Best Way to Exchange USD Physical Cash to AUD? HSBC? Wise? IKBR?

LitsDANNY on 10/06/2024 - 21:57
Last edited 10/06/2024 - 21:58

I have some USD cash, not a significant sum, perhaps less than $8k.

Have no plans to travel back to the US for a long time. Wondering what is the best way to convert the USD into AUD?

I have read HSBC Everyday Global USD account takes a cut via a 2% FX spread, versus something like Wise and IKBR which are close to the mid-market rate.

I have also read based on the HSBC website that there are various fees, including deposit service fees, and then outbound/inbound telegraphic fees, and correspondent bank fees as well - are there other options where these fees are either avoided, or minimised?

e.g. Are there less fees with a Westpac USD account? (and then can transfer from Westpac USD -> Wise USD?)

What would be the path/option for the lowest fees? Can anyone please help outline the steps required to get it into Wise/IKBR and convert into AUD? And what are the approximate/rough fees I would be looking at? Or any other better options?

Thanks guys

Financial Currency Exchange

Comments

  • askbargain on 10/06/2024 - 22:11
    +3

    Might as well hold on to it and convert it when you travel anywhere.

    Wise won’t take your cash. Not sure about HSBC.

    • itsDANNY on 10/06/2024 - 22:14

      Thanks - fair point, would consider that as a last resort to use it when travelling to other countries - prefer to honestly convert it into AUD at this stage.

      Yeah I was thinking with Wise, just means I need a way to transfer into Wise - which I suspect I'd need to first deposit it into a USD bank account (whether that be Westpac, HSBC, ???) - but not sure what has the least fees to do so. Was hoping someone's done this before or has experience that could share some insights.

  • wannagrababargain on 11/06/2024 - 14:06
    +2

    Are you in Melbourne? If you have physical cash (notes) you can go to United Currency Exchange, they seem to have the best rates but prepare to spend about an hour out of your time going there and waiting in line. You can book ahead to lock in a rate and to make sure they have the AUD on hand for you. Still need to line up if you book but advantage of booking ahead is you are guaranteed not to be turned away due to lack of notes in stock and lock in the rate when you book online. You'll need ID etc.

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