If you need to send money overseas from Australia - whether it be for personal reasons like sending money home to your family, or for business reasons like paying an overseas supplier, you shouldn't automatically assume that doing it through your regular bank - or any bank at all - is the smartest or cheapest way to go.
This could be a costly assumption - in terms of money and service. And here's why.
In comparison to other money transfer services, banks can be very expensive. They tend to charge high fees, as well as adding a high margin on to their exchange rates they offer for overseas money transfers. In the end, while it may be more convenient to use your regular bank for your overseas transfer, it will likely cost you more.
Let's have a look at some of the fees and exchange rates charged by the main Australian banks for their international money transfer services*:
As you can see, if you were to send $1,000+ AUD overseas, there is a difference of 4025 Indian Rupees between the bank with the best exchange rate and the bank with the worst. But, then you still need to take their fees into consideration.
Now if you were sending under $10,000, we’d recommend a specalised money transfer service, like MoneyGram, and here’s why….
Again, if you had $1,000+ AUD to send to India, you would get $50,081.60 INR for that exchange with MoneyGram, and that's 715 INR more than you get from the bank offering the best exchange rate (NAB), and a whopping 4,740.60 rupees more than the bank with the worst rate (CBA).
For an estimate on your fees when you send with MoneyGram please click here.
Or, if you were sending over $10,000 we’d recommend using GlobalSend and making the most of the competitive exchange rates and having a dedicated account manager to make the process that much easier.
The difference in exchange rate and fees is staggering.
With MoneyGram, the fee for a money transfer to India is only $18 (but this send fee changes depending on how much money you need to transfer and where you want to send it to), but when sending over $10,000 with GlobalSend there are no fees for transferring money overseas over the phone or online for any money transfer transaction.
When you're comparing the fees and exchange rates of money transfer providers, you should keep the following in mind:
Banks have lots of income streams - from every day accounts and credit cards, to home loans and insurance. International money transfers are not their priority, and in fact, many bankers just see them as extra work. As such, they don't tend to provide proper advice or guidance, or help you understand your options.
You're just presented with your rate, the fee and off you go.
They won't offer you a bespoke service, and if you need to send money overseas regularly, then this is exactly what you need. You need a service provider that can offer you tailored currency arrangements, forward contracts or personalised options. Not someone who just tells you how to do it and you have no options but to follow that.
GlobalSend offers you a team of currency exchange specialists whose only business is to send money overseas on behalf of their customers. You get a personal account manager, and a convenient, personalised service - 6 days a week, with extended hours available to you. It's the perfect money transfer option for those that have large sums of money to transfer for personal or business reasons.
And with MoneyGram, you have access to a worldwide money transfer service, specialising in everything to do with international transfers. They offer a fast, simple and secure way of sending your money to loved ones overseas.
These days you don't need to pay unnecessary or high fees for a service you can access elsewhere at a lower cost. As you can see, the fees charged by the banks for their money transfer services are exorbitant, and there are plenty of other options out there for you to choose from, with GlobalSend and MoneyGram being just two of them.
Both of these services are offered at all Travel Money Oz stores nationwide, so just chat to one of our FXperts instore, and they can guide you towards the best option for your money transfer needs. Just find your nearest store on our website and you're one step closer to saving money on your next overseas money transfer.
*International money transfer fees and exchange rates for HSBC, ANZ, NAB, Westpac, CBA, MoneyGram and GLobalSend are accurate as at 24 July 2017 and are subject to change daily. Bank fee Information is taken from https://mozo.com.au/international-money-transfer
**Fee of AUD3.50 applies to sends up to $100 for cash pick-up only. Subject to agent hours of operation, public holidays, local laws and regulations. In addition to the transfer fee, a currency exchange rate may also apply. MoneyGram also makes money from currency exchange. MoneyGram and the Globe are marks of MoneyGram. All other marks are the property of their respective owners. ©2017 MoneyGram.
^Rate accurate as of 25th July 2017. For up to date rates click here.
+$18 fee applies for sends of AUD1000 to India only. Transfer fees vary based on the service option and transfer amount. Prices are subject to change.
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