I myself have had to find out for a long time what a dollar bill actually entails. Even the assistants at the bank’s counter did not know about it. Even worse, they had provided me with the wrong information, which cost me at least 2000 euros. Suddenly I saw that my investment was no longer profitable.
To make sure that people no longer make the same mistake or at least clearly know what a dollar bill is, I want to briefly share my knowledge that I have gathered with the world. There may still be things that are not complete. Please post a comment below so that I can view the information and improve it.
What is a dollar bill?
What initially told me? That is that the dollar account will have the same account number as the current account that I already had. That is partly true but also completely wrong. When you look through Homebank, this account has exactly the same number as the bank account number of your current account. But what the customer does not see are the hidden numbers that should actually be there.
The numbers that actually indicate a dollar bill are not visible to the customer. You actually get the impression that it is just a sister account into which the dollars are deposited. In addition, I have a dollar account whose account number definitely does not match the dollar account that I opened in Belgium.
What you as a customer do not immediately realize
I saw my gains from my investment go wrong. Because transferring to a Belgian / Dutch bank account number entailed additional costs (administrative costs) plus the commission that the banks deduct for converting dollars to euros.
What is a dollar bill then? It is a type of investment in dollars. But although I had not purchased any dollars and these were simply deposited into my account (Dollar to Dollar), I certainly did not see this as an investment account. Moreover, that has not been communicated to me at the bank itself at the counter either.
What benefit did I get from it? Anything !! Because for the apartment that I had in America, I had a separate dollar bill (which you must declare to CAP) where all the bills and rents came on. So in the first place I don’t understand why my real estate manager advised me to open a dollar account in America. So you could just as well have opened a dollar account in Belgium and thus make the payments without any additional costs that you would have in America.
It is of course true that you cannot of course transfer large amounts from a bank in America to a European account. To do this, you must register locally at the local office in America. So the only reason is that when you sell, you possibly open a second dollar account into which the money from the sale is deposited, so that you can use your money in full.
Is that not necessary and can you do the transfers in pieces? Then do not request a 2nd dollar bill. I still have to go after that. There is a good chance that you will have to report this account to the CAP, although it seems that you have a Belgian / Dutch account number.
Another disadvantage is that you cannot withdraw money from a Belgian / Dutch dollar bill (let’s call it that way) in cash or cash !! It is therefore purely cute money, numbers that remain in the account as numbers. You can use that account to make a few transfers. In other words, if you want to do something with it then it will have to be done in dollars because otherwise you will incur costs.
The costs exchange rate bank
You also receive no interest on a dollar bill. As far as I again you pay no costs on it but I have not found any online information source. At ING, for example, it is also not included under ‘costs for the most common bank transactions’. What is included is how much you lose when you have the dollar converted into euros. Maybe make a first guess yourself? …. At the? At ING you lose 3% of your money !! That is a very nice commission from the Good bank, a nice and quick gift.
But you see, if you generate nice income and you have it placed on a US account in Belgium / the Netherlands, then you have lost an extra 3% commission which I think is pretty much. And so they themselves do not pay 1% interest on a savings account. I don’t even dare to look at the current account !! It is just something that you do not take into account when investing as a foreign property. So do not start if you do not opt for a long-term vision. Only in this way are the costs relatively low in the long term. Otherwise it would have been worth the investment.