The world may be getting smaller but can the same be said for international bank transfer fees? People no longer just holiday abroad – they live, work, retire and often seek medical treatment overseas. The amount of money being moved around the world has rocketed, so saving on bank fees for international transfers has become an important consideration.
Research by the Bank of England estimates the value of cross-border payments will rise by 2027 to almost $250 trillion (£200 million) – a rise of $100 trillion from 2017. But while digital technology has revolutionised the process and reduced the cost of moving money domestically, international bank transfer charges can still be prohibitive.
So if you’re looking to save on international bank transfer fees and enjoy the same affordable, frictionless solutions you get from domestic payment services, read on….
How much does an international bank transfer cost?
It is common to pay bank fees for international transfers, unlike when you move money domestically. And it’s important to understand the different fees that you might incur.
Fixed transfer fees
High-street banks typically have high currency transfer charges of up to £30 per transaction, while to receive money it usually costs between £2 and £7.50 each time. So if you send one payment a month for a year from abroad to your own UK bank account, you could easily incur annual charges totalling up to £450.
Percentage fees
When you search for an exchange rate online, you are likely to find the ‘interbank rate’. Banks use this rate to trade currencies with each other and it is not normally available to individuals or businesses.
Because foreign exchange isn’t a core offering for high-street banks, they will charge you a fixed percentage increase on top of the interbank rate.
While percentage fees might look small, they can quickly amount to a significant amount, especially when transferring large sums.
How long do international bank transfers take?
International bank transfers are more complex than domestic transfers and require a SWIFT code or IBAN (international bank account number) to reach their destination. They must also be cleared by Automatic Clearing Houses (ACHs), where they are manually checked for signs of money laundering or fraud.
The process usually takes one to four days, excluding weekends and holidays, when the ACHs are closed, unlike domestic transfers which are often instantaneous.
There is also more potential for error when it comes to sending money abroad, which can cause hold-ups and delays with your transfers.
What alternatives do I have?
Using your bank is not the only way to send or receive money from overseas. Currency exchange specialists offer products and services that focus on this area of the financial services market, so they are able to offer competitive rates and often have no transfer fees. This is because of the volume of currencies they are trading in comparison with banks.
Services such as the Telegraph Media Group International Money Transfers, provided by Moneycorp, can offer readers currency exchange with no transfer fees. This service also can source the most competitive rate from a panel of 18 liquidity providers for more than 120 currencies.
Why are banks more expensive?
The table illustrates some of the advantages currency exchange specialists have over the high-street banks when it comes to international bank transfers.
How do international transfers work?
International transfers usually go through the SWIFT (Society for World Interbank Financial Telecommunication) network, which can mean passing through up to three banks before arriving at their final destination. Once they get there, they need processing before they become available in the recipient’s account.
At each of these stages, there is potential for delay. Incorrect recipient details, time zones, the banking infrastructure of the destination country, public holidays, and anti-money laundering and fraud regulations all might hold up a payment.
By using a currency specialist such as Telegraph Media Group International Money Transfers, provided by Moneycorp, you can ensure you have taken every measure to ensure your payment arrives on time. Moneycorp has the expertise of the foreign exchange market to help you understand the most efficient ways to transfer money, the nuances of destination currencies and countries’ banking systems, and the relevant holidays to be aware of. Your account manager will also ensure you provide all the necessary documentation to comply with regulations and prevent any delays.
The Telegraph Media Group International Money Transfers team will keep you updated throughout the process so you know where your money is every step of the way.
What details do I need for an international bank transfer?
As we mentioned, having all the correct information to send an international transfer before you start is essential.
You will need some extra details when sending money abroad compared with domestic transfers. For transfers to most countries, this will include the following:
Some international transfers will require further details if they are in a high-risk jurisdiction. South Africa, for example, requires documentation to support the reason for payment.
Sign up with a currency specialist today
The Telegraph Media Group International Money Transfer Service is provided by Moneycorp, which offers international transfers at competitive rates in more than 120 currencies. With Moneycorp, you also have access to a team of currency exchange experts who will talk you through the specialist products and tools you can use to ensure your money goes further, helping you to navigate the fast-moving currency markets with confidence. There are no online transfer fees and Moneycorp can get your money to where it needs to be quickly and securely.
You can find out more about the products and services the Telegraph Media Group International Money Transfer Service offers here.
- Open an account now. to send money abroad with no transfer fees via the Telegraph Media Group International Money Transfers
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Be aware of currency risk.
None of the information contained in this article constitutes, nor should be construed as financial advice. TTT Moneycorp Limited (company number 738837) is registered in England. Its registered office is at Floor 5, Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. Moneycorp is a trading name of TTT Moneycorp Limited, which is authorised and regulated by the Financial Conduct Authority for the provision of payment services (firm reference number 308919). Date of approval 25/05/2023
