Have you ever had to transfer money into an international account? Or maybe you’re getting ready to send money abroad? You wouldn’t be alone as 8 million UK adults have sent an average of £5,236 internationally in the last two years.
To help ease the hassle, as well as the trepidation you may feel when sending money overseas, we’ve outlined some tips that will ensure your money is secure and you’re getting the best deal.
First off, how do foreign transactions work?
Money transfers involve sending money to an individual or organisation in another country using a different currency. When you transfer money, it’s subject to an exchange rate, which determines how much money is actually paid. Each transfer option will also have a fee and commission associated with it.
We recommend to check the foreign exchange rate, and ask if the currency is likely to fluctuate. You can check the current exchange rate on XE.com for the rate used when banks trade with each other.
Exchange rates are also dependent on providers, which is why you should shop around and consider different options when looking for a company to complete your international money transfer.
Traditional providers include banks, high-street transfer companies like Western Union, and foreign exchange brokers. Alternative methods include debit and credit cards, foreign bank drafts, PayPal and Transferwise.
Additionally, you should check the commission costs and fees as these will vary between providers. It’s important to note that some banks claim to be commission-free, but offer poor exchange rates in return.
For more on transferring money abroad, Sainsbury’s Bank guide offers useful information and tips for a smooth transaction between international accounts.