Chile Forum

it likely has more to do with the conversion. Most banks would have to convert to dollars then Canadian pesos to get their money, and the likely do not maintain close relationships with Canadian banks.

I just had a client wire money from Switzerland in to Chile, and the wire had to go through U.S. dollar exchange to get to pesos. The client even works at the Forex desk at major bank in Switzerland, and still could not find a bank that could do it. So, essentially no matter how something gets routed, it almost always has to go through a U.S. bank out of Chile. I could see the expense and hassle not being worth it to Banco Estado. Remember, checks by law are tied to credit in Chile.

yep, pretty much vick; but, you can visit the exchange rate thread for more than the fine details on that.

On the other hand, good luck trying to cash a check from the United States in the United States, let alone a check from Chile in the States.

Gloria wrote:The bank ( Banco de Chile ) will hold the check until it CLEARS FOR 2 WHOLE MONTHS, then it can be deposited immediately to the account.

Did you see the money come out of the originating (from) account substantially before those two months elapsed?

I'm curious what the break even point is between wire transfer and cashiers check (with 2 month wait). For example, if you earn 3% on $10k US, that's $25 a month. If the money came out of the originating account close to the start of those 2 months, you'd be out $50. At that point, a wire transfer looks better. (Especially if the originating account is Washington Mutual with no fee for originating international wire transfers). But, if it it didn't come out until the end of the 2 month wait, nothing lost.

Edit. I just realized that was a dumb question. The money comes out of the originating account when the check is created. So, that means $10k US is about the break even point between depositing a cashier check (two months lost interest), or paying the fees associated a wire transfer. (Plus or minus, depending on how much interest someone can earn, and whether they pay a wire transfer fee at the originating bank.).

Mark

j. Ro wrote:Try talking to someone at ScotiaBank Sud Americano. It is a subsidiary of the Bank of Nova Scotia, a canadian bank (and the one I use, nothing like free withdrawls from my Canadian account when I am in Chile). They most likely have the closest ties to anyone in Canada and would probably be your best bet.

Not sure about that bank, but I had similar thoughts about Citibank in Santiago. I thought that would be an easy way to access a US Citibank account. I talked to them about it and they said there's nothing shared between the two banks except the name. No advantages. Everything works just like a non-Citibank bank interacting with a US Citibank. I was told the only way to get money would be to use the ATM machine out front.

I could have been told wrong. That was just my experience. The Canadian bank might be different.

Mark

RWS wrote:depositing an ordinary customer's check instead of the cashier's check might be better: the depositing bank runs no risk, as the funds aren't available to the customer 'til the check clears; but one saves the charges for the clearing bank's own check or for a wire transfer, and, best of all, one can be armed with information on the actual period for clearance -- the better to press one's point with the depositing bank, after the fact, for retroactive conversion or payment of interest.

I'll try that soon. I'll be surprised if they accept a personal check drawn on a foreign bank. For one thing, I suspect the underlying process is the same as a wire transfer. (Speculation: The check goes to the Chilean automated clearing house. The clearing house mails it to the US clearing house. The US clearing house processes it like any other ACH transaction. But, wires the money to the Chilean clearing house.).

If Chilean banks aren't required to accept such checks, I don't see what their motivation would be when it should end up costing as much as a wire transfer. That's why I thought it would be reasonable for them to sit on the funds for two months, to recoup their costs.

But, I'll try it.

Mark