Taking Advantage of Stronger Dollar

[tnactorsdad]

Our son goes to school in Scotland and we pay his tuition in British Pounds. Last summer the pound cost us $2.04 today it is trading today at $1.44. The tuition for the 2009-2010 year has been established and must be paid in full prior the beginning of the school year (late September). the tuition has gone up about 5% but with the current dollar strength If we pay his tuition today we will save over $4,000 from last years tuition. I have spoken to the registar at the school and they wil not accept the payments for next year until August 1st. Does anyone know where you can buy pounds and keep them in an account (in USA) and wire on the August 1st?

[sagiter]

Bank of Scotland

FL 5
565 5th Ave, New York, NY 10017
(212) 803-3419

You might try contacting these folks and asking if you can open an account.

[oldfort]

Why don't you open up a FX trading acct? Buy some pound now.

[scualum]

Have your son open an account at a local bank there in St. Andrews - and then wire him the money now (with a strong caveat of you can't touch this )

[arabrab]

If you have the funds available, you might want to put more in the bank in G.B. -- and I don't see why the account couldn't by in your name. My sister went to school in Canada during a time when the US dollar and Canadian dollar fluctuated wildly -- unless you think that the GB pound is going to be worth even less in the future, this might be a fabulous way to lock in a great conversion rate.

[JHS]

You can also lock in the price by purchasing currency options or futures. You can do that through a broker. Gain (if there is gain) between now and when you pay the tuition will be taxable, though. That's true of buying actual pounds now and paying tuition later, too.

[swimcatsmom]

I have a bank account in the UK - send it to me I'll take good care of it for you.

Seriously I agree with the other posters. Open an account or have your son open an account and wire transfer the money over. Wire transferring is pretty easy. You fill a form out and pay a fee. When I transferred money from the UK to hear the fee was @ 25pounds and I got the bank rate (not the horrible tourist rate).

There are lots of banks. We have an account with Barclays and I believe they have some sort of relationship with Bank of America as when I use my debit card here there is no fee if I use it at BOA but there is if I use it elsewhere.

[guillaume]

Try HIFX. We buy Euros with them. They can lock in a rate for up to 2 years. But unfortunately the $ took a dive this week against major currencies.