Friday, 29 July 2011

Top tips on currency exchange

For those of you who need to transfer money to relatives overseas or to make payment on an overseas mortgage it is worth checking out if you are getting the best possible deal. One thing is for certain, the banks are not offering the most competitive rates.

It is worth bearing in mind that transfering money is usually cheaper to do online than in the bank or store as there are less staffing costs involved. If you are going into the bank, a charge of £25 - £40 is likely. 

If you compare this to Money corp, a fee of £15 applies for a telephone transaction and online transfers are £10 per transaction. Furthermore, if you take advantage of their regular payment plan, fees are as low as £4 per transaction.

The rate of foreign exchange is also worth considering. Rates from banks are usually a few points worse than using a broker such as Hifx, on the flip side however is whether the low transaction fee means a worse exchange rate as that is where the brokers can make their money. 

Confusing isn't it?

Therefore, it is worth worth looking at the full picture of costs and exchange rates and hopefully it will make your money go further.

Good luck!

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