Several readers have asked about depositing foreign currency into their California bank account. Here's what we found.

Can a U.S. citizen have a checking or savings account where foreign currencies – say European euros or Chinese yuan – are held and deposited, without being converted to U.S. dollars?

– David L., Cincinnati, Ohio

I do some buying and selling overseas and recently received a "eurocheck" from Germany for 2,950 euros, which was about $4,630 at the current exchange rate. My bank branch in Sacramento took the check and said it would take five to 10 days to process. When the German check was finally deposited into my account, it was for $150 less than the full amount. I was charged fees no one told me about. This seems outrageous. Is there a better deal out there?

– Paul C., Sacramento

When it comes to foreign currency, there's no single policy among California banks on how – or even whether – to accept foreign funds.

"It's on a bank-by-bank basis: Some banks will, and others do not," said Beth Mills, spokeswoman for the California Bankers Association.

That means you have to do your homework. For any type of transaction involving foreign currency, call several banks or financial institutions to compare their requirements, rates and fees.

As for the first question, larger banks are most likely to let you open – and hold – an account in foreign funds.

Bank of America and Wells Fargo, for instance, allow their business clients to open such accounts through their foreign currency departments. But it's usually for large amounts, starting at $100,000 or more. Check with individual banks on their requirements for minimum deposits, etc.

What if you walk into a bank with a pocketful of pesos or euros, say from a vacation or business trip to a foreign country?

Most banks will convert it for you into U.S. dollars, but you'll be charged varying fees based on the daily conversion rate. (For a handy conversion calculator, go to www.finance. yahoo.com/currency.)

Because fees vary, the California Bankers Association recommends getting at least three comparison quotes.

Bank of America, for instance, will exchange its customers' foreign currency but only paper, not coins. BofA spokeswoman Colleen Haggerty said the most common requests are for Canadian dollars, British pounds and euros.

At smaller banks or credit unions like Sacramento-based Golden 1 Credit Union, it's checks only, said CEO and President Teresa Halleck.

"If somebody came back from a trip to Europe with euros, for instance, we couldn't deposit them, either in coins or paper currency," Halleck said.

But if a customer comes in with a foreign check, say from an eBay transaction with a buyer in Switzerland, the credit union will deposit it, according to the fees and conversion rates charged by the overseas bank.

"We don't charge any conversion fee," Halleck said. "The member would get whatever exchange rate is determined by the bank upon which it's drawn, on the date it clears."

Regarding the second question, it's unfortunate you weren't quoted a fee for that eurocheck, because different banks charge different rates, depending on the amount of the check and their built-in fee structure.

As you discovered, it isn't cheap.

Travelex Currency Services Inc. says it charges a $30 service fee for overseas checks above $100, plus whatever the foreign bank charges. At Wells Fargo, it's $45 in most cases.

"Collection (on a foreign check) is very, very costly. It's a last resort," said Nilesh Kumar, spokesman for Travelex on Sacramento's Capitol Mall. "A wire transfer is the easiest and cheapest," although it requires giving the other party your banking information to execute the transfer.

Or take Halleck's advice: "If you're buying and selling overseas, get payment in U.S. dollars so you know exactly what you're getting. Let them take care of the exchange rate so you don't have to take the risk on this end. In today's economy, every dollar counts."

More on unclaimed property

Last week's column about backlogs at the state controller's office for those seeking long-lost funds turned up a little-known quirk in the system.

Turns out it might not be enough to simply type in your name at www.ClaimIt.ca.gov when searching for forgotten bank accounts, utility refunds, missing stocks, etc. An account that belongs to you might be buried in the state's online database under generic terms like "The" or "Trust."

We heard about it from a California woman now living in Florida who's made it something of a hobby to plug in the names of clients.

When we typed in the word "The," for instance, it turned up more than 8,300 entries. "The Trust of Joe Schmoe" might be cross-referenced by that last name, but not always.

Blame it on computers. Because of the way that banks, utilities and other entities feed their data on unclaimed funds to the state's computer system, the controller's office says some first and last names might get misdirected.

"With 8.2 million accounts, it's possible that some names won't appear where they should," said controller's spokesman Jacob Roper.

He said owners of unclaimed property get two notices in the mail when dormant accounts bearing their name are sent to the state. If you're having trouble locating unclaimed property, Roper recommends calling the controller's hotline at (800) 992-4647 for assistance.

Have a personal finance question? The Bee's Claudia Buck can help you find answers. Reach her at (916) 321-1968.