This morning I visited my Spanish bank to open a sterling account to receive my U.K. pension.  I did this in an attempt to try to avoid receiving my pension in euros and losing a large percentage every month due to the low exchange rates.

A month or so ago, I consulted the international pension department in the U.K. and asked them if it would be possible to receive my U.K. pension in Spain in sterling rather than euros.  I was told that this would be possible, and had to submit details of my new account.

When I spoke to the pensions department this morning, I was now informed that all pensions paid from the U.K. to Spain directly into a Spanish bank account must be paid in euros.  I appreciate that I can open a new account in Gibraltar to receive my U.K. pension in sterling, but cannot understand why my pension cannot be paid directly into my sterling Spanish bank account. 

Any comments would be greatly appreciated.

Spain is in the euros zone and all money would have to be in euros .....  i come across this befor and trying to fine out where and when , so when i get this INFO i post it up

think its a way to keep the Euro hight

donkeyoatay - 28 October 2008 04:58 PM

This morning I visited my Spanish bank to open a sterling account to receive my U.K. pension.  I did this in an attempt to try to avoid receiving my pension in euros and losing a large percentage every month due to the low exchange rates.

A month or so ago, I consulted the international pension department in the U.K. and asked them if it would be possible to receive my U.K. pension in Spain in sterling rather than euros.  I was told that this would be possible, and had to submit details of my new account.

When I spoke to the pensions department this morning, I was now informed that all pensions paid from the U.K. to Spain directly into a Spanish bank account must be paid in euros.  I appreciate that I can open a new account in Gibraltar to receive my U.K. pension in sterling, but cannot understand why my pension cannot be paid directly into my sterling Spanish bank account. 

Any comments would be greatly appreciated.

In Spain you can easily open a sterling or US$ account ... I once did it a few years ago. The point is:

- when you need to collect your money they use that day exchange rate and give you euros
- there is a huge difference between exchange rates applied when you deposit and when you collect your money
- you can use your foreign account to pay or receive by money transfer ... but the bank will apply always a commission. When I opened my US$ account it was 5% and after long discussions and a bit of “blackmail” (i.e.: I’ll move my money to another bank) we agreed on 3%.
- usually accounts in foreign currency include higher fixed commissions than those in euros. My US$ account cost me 35 euros/year while the regular one cost 14 euros/year.

What I was commenting on was that you can not have your UK pension paid into a Spanish based sterling account! You are obliged to receive ?uros.

Evidently things have changed: I could receive payments in US$ on my US$ account ...
Maybe it’s a new regulation that has changed in UK?

its some to do with trading stg to euros to stg keepping the pond and euros proped up
, not 100% sure on this but i come back to you when i found out whats going on

This restriction ONLY refers to receiving a UK pension! According to the pension dept in the UK you have to receive your pension in the currency where your bank is situated, in my case Spain and I have to accept ?uros regardless that I have a Spanish based sterling account.

EDIT: Never mind. I just reread the bit about using Gibraltar.

donkeyoatay - 28 October 2008 04:58 PM

I appreciate that I can open a new account in Gibraltar to receive my U.K. pension in sterling, but cannot understand why my pension cannot be paid directly into my sterling Spanish bank account.

So   what is the advantage of keeping your money in sterling? Do you not need the euros?

The reason I would like to have my pension paid into a sterling a/c @ Santander is that I would like to wait until the exchange rate is better. Currently I am loosing out every month when it is exchanged @ a low exchange rate.

No I do not have a UK bank a/c as I have not returned to the UK in over 28yrs.

Sorry, but do you seriously believe that the Euro/?  exchange rate is ever going to recover…?
Gordon Brown when Chancellor stated that if ever the ? reached 1.30 he would consider Gt Britain adopting the Euro…
Well sorry Gordon, but its been considerably less than that for more than a year evening out at around 1.25.
There is absolutely no way that the Pound will ever get back to the heady days of 1.6, so why waste your time…
Of all the worlds currencies the Euro is now the leader, not the US dollar, not the Pound Sterling but the Euro…
Many shops in the UK will now accept the Euro as do many shops in the USA.

Putting it simply, no-one outside of the UK wants Sterling…
And the Dollar is only good for the purchase of Arms and Oil…

4/11/08; 1.22 and still falling ...

I think you are missing the point here. My original question was why can’t I receive my UK pension paid into my Spanish bank, into a sterling account. Currently all UK pensions paid to UK pensioners living in Spain go through Citibank and are converted from sterling to ?uros. The rate obtained is not competitive and I am sure that most recipients could get a far better rate if they shopped around. I know that personally I can get a better exchange rate with my bank Santander.

The stupidity of it all is that if I opened a sterling a/c in Gibraltar or the Channel Islands I can have my pension paid in sterling. Why therefore can I not receive it here in sterling.

So the problem is in UK. Have you asked Citibank??

Yes the problem is in the UK. The pensions people just say that it is government policy. What could I say to Citibank? They are just acting on instructions form the pension dept.

therefore I’m afraid there’s nothing you can do about it…