US Dollars USD interest? Which h account

Hey guys
Our business pays suppliers in USD
We have a certain amount of US dollars and have it in a US dollar account with a bank.
But the majors dont pay interest.
Is their a USD account with a major bank that pays interest?
Converting to Aud is not an Option

 

I import a few products from US places and always manage to convert from AUD to US with major banks instantly via online payment so I am flummoxed by that.

You could open an account with a US bank perhaps?

I would try ringing any of the big 4 they might be able to provide a product. My AUD bank account is getting little interest at the moment.

 

Nope.

US bank deposits are crap.

Best (and I mean best) you are going to get is around 1% for a cd ( american vernacular for term deposit).

Send it back to Australia if you don't need it for a while using Transferwise or OFX.

This said....if you are going to need it for transactional reasons.....eg eventually converting it back to 0.08% its going to cost you would be more than its worth.

On the other hand.....enjoy that almost all American checking/savings accounts are free and don't cost you anything and are FDIC secured up to $250,000 at no cost.

 

I also have a business hat I receive USD and pay USD. I put usd in a term deposit with Hsbc hk and get a interet of 0.3%...my us stock however has been giving a return more than 10%+ annually.

 

. 3% is that per annum if locked away for a year?

 

I feel bad that I gave you bad advice, just been checking Capital One will give you 1.5% on daily "at call" balances as long as over $10k (with 0.8% for amounts under this).

- Compare and Open a Savings Account | Capital One

Also looks like a 12 month cd is now up to 2.1% for 12 months. (eg locking it away for 12 months).

 

How hard is it for non residents to set up accounts?
Tax implications of generating income in US than transferring to Australia.
Is Capital One a large bank?

 

Not certain about Capital one but Wells Fargo it was pretty easy
Just had to be the city for a couple of days as they need to get your efpos/debit card printed
you pick up the card from the bank branch

 

Capital One is a major entity and all funds would be FDIC insured up to $250k etc etc

No idea about setting up remotely, im assuming its possible with documentation etc.

Could be wrong on taxes but I assume interest is tax free to the IRS based on this 30 second google.... - Tax Consideration When Venturing Your Hard-Earned Money in the US as Alien

 

I have fixed some US tax stuff with family members. Bit of a nightmare. The US and Australia did have a tax treaty in place so that people pay tax once when selling things overseas which you have to register for.

How that relates to bank accounts I am not sure and the IRS is not easy to contact from Australia. They preferred fax and postal contact in 2013.

My understanding is that if an Australian opens a bank account in the US and makes interest, they are still liable to pay tax on that interest in Australia.

I'm a little out of date so get qualified advice.

 

i held my in stake until they stop giving interest not sure what to do.. so i bought etfs .

nothing wrong with generating income with us.. just that u need to fill in some form. also they have different "tax" period to us in the au so be wary of that.. but apart from that your accountant should be able to sort u out, hence why i went with stake, because they are aussie company trading in usd, so their "tax" statement are adjusted.

 

I'll second Wells Fargo for ease of use and setup as a foreigner.

As for transferring to an aussie account with good rates and nil fees have a look at Citibank Aus.

 

All my US stocks have gone up (Apple, Facebook, baba) since the Facebook scandals and the trade war. Apple announced a big share buyback which caused the stock went up by 10%+.

 

Loads of options. Westpac Ord Minett handle most currencies, Offshore bank account.

The interest is taxable here and subject to withholding tax in the US.
IRS / ATO have good data sharing.

 

Paul.

Is their a simple way to keep USD in bank in Australia and generate interest?