Sending money back home? If you are, make sure you avoid using the bank. A recent study has shown that sending money outside Australia via bank-to-bank transfer is a sure-fire way to break your budget. Believe it or not, unexpected fees and bad exchange rates are just some of the problems you will encounter should you decide to use banks to send money back home.
A research project commissioned by CurrencyFair, an online foreign exchange, has revealed that 88% of 6.5 million people in Australia who have experienced transferring money overseas believe that banks charge too much. According to the report, aside from a “massive margin on the exchange rate,” amongst the causes of these hefty charges are hidden fees, delays, and getting double-charged by banks on both sides.
If you don’t want your money to get trimmed on its way to its destination, what should you do? What are the alternatives to using banks to send money back to Ireland?
These days, banks no longer have the monopoly of international money transfers. As a matter of fact, it is now much easier to send money abroad through a non-bank service. OzForex and CurrencyFair are just some of the online-based money transfer companies in Australia that you can use. Online-based money transfer companies offer more competitive rates and they provide customers with better options than those offered by banks.
To send a significant amount of money from Australia to Ireland or to any other part of the world via an online-based money transfer service, you will need to open an account and verify your identify.
Of course, the amount of money you’ll save will depend on how much you’ll send. Also, take note that each money transfer company requires a minimum amount of money to be transferred. OzForex has $1,000 minimum for transfers, World First has $250, while CurrencyFair has 5 Euro or equivalent. However you can get your first trade for FREE with this link with CurrencyFair :)
As for fees, traditional transfers with banks like ANZ and NAB charge at least $30 for international money transfers. Along with that the exchange rate is normally a lot lower than you would expect.
If you haven’t already read our money transfer guide be sure to check it out here.