Banking in China

[gracena]

Hi Guys - I just had a quick question about the matter of banking in China. Is it smarter to open up a bank in China or just using your account from the States? In addition, every time you withdraw cash from the ATM machine, are there additional transaction fees?

I use Bank of America. Any help or tips are appreciated! I'm such a noob at this whole thing -_-

[jkhsu]

If you're going to be in China for a short period of time (less than a couple of months maybe), you don't really need a Chinese bank account. You can withdraw RMB from any China Construction Bank ATM free of charge with your B of A ATM card. Just keep in mind that there is a 1% International Transaction Fee that you really can't avoid and B of A has one of the lower rates already.

If you're going to be in China for a while or will be earning money there, you can simply just open a China Construction Bank account (or any other Chinese bank of your choosing) and get a debit card from them that you can use anywhere to pay for meals, entertainment, etc. To get money into the account, what you can do is take out money from the China Construction Bank ATM (as described above) and then deposit the RMB into your Chinese bank account. It's a lot easier when it's the same bank so you don't need to walk around with a bag of cash. You can always wire money to your Chinese bank account of course but this takes more time.

Here's the info on fees from B of A:

http://www.bankofamerica.com/deposits/checksave/index.cfm?template=lc_faq_ATM

Excerpt:

"What are the fees for using a debit card or ATM card in a foreign country?

Withdrawals, transfers, payments and balance inquiries made at ATMs in foreign countries outside the Global ATM Alliance, China Construction Bank, or Banco Santander will be charged a $5 Non-Bank of America International ATM fee.

In addition, an International Transaction Fee may be charged for ATM card and debit card transactions made for ATM cash withdrawals in currency other than U.S. dollars, regardless. The International Transaction Fee will be 1% of the U.S. dollar amount for each converted ATM cash withdrawal. This International Transaction Fee will appear as a separate item on your banking statement for each international transaction."

[gracena]

Thank you so much jkhsu! It cleared up a lot of questions! I thought the transaction fee was 3% but glad to know it's 1%. Thanks!

[jbradfor]

3% is typical for the foreign exchange fee for credit card purchases, which may be why you have that number in mind. [bTW,CapitalOne is one of the few US credit cards that do not charge this fee, which can be quite a large savings, esp on hotels.

[diste01]

I also would like to ask a few questions here. My story is a little different. I'm a European living in Thailand and am moving to Shanghai in 3 weeks. Some of my cash is in Thai account in THB and some in my Polish account in PLN. I don't feel safe keeping my cash in THB in Thailand since the political situation in the country is far from perfect.

As a result I managed to open an account in Bank of China (they have 3 branches in Thailand) that basically has 2 sub-accounts one in THB and one in RMB. I also got a Union Pay debit and credit cards and benefit from really good exchange rate between THB - RMB. Great for a start so I can transfer cash to my RMB account anytime.

The problem with this is that every time I take the money out in Thailand i pay THB8 per transaction (not much but still). In China it's a lot higher, it's RMB12 per transaction which equals around THB50 or USD1.6. Still not that much anyway but I really want to have an account that will impose 0 fees. Also my card is Union Pay so I'm guessing I'll have problems with booking flights online etc. I'd like to have a Visa card with "raised" numbers - ideally simple debit card.

On the other hand my status in Thailand now is working/employed so opening any account or applying for a credit card is no problem at all while in China I'll be a student and hence I can imagine I'll have limited options of opening a bank account there and/or getting a credit card. I'd like to open a "normal" bank account in China with a VISA card with "raised" numbers and am thinking what you guys could suggest. I would also consider opening an account in USD. What are my options in China/Shanghai?

An accountant from my company suggested I go to Hong Kong this or next week to open USD or HKG account since it's absolutely free and anyone can do that (not sure if it's true). It's also a safe place to keep your money. He recommended HSBC and Standard Chartered.

Can anyone recommend anything?

[abcdefg]

#5 --

An accountant from my company suggested I go to Hong Kong this or next week to open USD or HKG account since it's absolutely free and anyone can do that (not sure if it's true). It's also a safe place to keep your money. He recommended HSBC and Standard Chartered.

You might be able to open an HSBC account in Bangkok. They have a large branch there as well as in Shanghai.

[diste01]

Yes they have branches but the system is totally different. If I want to open a US account I need to deposit at least the equivalent of USD16k and still pay for account maintenance around USD32 per month. If I pay in around USD33k it costs USD16 per month. It's a total rip off.

In HK I can do the same and have the account free as long as I keep the equivalent of USD1400 in my account.

The Thai system just doesn't appeal to me at all and it'd be easier to have this cash kept in HK anyway.

[abcdefg]

I see. Guess Hong Kong would be best for you then.

[diste01]

Thanks, any recommendations for China though?

[abcdefg]

#9 -- Sorry, I don't really know. Your situation is pretty complex.

[yhe2006]

#3

Thank you so much jkhsu! It cleared up a lot of questions! I thought the transaction fee was 3% but glad to know it's 1%. Thanks!

Just called B of A: the ATM conversion fee is 3% not 1% but a $5 fee is waived for partner banks such as China Construction Bank.

[jkhsu]

Just called B of A: the ATM conversion fee is 3% not 1% but a $5 fee is waived for partner banks such as China Construction Bank.

I decided to call Bank of America as well. Here's the answer that I got and it's consistent with the information from the Website:

1. Withdrawing RMB from a China Construction Bank ATM using a Bank of America ATM card carries an International Transaction Fee of 1% (not 3%).

2. Using the Bank of America ATM card as a Debit card for purchases in China carries a 3% International Transaction Fee.

I re-stated the above and the CSR confirmed this info. Best thing for the OP or anyone else to do is call and confirm for themselves. (In the USA: 1.877.833.5617)

[gato]

If you have a brokerage account at Fidelitu or TD Ameritrade, you can get a debit card from them. They don't charge a withdrawal or international transaction fee in China.

[msittig]

As far as I can tell my university credit union charges nothing for withdrawing from any Chinese ATM.

[Marakanka]

I opened a bank account here, makes life a lot easier. You dont have to carry so much cash around with you that way. It is not difficult to open one either, but sometimes you have to wait for a long time at the bank....

[diste01]

I'll open an account there for sure. What I'm worrying about is getting some really sh** debit card probably union pay that I cannot use abroad. Hence I thought of keeping cash in USD and transferring if necessary