The overseas money transfer rip-off big banks don’t want you to know about
Article by Roisin Kelly-Goldsmith
Australians who use big four banks to transfer money overseas are being charged hundreds more than online providers offering the same services, research by Mozo has revealed.
“Our review is great news for people sending money overseas who are sick of paying banks higher fees for the privilege of lacklustre exchange rates,” said Mozo Director Kirsty Lamont.
The financial comparison site found that online providers are generally 5.2% cheaper than the big four banks when it comes to sending money abroad.
While the World Bank counts Australia as being one of the most expensive developed countries for money transfer services, Mozo found that Aussies can get $500 more out of a $10,000 transfer with an online provider.
“Many Aussies with family, assets or business interests overseas need to send money overseas,” Lamont said.
“But they may not realise there are now a number of specialist money transfer providers offering much more competitive exchange rates and lower fees than the big banks.”
Out of the money transfer scenarios reviewed, Mozo found TorFX, WorldFirst and CurrencyFair as the most competitive online providers.
Tips for transferring money abroad:
- Check the exchange rates between providers, as even a fraction can make a big difference with a large money transfer.
- Don’t just look at the exchange rates. To get the best deal, factor in the fees and charges when comparing online transfer services too.
- Think of the time. If you’re in a hurry some online providers can transfer funds in a matter of hours for an extra fee.
- Consider the minimum and maximum amount you can transfer, as the lowest exchange rate could have a high minimum.
Are you looking for a place to weigh up your international money transfer options? The Mozo IMT hub compares no less than 15 providers in an easy to read format.