[Sg banking Qn] - If I can use my DBS savings account to remit USD, why do I need a multi-currency account?

[UltimaOnline]

[Qn] - If I can use my dbs savings account to remit USD, why do I need a multi-currency account?

I was told that to remit USD overseas to USA, I needed to use a DB multi-currency account, not a local savings account.

So I setup a multi-currency account, deposited some SGD into the multi-currency account as USD. I tried to remit USD over using the multi-currency account, but it seems DBS requires 2 working days to complete the SGD to USD conversion process? So I tried remitting USD from my local savings account instead, and it seemed to work instantaneously, no need for 2 working days.

So what's happening? Why bother with a multi-currency account that holds up my funds for 2 working days converting from SGD to USD, when I can always just use my savings account to remit USD over to USA instantaenously? Anyone knows?

 

[UltimaOnline]

Anyone can help answer please?

@glockman

 

[glockman]

Anyone can help answer please?

@glockman

Having a foreign currency account (USD) prevents one from being subjected to exchange rates fluctuations when sending or receiving USD. No currency conversion is involved. I don't know what is a multi-currency account. I think most of us have SGD bank accounts which allow us to send and receive payments in any currency. Subject to prevailing exchange rates.

 

[glockman]

[Qn] - If I can use my dbs savings account to remit USD, why do I need a multi-currency account?

I was told that to remit USD overseas to USA, I needed to use a DB multi-currency account, not a local savings account.

So I setup a multi-currency account, deposited some SGD into the multi-currency account as USD. I tried to remit USD over using the multi-currency account, but it seems DBS requires 2 working days to complete the SGD to USD conversion process? So I tried remitting USD from my local savings account instead, and it seemed to work instantaneously, no need for 2 working days.

So what's happening? Why bother with a multi-currency account that holds up my funds for 2 working days converting from SGD to USD, when I can always just use my savings account to remit USD over to USA instantaenously? Anyone knows?

Bank telegraphic transfers would normally take a day or two. I believe that's the norm.

 

[UltimaOnline]

Bank telegraphic transfers would normally take a day or two. I believe that's the norm.

Thanks. I just don't understand why some people say a multi-currency account (eg. DBS multiplier account or DBS My Account) is needed to send USD (which has a 2 day working delay to convert SGD TO USD before DBS can release the funds) when it seems I could do so instantaneously (at least instantaneously releasing from DBS side, even if US side needs some time to receive) using my local SGD savings account instead of having to 1st convert to USD using the multi-currency account.

 

[eatshitndie]

if you remit usd from local savings account based in sgd the bank is more than willing to charge you sextra on sexchange fees and or transaction profits from buying low and selling high during the sexchange. the bank basically becums a money changer and will always win. instead of giving you 1 usd for every 1.369 sgd for sexample, the bank will give you 1 usd for every 1.42 sgd. it will cost you more sgd to buy usd than the open market rate, plus fees. win win for bank. if you have a multi currency account, your portion of deposits in usd is not subjected to the buy low sell high daily fluctuations of currency sexchange. but there’s at least a 24-hr delay in inter-bank transfer of funds when the receiving bank is in u.s. some kind of dhs and sec requirement to sniff out money laundering and illegal transfers after 9/11.

 

[UltimaOnline]

if you remit usd from local savings account based in sgd the bank is more than willing to charge you sextra on sexchange fees and or transaction profits from buying low and selling high during the sexchange. the bank basically becums a money changer and will always win. instead of giving you 1 usd for every 1.369 sgd for sexample, the bank will give you 1 usd for every 1.42 sgd. it will cost you more sgd to buy usd than the open market rate, plus fees. win win for bank. if you have a multi currency account, your portion of deposits in usd is not subjected to the buy low sell high daily fluctuations of currency sexchange. but there’s at least a 24-hr delay in inter-bank transfer of funds when the receiving bank is in u.s. some kind of dhs and sec requirement to sniff out money laundering and illegal transfers after 9/11.

I understand, thanks. But my question remains : since I'm using the same DBS exchange rate (SGD to USD) whether I send USD from SGD from my savings account, or send USD from USD earlier converted from SGD (using the same DBS SGD to USD exchange rate) from my multi-currency account (eg. DBS Multiplier account or My Account), so there's no difference in terms of exchange rate (since using the same DBS exchange rate), right?

Then what's the point of 1st converting SGD (from DBS savings account) to USD (in DBS multiple-currency account) which takes up 2 extra working days to process, but uses the same DBS exchange rate anyway? No additional benefit, just wasting 2 days waiting time, yes?

 

[Rogue Trader]

If it's a one off transfer then don't need to heart pain about forex exposure. If you run a biz that transacts in non SGD then it makes sense to maintain foreign currency accounts for both receipt and payment

 

[glockman]

Thanks. I just don't understand why some people say a multi-currency account (eg. DBS multiplier account or DBS My Account) is needed to send USD (which has a 2 day working delay to convert SGD TO USD before DBS can release the funds) when it seems I could do so instantaneously (at least instantaneously releasing from DBS side, even if US side needs some time to receive) using my local SGD savings account instead of having to 1st convert to USD using the multi-currency account.

Does the DBS multiplier account give you higher interest on your deposits? I can only think of this reason to have multiple accounts in the same bank.

 

[UltimaOnline]

Does the DBS multiplier account give you higher interest on your deposits? I can only think of this reason to have multiple accounts in the same bank.

If DBS multipler account, yes higher interests if you fulfill certain spending criteria.

What I don't understand is the accuracy or validity of the instruction that I must send USD from multiple-currency account (taking 2 working days to convert SGD to USD before DBS will release the funds), instead of sending USD directly dfrom SGD in savings account which has no delay at all.

You want me to post the video that gave this dubious instruction?

 

[Rogue Trader]

What I don't understand is the accuracy or validity of the instruction that I must send USD from multiple-currency account (taking 2 working days to convert SGD to USD before DBS will release the funds), instead of sending USD directly dfrom SGD in savings account which has no delay at all.

Is there an amount limit on the transfer?

 

[UltimaOnline]

Is there an amount limit on the transfer?

Whether sending from savings account or multi-currency account, you set the limit yourself. DBS doesn't impose any limit afaik.

 

[glockman]

If DBS multipler account, yes higher interests if you fulfill certain spending criteria.

What I don't understand is the accuracy or validity of the instruction that I must send USD from multiple-currency account (taking 2 working days to convert SGD to USD before DBS will release the funds), instead of sending USD directly dfrom SGD in savings account which has no delay at all.

You want me to post the video that gave this dubious instruction?

So two working days is taken up by DBS for it's internal transfer of your funds from one account to another? I do not know enough of this, but it does not seem very efficient to me.

Once sent, USD wire (telegraphic) transfer will take a day or two to reach the recipient. Need to route to New York first via Swift.

 

[UltimaOnline]

Everyone in this thread, here's the video with the instruction "for the bank account, do make sure you are using the multi-currency account" (at 3:27)

 

[UltimaOnline]

So two working days is taken up by DBS for it's internal transfer of your funds from one account to another? I do not know enough of this, but it does not seem very efficient to me.

Once sent, USD wire (telegraphic) transfer will take a day or two to reach the recipient. Need to route to New York first via Swift.

Sending USD from my SGD savings account, it took the US side less than an hour to receive the USD funds. If I didn't try sending from saving saccount and instead followed the video's instruction to send only from multi-currency account, I would have had to wait 2 working days for DBS to release the USD funds from the multi-currency account, instead of instantaneousy from the savings account. Why?!? What's the point?!?

 

[glockman]

Sending USD from my SGD savings account, it took the US side less than an hour to receive the USD funds. If I didn't try sending from saving saccount and instead followed the video's instruction to send only from multi-currency account, I would have had to wait 2 working days for DBS to release the USD funds from the multi-currency account, instead of instantaneousy from the savings account. Why?!? What's the point?!?

Then it is good that you found a more efficient way to send your money! Banks, like God, work in mysterious ways.

 

[mahjongking]

[Qn] - If I can use my dbs savings account to remit USD, why do I need a multi-currency account?

I was told that to remit USD overseas to USA, I needed to use a DB multi-currency account, not a local savings account.

So I setup a multi-currency account, deposited some SGD into the multi-currency account as USD. I tried to remit USD over using the multi-currency account, but it seems DBS requires 2 working days to complete the SGD to USD conversion process? So I tried remitting USD from my local savings account instead, and it seemed to work instantaneously, no need for 2 working days.

So what's happening? Why bother with a multi-currency account that holds up my funds for 2 working days converting from SGD to USD, when I can always just use my savings account to remit USD over to USA instantaenously? Anyone knows?

the MCA is useful if you receive lots of foreign currencies in your business, the received funds will not be converted to sgd in case you dont like the exchange rate on that day. it will remain in foreign currency until you give instructions to convert to sgd.

for savings accts.....once foreign currency is received the bank will straightaway convert to sgd without your concent, even if you never give instructions to convert

 

[UltimaOnline]

the MCA is useful if you receive lots of foreign currencies in your business, the received funds will not be converted to sgd in case you dont like the exchange rate on that day. it will remain in foreign currency until you give instructions to convert to sgd.

for savings accts.....once foreign currency is received the bank will straightaway convert to sgd without your concent, even if you never give instructions to convert

That makes sense, thanks. So as far as sending over USD to the US side is concerned, there's no reason to follow the video's instruction to send USD from MCA, and I can just directly send USD from my local savings account yes? No reason to wait additional 2 working days for DBS to process my SGD into USD 1st from savings account to MCA, right?

 

[mahjongking]

That makes sense, thanks. So as far as sending over USD to the US side is concerned, there's no reason to follow the video's instruction to send USD from MCA, and I can just directly send USD from my local savings account yes? No reason to wait additional 2 working days for DBS to process my SGD into USD 1st from savings account to MCA, right?

this payment could be a USD bank holiday thats why delayed idk
when u made another payment from savings it could be normal day
not too sure, best is you call up dbs and ask why, could be some compliance thing

what i know is, the MCA is good because, lets say you need to send out swiss francs later this month, if you think swiss francs is cheap now, you can buy first and keep in MCA. you cant do that with savings acct. same with foreign currencies funds that u received

 

[sweetiepie]

Imuho it is something similar to ocbc setting trap in their mobile app to jump from fast transfer to become giro and then they can hijack your money for 3 working days (more if ph or weekend is involved ) and worse is you cannot leevert the process I.e they also need 3 working days to cancel the giro)
There is no explanation nor logic behind all these becas the objective is to hijack money.