How Much Can I Save By Finding a Cheap Provider?
Sending money abroad? The difference between a bank and a specialised provider could be more money in your pocket. Imagine saving up to £1,800 a year just by switching services. It's not just about the exchange rate; hidden fees can also eat into your funds. Whether you're making a one-time transfer or sending money regularly, knowing how to find a cheap provider can be a game-changer for your finances.
TL;DR:
- You can save a significant amount by choosing specialised transfer services over banks.
- Savings can range from £150 to £1,800 annually depending on frequency and amount.
- Always compare rates and fees for the best deal.
Real-world Example
If you're sending £5,000 from the UK to India, a mainstream bank might charge a 4% total fee, costing you £200. A specialised money transfer service could offer a 1% fee, costing you only £50. In this example, you'd save £150 on a single transfer. If this is a regular monthly transaction, your annual savings could be as much as £1,800.
Breakdown: Understanding the Numbers of Cheap International Money Transfers
- Market Rates: This is the baseline. It's the rate financial markets use, also called the interbank rate. You'll never get this rate, but your goal is to get as close to it as possible.
- Provider's Exchange Rate: Specialised money transfer services usually offer rates closer to the market rate compared to traditional banks.
- Fees: Banks and providers will either charge a fixed fee, a percentage of the amount, or both. This adds to your cost.
Action Plan
- Know the Market Rate: Familiarise yourself with the current exchange rate for the currency pair.
- Check for Hidden Fees: Look out for additional charges like receiving fees or intermediary bank fees.
- Use sendrater.com: For a quick and transparent comparison of rates and fees.
- Go to Provider's Website: Once you've selected a provider, visit their site to complete the transaction.
- Share Your Experience: Feedback helps the community, so let us know how it went.
By following these steps, you can send money internationally at the lowest possible cost. Your savings can add up significantly over time, especially if you make regular transfers.