiatives as well as issues concerning FATCA and ITC regulations some of which came into full force on January 1st 2016 (I'm not an expert in banking sector though... I'm just musing).

If you have any recent experiences or want to chime in then do shout on out

Take care all! Simon

Edited May 3, 2016 by simonschus

[simonschus 58]

An update based on my experience of opening a bank account in the US prior to leaving the UK.

Yesterday, HSBC UK and HSBC USA each confirmed that my current/checking account in the US is now open. I should receive my cards/pins, etc through soon. The cards are being sent to my UK address so I'm not too hopeful that I'll receive them prior to moving over to the US next week. I might ask for the cards to be sent to my US address which I can probably do when HSBC US call me in the next day with their planned "welcome call".

The really kind people on the telephone provided me with my account number and routing number which was really nice of them, after going through various identity checks. Today, I've just made my first transfer of £10 into my HSBC US account. I used TransferWise for the small test amount (the amount should arrive into my US bank account on Friday at around $11.43 after the £2.03 fee was extracted). I'm hoping that these transfers will be classed as 'direct deposits' so that I can avoid a low activity fee ($13) for given that I won't have too much activity in my account during the first month.

So yes... in conclusion, it remains possible to open a US bank account from the UK prior to moving out on a K1 visa. It was a lot of hassle (see previous posts) and I'm unsure it is worth the effort. However, it can be done.

The next stage will be whether they can open a US credit card for me using their internal credit history process. I doubt they'll have time to open this prior to me arriving in the US and it might be a problem for them too but we shall see!

Simon

Edited May 17, 2016 by simonschus

[bariki 71]

So, having been here since Oct 2015, I'll throw in my experiences to date.

American Express have been their usual flawless selves. Global Transfer was trivial and I received the card in my hand within a week of apply for it (though I did wait for my SSN before applying).

HSBC did, as I mentioned earlier in the thread, require some beating to get what I wanted but, once the account was set up, I've had no troubles. They have also now extended me additional facilities such as a higher credit limit on my card with them, overdraft protection and - now that I have started working - are offering a pretty decent rate on a mortgage for my husband and I to buy a place together. My one complaint about them is their telephone customer service, which is not up to the same standard as in the UK: simple questions often yield a "please hold". Their left hand often doesn't know what the right hand is doing (one time I received two letters from them on the same day, one asking me to fill in a W8, the other a W9). Oops.

Thanks to the above, I now have a pretty decent FICO score. In my opinion, and for my circumstances, it was worth the effort to get the 'leg up' in terms of credit and lending. I've used that to get a credit card with a US bank and will be opening a joint account with my husband soon. It's worth bearing in mind that many employers run credit and background checks on employees (in my industry anyway) - handy to not have to worry about that.

[bariki 71]

An update based on my experience of opening a bank account in the US prior to leaving the UK.

Yesterday, HSBC UK and HSBC USA each confirmed that my current/checking account in the US is now open. I should receive my cards/pins, etc through soon. The cards are being sent to my UK address so I'm not too hopeful that I'll receive them prior to moving over to the US next week. I might ask for the cards to be sent to my US address which I can probably do when HSBC US call me in the next day with their planned "welcome call".

The really kind people on the telephone provided me with my account number and routing number which was really nice of them, after going through various identity checks. Today, I've just made my first transfer of £10 into my HSBC US account. I used TransferWise for the small test amount (the amount should arrive into my US bank account on Friday at around $11.43 after the £2.03 fee was extracted). I'm hoping that these transfers will be classed as 'direct deposits' so that I can avoid a low activity fee ($13) for given that I won't have too much activity in my account during the first month.

So yes... in conclusion, it remains possible to open a US bank account from the UK prior to moving out on a K1 visa. It was a lot of hassle (see previous posts) and I'm unsure it is worth the effort. However, it can be done.

The next stage will be whether they can open a US credit card for me using their internal credit history process. I doubt they'll have time to open this prior to me arriving in the US and it might be a problem for them too but we shall see!

Simon

Huh, all my HSBC cards were sent to my US address but I did explicitly request that. I also use TransferWise to move money from the UK to the US and can highly recommend it - I've been using it since I emigrated, have had zero problems and your first transfer is free. As for HSBC's account maintenance fee, you can also avoid it by maintaining a minimum balance (varies by account type).

I had to prod my relationship manager at the International Banking Center in New York to get HSBC to issue me a US credit card but a single email is all it took. My local branch finds me an unusual sort as most of their clients tend to be Chinese but it does have the feel of more "old fashioned" banking in that the manager remembers my name, asks about my husband and is generally affable and doesn't just treat me like a number.

YMMV. Maybe I've just been one of the lucky few.

[simonschus 58]

Hi all

AMEX issued their card out to me yesterday on the telephone and apologised for the delay- they couldn't do anything until they had my proof of address which I couldn't get until I had a bank statement or similar letter. I got this yesterday, faxed it over and my online banking on the AMEX USA website tells me that my card is on the way and should be with me tomorrow.

With HSBC, the checking/debit card and the credit cards are all working fine albeit they have me a much lower credit limit than I was used to in the UK. Seems fair enough- I shall just use the card and pay off after each statement is produced and apply for an increase after two/three months or so I agree completely about the HSBC US customer service- they are quite hit or miss and it takes ages to get anything done, often with errors too. I was surprised by this given experiences with HSBC UK. My cards actually ended up arriving to my US address despite what I had been told on the phone and by email that they'd arrive to my UK address! Now that I have my SSN, I have just sent off my W9 to update them with my SSN and hopefully that'll be processed without any issue. Otherwise, I have tried to avoid the customer service for any queries I've had in the last few weeks because it is a real hassle- simply trying to get my US cell phone number added to my account was difficult enough (the online system wouldn't save the number so I had to contact them).

I agree entirely about having the leg up in terms of credit. It has seemed useful. The services are useful, but I'd have been happy waiting until arriving in the US rather than trying to do it prior to leaving the UK.

Simon

P.S. I am a big fan of TransferWise. They've delivered quickly into my US account ,

[Tezcatlipoca 1]

Hi Simon,

I'm having some really big problems opening the HSBC USA account with the IBC team.

They insist that I need a letter from a US employer that I don't yet have, as I am moving over on a Diversity Visa.

Is there any advice or help you could offer?

Kind Regards,

Tez.

[Tezcatlipoca 1]

Just to keep everyone in the loop.

After weeks of long telephone conversations, and trying everything I can, the HSBC IBC team would not open a US account for me without a letter from a US Employer.

I'm going to wait a couple of weeks until I land in the US, and see if there is a way to transport my HSBC UK credit history from that end.