Could I secure the exchange rate for my bonus in advance?

Q) I’m an investment banker. How could you help me convert a US dollar bonus?

Greig: At Investec, we have a team dedicated to working with investment banking professionals, which means we’re familiar with foreign currency income, as well as discretionary and deferred pay.
 
As foreign exchange dealers, we aim to support our clients by monitoring markets, offering call alerts and placing market orders. We also offer the ability to hedge future currency exposure.
 
Alongside our transactional banking accounts, we offer instant-access cash deposit accounts in 15 currencies, including interest-bearing Euro and US dollar accounts. From here, you can make transfers of up to £100,000 equivalent and view and manage your balances online.

Q) Could I secure an exchange rate ahead of receiving a bonus?

Greig: If you are looking to hedge future currency requirements, we offer FX Forward contracts, which could be used to lock in a rate for transactions up to 24 months in advance of the funds being received. In doing so, you may value the certainty they provide or may secure a potentially opportune level in the market.

Where the exact date of a payment is not yet known, we could offer Open Forwards which would allow a trade to be settled within a pre-agreed window of time.

Q) Can I make foreign currency payments using online banking?

Greig: Yes, for added convenience, our private bank clients can make international payments worth up to £100,000 using Investec Online banking or the Investec mobile app. We increased the limit – which was previously £20,000 – after listening to our clients’ needs. Between 8am and 5pm, you would have access to a live exchange rate.

Q: How long does it take to open an Investec Currency Access account?

Greig: Opening an account with Investec usually takes approximately 15 minutes and you can apply online.

Alongside your private banker, our FX team would build a long-lasting relationship with you. We specialise in working with clients with annual income in excess of £300,000.

You may also be interested in other elements of our private banking experience, including bespoke mortgage lending, which could enable you to include foreign currency income in affordability calculations.

Q) What factors are currently influencing exchange rates?

Greig: The key theme in financial markets has been the monetary policy response to inflation, but with price pressures cooling and central banks potentially nearing – or even at – peak rates, attention has turned to the health of underlying economies. With US Treasuries nearing multi-year highs and the US economy looking more resilient than its counterparts, we’ve seen the US dollar outperform of late.

Important information:

Minimum eligibility criteria and terms and conditions apply. You can only book an FX Forward which is for an underlying personal or commercial spending purpose. You cannot book an FX Forward for investment or speculative purposes, for example in order to achieve a gain based on movements in exchange rates. Also, you cannot book an FX Forward on behalf of any other person. Additional terms and eligibility criteria apply for FX Forwards.

Please note that our mortgage lending facilities are only available to UK or South African residents aged 18 or over and are subject to status.

Your home may be repossessed if you do not keep up repayments on your mortgage.