... This option is only available to payees living in nations chosen for IDD eligibility IDD electronically deposits funds on the first business day of the month. Your payment will be converted from U.S. dollars to two business days prior to the U.S. payment date, using a wholesale exchange rate. IDD puts your money directly into your local overseas bank in .
In VietNam the very last thing you want to do is to have all this money converted in to Dong!
By having a "receiving" bank (with a InterNet savings account) in the US (with InterNet) and a second US bank (not the same institution as the first), where you have an InterNet Savings and Current account, you isolate your source of funds.
The first banking institution has to comply with US pensions payment rules (which are often changing) whereas the second institution has none of the restraints as the money is coming from another US bank.
If you reside in Canada, and have a U.S. dollar account, you may elect to receive your payment electronically in U.S. dollars. This option is only available in Canada.
Only US benefits paid in US dollars to one outside country.
This is to be avoided as it is , once here!
Nations chosen for IDD eligibility have met the requirements of the Federal Reserve Bank. Simply put, the banks and other financial institutions in those countries provide secure and trustworthy services and have systems compatible with transferring funds from the U. S. to your account.
This means the US Government has a back-channel from your bank to them. Do you really want the US Government to know everything about you?
In the interim what they can do is open an account with a local PI bank that has an affiliate in the states.
This is the US Government saying it's OK to use a US-based bank to receive payments before being forwarded on.
US Bank 1 (receiving): All US government benefits payments made here. You can transfer money to US Bank 2 InterNet Savings, pay your bills, etc.
US Bank 2 (intermediate receiving):[/b] This is an account in a different institution into which you transfer funds for forwarding to you. You can also use it to settle accounts (electronically) in the US.
US Bank 2 (disbursing):[/b] This account is your activity account. You don't get interest but and you use this as a main account.
1. By NOT having a plastic card associated with an account you INCREASE SECURITY. If all your banking (accounts A and B above) is done electronically, you have maximum security from someone using an ATM card to steal your money.
2. To transfer funds electronically between accounts requires you set up the payee account. Again this increases security. You want worry free banking. And make sure your institution isn't a "too big to fail" type, the US Government might not be around to save them, next time.
3. The reason you need a 'current' account is that your 'big' money is held away from the plastic. You have your money sitting in your 'B' Savings and a simple few strokes on the keyboard and money is then in your plastic account.
When you transfer money, the banks are out to score. The unwise use their bank transfer system (and score on exchange, etc).
The wise and smart use . SWIFT is a European-based international payments transfer system. It shuffles money at a bank level and delivers right to your branch.
The amounts transferred should be at least USD1,500. The fees are less, too. Around USD$15-20.
The banks have an Instruction Form which essentially is an instruction from you to your overseas bank to send money, via SWIFT, to the bank branch as you direct.
Carry on reading carefully.
Banking in VN is complex, a mess. It is run by fiat from the State Bank of VietNam who promulgates policies and changes often.
You are SWIFTing US dollars into the country and you want dollars out of the bank.
You need to have a bank guarantee that they will give you US dollars for a SWIFT transfer. You might have to set up a US dollar account. No problem.
The key thing is being able to get US dollars out. (This means not HSBC who won't do this)
The bank you select will give you a SWIFT transfer instruction. This will have a few spaces for you to complete. Your money will be transferred to a New York correspondent bank (of your VN bank) and within a day the money will appear over here in VN.
Dollars have a life of their own, in VN, as they can be sold to ForEx (Foreign Exchange) or even to businessmen who need dollars to settle overseas accounts.
This is why the HSBC likes to pinch your dollars and give you Dong. Score more money for the bank.
If you don't know businessmen who need dollars, you will. They have ways of finding you. In the mean time, sell your dollars to a ForEx shop and get over the bank exchange rate.
In the English Standard Version Bible (2001) at Romans 13.7
Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honour to whom honour is owed.
The US, Canada, the UK and a whole bunch of other countries expect to score tax off all your income. (VN has a tax agreement with most countries)
Against this world-wide tax system they have a system if credits. So if you pay homage to the US treasury you would deduct any taxes paid to another country - if they have an agreement.
As I carry three passports and therefore am expected to pay three income taxes. Fat chance.
So what I do is to pay tax on any income I generate within a country and keep quiet about the rest as well as where I am domiciled.
You have to make this decision. If your income is from the US and you don't pay income tax in VN, why bother filling in all that information about where you live, etc.
Keep it simple.
Follow Romans 13.7 - just declare your US income to the US government and forget it. You will unlikely get worked by the IRS unless you have big investments, but then you wouldn't be reading this.
If you have a Work Permit the VNese government expects to see tax.
So, if you are not working, just get a Residence Permit.
If you do work, and get a Work Permit, just pay up and ignore declaring any non-VN income tax. (Personally I have no objections to paying VN taxes, after all I do use VN facilities)
Much of my companies business is from overseas. When we bill overseas customers we use a proxy salesman in the country of sale and have the money paid into an account in that country which makes it easy for everyone.
We invoice the proxy salesman from VietNam, for bookkeeping purposes only.
VN tax is paid on the sale but the funds are held overseas. It makes it much easier to pay overseas accounts and, if you bank with some banks, you get to play with electronic doo-dads that generate access codes. I have about 7 hanging from my desk.
InterNet banking can be great.
So enjoy your pensions!