Banking In China

[2mike&jin]

When we lived in China - BOC for most accounts - old style "bankbook" go the bank, wait in line, etc. I/We elected not to open a HSBC account because of the USD $50K requirement - with no interest to have a "worldwide account". Now I find we "need" to be able to do either Iphone or Computer banking, moving money to China, exchanging money USD-RMB, and transferring from "normal accounts" to "high interest - think CD type accounts".

 

Question: Has anyone got these type of accounts that they access online - from the US, and has anyone actually wired money to them and exchanged USD-RMB? If so, has anyone ever done the "reverse", bringing the money back?

 

Yes, I'm aware that each PRC individual with a "resident card" can exchange $50K USD each year as a limit. Yes, I'm aware of the approx 1% exchange cost for each conversion.

 

Thanks Hawaii Mike

 

PS. I should've started a poll....does anyone think the RMB will move higher against the USD in the coming years?

....is it better to trade Forex - and just get the exchange rate movements or,

....is it better to put the money in an RMB - CD account - earn 5% int, pay no PRC taxes - and get the Exchange Rate increase?

Edited January 17, 2011 by 2mike&jin (see edit history)

[Randy W]

The Bank of China online banking allows access to your BOC account online. A Bank of America account is separate, but may be accessed at BOC ATM's with no charge beyond the conversion at up to 2000RMB per day (limit at our ATM). This does NOT count against your $50,000 annual limit.

 

To wire money from US to China, the BOA had a few hoops to jump through (and extra fees) if you transfer more than $1000. I go through our online broker, TDAmeritrade, and specify the BOA as the "transfer agent" or some kind of intermediary (I don't remember the terminology here). This transfer is apparently free (no fees at either end), although someone always manages to bleed $10 (undocumented) off the transaction (I'm guessing the BOA). You must then show up at the BOC office to have the money converted to RMB and placed in your account (I'm sure you can keep it in dollars, if you prefer, but we haven't done this).

 

Either way, you get the maximum exchange rate (although we occasionally have to remind them at the bank). I think the exchange cost is less than the 1%, though.

 

No, we haven't sent money in the other direction.

[Randy W]

Oops - back up a little here. Our account is with the China Construction Bank, not Bank of China (sorry 'bout that)

 

But I think the situation with the two Bank of China's (US and China) is similar - maybe someone else has had direct experience with the BOC.

[Mike and Yan]

The Bank of China online banking allows access to your BOC account online. A Bank of America account is separate, but may be accessed at BOC ATM's with no charge beyond the conversion at up to 2000RMB per day (limit at our ATM). This does NOT count against your $50,000 annual limit.

 

To wire money from US to China, the BOA had a few hoops to jump through (and extra fees) if you transfer more than $1000. I go through our online broker, TDAmeritrade, and specify the BOA as the "transfer agent" or some kind of intermediary (I don't remember the terminology here). This transfer is apparently free (no fees at either end), although someone always manages to bleed $10 (undocumented) off the transaction (I'm guessing the BOA). You must then show up at the BOC office to have the money converted to RMB and placed in your account (I'm sure you can keep it in dollars, if you prefer, but we haven't done this).

 

Randy

I presume you are doing this all from China on a computer purchased in USA.

And you can access BOA account (from China) to XFR the $$$ to BOC as you outline.

So let me see if I got this..... BUT...Because of the fees you execute trade using yourTDAmeritrade account online?

Edited January 17, 2011 by Mike and Yan (see edit history)

[Randy W]

The Bank of China online banking allows access to your BOC account online. A Bank of America account is separate, but may be accessed at BOC ATM's with no charge beyond the conversion at up to 2000RMB per day (limit at our ATM). This does NOT count against your $50,000 annual limit.

 

To wire money from US to China, the BOA had a few hoops to jump through (and extra fees) if you transfer more than $1000. I go through our online broker, TDAmeritrade, and specify the BOA as the "transfer agent" or some kind of intermediary (I don't remember the terminology here). This transfer is apparently free (no fees at either end), although someone always manages to bleed $10 (undocumented) off the transaction (I'm guessing the BOA). You must then show up at the BOC office to have the money converted to RMB and placed in your account (I'm sure you can keep it in dollars, if you prefer, but we haven't done this).

 

Randy

I presume you are doing this all from China on a computer purchased in USA.

And you can access BOA account (from China) to XFR the $$ to BOC as you outline.

So let me see if I got this..... BUT...Because of the fees you execute trade using yourTDAmeritrade account online?

 

 

 

Actually, my computer was purchased in China - no difference because of that. The Internet is the same piece of wire, and some of the same electrons floating around whether accessed in China or the US. I eventually replaced the Chinese XP with my own English-language XP, since once in a while, I'd have to make a choice without being able to decipher the options.

 

So, yes, I have (separate) online access to my TDA, BOA, and CCB (China Construction Bank) accounts - BOA is restrictive about online transfers, TDA is not (that's why I use TDA). TDA also allows free ECH transfers between it and the BOA (and any other American bank). To wire money from TDA to CCB, I have to send a fax (I can do THAT online through FaxItNice.com).

 

But NO, there is no DIRECT transfer from BOA to CCB as far as I know (just the wire transfer). The Bank of China has a branch in the US, but I'm not sure that the connection (for our purposes) offers an advantage over the BOA/CCB connection - this is what Mike is asking about.