US dollar accounts

[swithey]

I have $40,000 US in a bank in Canada (part of my Dad's estate) and I want to open a dollar account in the UK, where I live, banking on the dollar's recovery against the pound. The exchange has already moved from $2.00 to $1.76 per £1 in just the short time since I decided to let it ride. Which is the best UK dollar account for UK investors? I would want to be able to convert it to £££s quickly at the oportune moment.

 

[gc1]

Not sure if you are talking about US$ or CD$.

If US$, "best" in terms of low fees, interest paid or acceptable fx commission ? Citibank will pay 3% interest for the first 6 months with instant access - but like all banks will grossly overcharge you for the fx conversion.

I would suggest keeping it in an account with Interactive brokers, only low interest paid (1.49% for US$ or 2.56% for CD$ and none on the first $10,000) and some minimum monthly commissions payable ($10/mo) but you can convert it at any instant of time you want at a competitive rate (2 or 3 pips spread most of the time for US$ to £, a bit more for CD$ to £). You'll probably have to transfer it via a US$ or CD$ current account in your name to get it there.

Just re-read and saw you do mean US$.