Foreign exchange specialist Currencies Direct has lifted the lid on the uncompetitive exchange rates on offer from the leading high street banks when it comes to transferring lump sums to a foreign bank account. On average someone wanting to buy €100,000 will lose out by £1,221 when opting to transfer money with a high street bank over a specialist foreign exchange broker, and that’s before transfer fees charged by all the major banks are taken into account.
Currencies Direct simply called a selection of high street banks and specialist foreign exchange brokers and asked what rate was available to ‘buy’ €100,000. Please see below for a table outlining the different banks / brokers called and the exchange rates offered by each.
Mark O’Sullivan, director dealing at Currencies Direct comments, “The high street banks should not be the first port of call for anyone making an international money transfer. As the table demonstrates overseas property buyers, or indeed anyone that has a requirement to transfer a large sum of money to a foreign bank account, will lose a significant chunk of their cash through uncompetitive exchange rates. This is because the banks do not have access to ‘wholesale’ exchange rates and simply can’t compete with specialists. Furthermore customers not only have to contend with all the usual inconvenience of dealing with a bank but also transfer fees, which have increased in recent times despite the fact that international transfers represent no real cost to the banks whatsoever.”
The high street banks were also discovered to be offering a far from first-rate service on regular transfers. Regular transfers are used by British expats who require monthly or quarterly money transfers from their UK bank accounts for a variety of reasons from paying maintenance on an overseas property or meeting mortgage payments to just transferring a UK pension to help meet living costs. However, if they choose to make these transfers through their banks, Brits living abroad are faced with losing a noteworthy sum. Please see below for a table outlining the different charges offered by the high street banks and specialist foreign exchange brokers.
O’Sullivan continues, “If you are a retirement aged Brit living abroad or a UK resident with overseas properties to manage, you should not be charged to transfer money internationally. These transfer charges are totally unnecessary and add up very quickly over the course of a year. People should also be aware that they will receive an even less competitive exchange rate from the high street banks on regular transfers, closer to a holiday money rate, due to the traditionally smaller sums of money involved. Then there are the receiving fees that many foreign banks charge – which can be anything up to £100 in the case of some Spanish banks. A good specialist however will have agreements in place with the major foreign banks to reduce or eradicate these fees entirely.”
“Brits that need to make international payments must wake up to the benefits of shopping around and look beyond the perceived sanctity of their banks. They can literally save thousands on exchange rates and hundreds on transfer fees.”
Fortunately a growing number of British overseas property buyers are embracing these opportunities to save money. Please see below for two case studies, both of whom are available for further interview.
About Currencies Direct
Currencies Direct is one of Europe’s largest independent foreign exchange specialists, offering competitive exchange rates to businesses and consumers alike. By dealing with the currency markets directly and focusing on foreign exchange and international payments exclusively, Currencies Direct offers rates that banks and other financial institutions find hard to match, let alone beat.
Tel: 0845 130 8148 | Email: london@currenciesdirect.com | www.currenciesdirect.com
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