These tips from currency experts may make a difference of hundreds, or even thousands, of pounds when you transfer money to your new home
If you’re looking to move abroad, you might find that you need to move your money overseas or back home regularly. Regular bank and high street money transfer services are rarely the best option. Specialist currency providers often charge lower fees and offer more competitive exchange rates saving you hundreds and sometimes even thousands of pounds.
We’ve asked our currency partners, FC Exchange, to give you some tips on the best ways to make regular payments without breaking the bank, as well as how you can capitalise on large one-off transfers.
Get a Rate that Gives You More
One reason you might need to move money abroad regularly could be for a pension or a property, and it may mean you’re moving money monthly or quarterly. So, what’s the best way to get a good exchange rate when you’re moving money overseas often?
Firstly, you’ll want to be sure you’re getting a great rate, so compare what your bank has on offer to what you can get from a broker. It might seem like only a couple of digits, but calculating the difference can be quite eye-opening. For instance, if you wanted to move £10,000 each quarter to Europe you might be offered an exchange rate of 1.11 from one provider, and 1.07 from another. Some quick calculations would show that a rate of 1.11 would provide you with somewhere in the region of €11,100, while a rate of 1.07 would only see you receive €10,700.
The difference of €400 per quarter would quickly add up to €1,600 per year!
Know Your Fees
Fees are another way your money transfer can be less cost-effective. Some international payment providers might tag on a charge of anywhere up to £30. That means each time you send money overseas, you’ll be liable for the fee, which is especially unfortunate if you’re getting a less competitive exchange rate as well.
Check before you make a transfer whether you’ll be charged a fee to be sure you know exactly how much it’ll cost you. FC Exchange offers fee-free transfers over a minimum transaction value of £3,000.
Secure a Rate in Place
If the pound to euro exchange rate is suddenly tumbling, you might be worried you won’t get as much currency for your money. Especially now with Brexit, there is a lot of opportunity for the GBP/EUR currency pair to move. Movements can be sharp and quick, and sometimes it can take a while for a currency to recover from a fall. With some brokers, like our partners, you can lock-in an exchange rate when a currency pair is trading well, and secure it for up to two years.
So, if you want to make a sizeable overseas payment for a house purchase, you’ll be able to take out a forward contract and capitalise on an upswing, while protecting yourself against adverse movements in the future. This is a great idea if you want the reassurance of knowing exactly how much currency you’re getting for your money.
If you want to discuss sending your funds abroad and find out how you can get more for your money, visit fcexchange.com or call 020 7989 0000. Don’t forget to mention PSS International when you call to get great value rates and services reserved for our customers!
You can also visit our Migration Services page for details of our other currency partners – we only recommend three. You will also find other trustworthy resources and suppliers there to help assist with your move overseas – everything from visa advice, job opportunities and travel discounts.