Article by Mozo
Whether you have just landed a job transfer, are off on a backpacking gap year adventure, packing up to study abroad or decided to emigrate to the far corners of the world, one thing you’ll want to do right is move your money across borders in the most cost effective way possible.
This guide will run you through some of the key aspects of international money transfers so that no matter what your own financial and travel situation is, you’ll be informed of your choices.
If you are moving overseas for less than 12 months and you plan on returning to Australia, it is important to make sure that you’ve got a range of money options and that those options mean that you won’t be paying a tonne in overseas fees.
If you are only temporarily moving overseas, for instance if you are backpacking or studying overseas, then it is likely that you’ll want to keep your bank accounts open in Australia so that you can keep the bulk of your money in AUD and exchange it into foreign currency at a time and in amounts suitable to you.
Best money options:
If you are planning on moving overseas for an extended period of time or permanently, then your overseas money needs are going to be different. You will still need cash or access to money when you first land, so having a credit card and debit card is an essential. When it comes to moving the bulk of your cash assets, ensure you are across the various international money transfer product options so that you get the best exchange rate for your needs.
Here’s a look at some the different product options available through international money transfer providers:
|Spot rate contract||The current price (or spot rate) which the currency is trading at that time. |
This is the most common service offered by IMT providers and banks.
|Small to medium size transfers or one off large payments. |
You choose the date and amount of the transfer based on the exchange rate at the time.
|This is where you fix an exchange rate that will apply to a transfer in the future.|
Used to help protect against possible currency fluctuations.
Allows you to specify a rate at which you will want funds to be transferred at.
|Large payments, such as purchasing property where you need to have a fixed amount transferred on a set date. |
Non specific payments. Allows you to transfer money across when exchange rates are in your favour.
You don't have to keep track of rates, your provider monitors and will transfer money on your behalf when the currency hits your desired exchange rate.
Regardless of how much money or how often you will need to transfer money, you will need to have an account set up with an international money transfer provider. This can be done easily online and requires identity verification so it is important that you do this well ahead of the actual day that you want to transfer funds.
Once you’ve got an account set up, transferring your funds can be done easily via the online platform. If you’re transferring a large amount (over $10,000) or want services you might need to speak with one of the traders to organise the transfer.
You will need to ensure that you have a bank account set up in your new place of residence so that the funds can be successfully transferred to this account if you are transferring money for personal reasons. If you are making a direct payment to a business or other person here’s what you’ll generally need to include: