From overseas weddings, to purchasing property abroad, to sending money to contacts or family members living in a different country, international money transfer is a reality that most of us will face at some point in our lives, and for many of us, it’s a regular occurrence.
So it’s a good idea to get to grips with the basics of sending money overseas. In today’s tech savvy world it is easier than ever to arrange an overseas money transfer, but finding the best deals can be a little trickier.
It has recently been estimated that Brits are overcharged to the tune of £400m every year as a result of choosing the wrong money transfer service. So first, let’s look at 3 great ways we can save money when we transfer money abroad.
Use a ‘disruptive’ money transfer service
By ‘disruptive’ we don’t mean difficult! For years, banks and high street money transfer services like Western Union were the only options available to those wishing to make an overseas money transfer, but things are very different now.
Services like TransferWise, Azimo, and Revolut, have been created by people just like you, who want to transfer money overseas without paying a substantial fee, and benefitting from the real market rate when it comes to exchange rates. So, if you like your technology, try a more modern service. All of these services pride themselves on offering cheaper fees and better rates that high street banks and Money Transfer Operators (MTOs).
Use a money transfer app
Yes, now you can transfer money overseas using just an app! With digital wallets all the rage in today’s market, a handy money transfer app, such as those offered by TransferWise, World First, or World Remit, means you can make transfers on the go, at your convenience, and still benefit from the best rates.
Use a money transfer price comparison site
Using a price comparison site like The Money Cloud makes perfect sense if you really want to find a deal that suits you the best. Simply key in the amount you want to send, and the currency you would like to send from, and to – and the comparison engine does the rest!
You’ll be able to compare rates, fees, and importantly, speed. If you need to make a transfer in just 24 hours, there are services that can do this for you, and you can find them all using a good comparison site.
Money Transfer Methods Best Avoided
Now, here are 3 services that may be best avoided. You may be tempted to do your overseas money transfer in one of these ways, perhaps because you have always done it that way, but ultimately, you are likely to end up paying more, often for a less efficient, and more time consuming service.
Use an ATM overseas
It can be convenient to simply use your card to withdraw money when overseas, but your bank may charge a fee for this, and the exchange rate will not be favourable.
Transfer money between bank accounts
Again, this tends to play into your bank’s hands. This is not a core service for high street banks, and as such, they do charge fees and do not use the lowest market rates, as they have to cover the expense of this auxiliary service.
Use a High Street Money Transfer Agency
It’s time consuming, and expensive. There is usually a better way. These kinds of services may be useful only in an emergency, or if money is no object.