Big banks foreign transfers rip off
Need to transfer money abroad? Well, you should probably give the big Aussie banks a wide berth.
The ‘Big 4’ banks international money transfer fees are far heftier than online providers – and could cost you as much as $500 more on a $10,000 transfer into British pounds or Euros.
Online money transfer providers including World First and CurrencyFair are over 5 per cent cheaper, on average, than ANZ, NAB, Westpac and Commonwealth Bank, according to analysis by financial comparison site Mozo.com.au.
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Online players usually offer lower fees and more competitive exchange rates but also faster turnaround times – from 1-2 days compared to up to five days for the banks. TorFX, World First and CurrencyFair were found to offer the best value across a range of international money transfer scenarios.
Frustratingly, Australia ranks among the most expensive G20 countries to send money from, with only Japan, South Africa charging more, according to data from the World Bank.
Australians pay an average 9.65 per cent on a $US200 transfer – higher than the global average of 7.45 per cent, the data shows.
The key to the best rates is to shop around, says Mozo Director Kirsty Lamont.
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From | To | Amount transferred | Provider and timing | Amount received | Difference |
AUD | USD | AUD 10,000 | TorFX, 1-2 days World First, 1-2 days | USD 7,492 | USD 367 (AUD 488) |
CurrencyFair, 1-2 days | USD 7,486 | ||||
Big 4 average, up to 5 days | USD 7,125 | ||||
AUD | GBP | AUD 10,000 | TorFX, 1-2 days World First, 1-2 days | GBP 5,836 | GBP 304 (AUD 519) |
CurrencyFair, 1-2 days | GBP 5832 | ||||
Big 4 average, up to 5 days | GBP 5,532 | ||||
AUD | EUR | AUD 10,000 | TorFX, 1-2 days World First, 1-2 days | EUR 6,851 | EUR 359 (AUD 522) |
CurrencyFair, 1-2 days | EUR 6844 | ||||
Big 4 average, up to 5 days | EUR 6,492 | ||||
From | To | Amount received | Provider and timing | Cost | Saving |
AUD | USD | USD 10,000 | TorFX, 1-2 days World First, 1-2 days | AUD 13,348 | AUD 680 |
CurrencyFair, 1-2 days | AUD 13,357 | ||||
Big 4 average, up to 5 days | AUD 14,028 | ||||
AUD | GBP | GBP 10,000 | TorFX, 1-2 days World First, 1-2 days | AUD 17,135 | AUD 925 |
CurrencyFair, 1-2 days | AUD 17,145 | ||||
Big 4 average, up to 5 days | AUD 18,060 | ||||
AUD | EUR | EUR 10,000 | TorFX, 1-2 days World First, 1-2 days | AUD 14,596 | AUD 798 |
CurrencyFair, 1-2 days | AUD 14,609 | ||||
Big 4 average, up to 5 days |
“For people sending large amounts overseas or making regular transfers, shopping around can make a big difference as the best online money transfer providers offer lower fees and better exchange rates than the big banks.
“What’s more, providers like TorFX, World First and CurrencyFair can turn around transfers in one to two days compared with up to five days for the big banks.”
Check out Mozo’s International Money Transfer tool at https://mozo.com.au/ international-money-transfer.
Also, get current rates at Yahoo Currency Convertor.