Bank Deposit in USA?


#1

I want to deposit money to my Citibank Account in USA.

All I needed to enter was the account and routing number in order to add myself as a beneficiary in the Revolut-app. Quite easy.

But my next question is. App says it will take 2 days for a standard free transfer. What kind of transfer is this and will there be a fee from Citibank? Normally they charge a 10 USD fee for incoming wires.

However, with direct deposits, there are no charges.

Anybody have an idea what I can expect? Any fee from Citibank?


#2

hm how did you add your US bank account to Revolut? As far as I can’t see USA is not available from the dropdown list.


#3

I assume it is sent via SWIFT. Check FAQs for some insights.


#4

It certainly is. I just chose USA and entered my details.


#5

If it is send by SWIFT how does it get the information then?

I only enter the routing and the account number.

But if indeed it is SWIFT then there will be fee for receiving funds - 10 USD for citibank.

I also tried to set up sending to a bank account in Denmark. This is done by entering the IBAN account number and BIC/SWIFT address. So in this case it seems more clear that it is SWIFT.

Most banks in Denmark charges a fee for receiving funds from abroad - no matter if it is EUR or DKK. Danske bank charges 50 DKK this (around 7,6 USD or 6,7 EUR).

So quite a weakness with Revolut. I would really encourage them to do something with this. With PayPal it is free to transfer to your local bank account. Why can’t it be with Revolut?


#6

I am a die hard fan of Revolut. I also use PaySera. Intend to lean mainly on Revolut. But PaySera is a EU account. IBAN in your name. Both Revolut and PaySera work in perfect harmony. I have had no major issues. Everything is quite smooth and reliable even when I have put wrong details in one time. Anyway, by transfering from Revolut to PaySera is completely free using EUR. Once in PaySera. It might be worth checking with your Danish bank if they would charge you a fee if it is within SEPA and with using a EUR to recieve from a LT IBAN?


#7

Well, this is a side effect of the EUR area and SEPA. Not Revolut charges you for transfers, the other banks do. And customers with EUR accounts in the SEPA area profit from a very competitive environment where there is no difference between national and international transfers anymore.

Revolt is a completely different business model. PayPal makes a profit by charging merchants a relatively huge fee for their services. They also make money by applying bad conversion rates for international payments for their personal users. They set up a worldwide structure of accounts to pay out their customers and to reduce their own costs.

Setting up a similar infrastructure would be very costly for Revolut. It might be hard to offer a basically free product with good exchange rates and offer all sorts of other costly services like national accounts for free in addition.

I am not saying that they don’t get there. I am not saying they shouldn’t get there. They might eventually when they become more international. But right now, part of why they can offer great value for customers in SEPA/EUR nations are the very special circumstances.


#8

Even customers with EUR account in Denmark (which is part of SEPA) are charged 50 DKK for receiving funds through a bank transfer. How is that competitive?


#9

I believe the SEPA regulation says that a bank can’t charge you more for an international transfer compared to a national one. The problem now for countries like UK and other places that are part of SEPA but do not use EUR as their main currency is that they have national fees for SEPA transfers. In UK, the average bank charges a fee for a national SEPA EUR transfer. Therefore they are allowed to also charge for international SEPA EUR transfers. A faster payment national GBP transfer is usually free. In most countries that use the EUR, international SEPA EUR transfers are basically free for consumers.

That was the point I was trying to make: It is hard to compete with that. And customers in SEPA/EUR countries profit a lot from this. But it is the national banks in the non-EUR countries that make these prices.

@plandersen maybe it is a good idea to change bank? Out of curiosity, I’ve just checked Danske Bank’s price list. It says 20 DDK for a EUR SEPA transfer there :wink: