British Expat Forum

I'm heading out to NZ in November; we don't have a lot of money saved up (the emigration process ate a lot more of it than I had anticipated, even with doing my research!), and have nothing tied up in property.

I'm going to get an NZ bank account lined up, but wondered what the best way of transferring money would be?

I'm likely to be able to transfer out just under £5,000 in the near future, and then with final wages, flat deposit etc coming back in when we leave, about £3,000 after we have gone.

For this low amounts of money, I know that I can't get a person on the other end of a computer to sit and watch the exchange rates till they are as good as they can be (preliminary investigations all say that they would want to transfer a min of £10,000 in a lump sum)

But is money transfer the best way to go? Or, with the transfer fees, bank charges et al, would it be better just to take it out as cash (and hope we don't get mugged!)

Has anyone else had experience of transferring small amounts of money?

Cheers in advance
Jo

Hi Jo

This is a good question and is a specific service offered by people we've been having behind-the-scenes discussions with, prior to setting up this new board.

I'm sure you'll get an answer soon. 8)

Kay

Hi Toonster

New Zealand hey – very jealous. A friend of mine who recently married a Kiwi has just sent me some pictures of his house / new life on the South Island and I’m green with envy to say the least. Not long before you’re big move - you must be excited.

With regards international money transfers.

Don’t worry you’re not alone in wondering what the options are. For most people, it’s the first time they will have to have made a bank to bank transfer overseas and so they naturally immediately think of their bank.

However they are a number of alternatives you should consider. Just remember to shop around and compare the rates / charges offered by your bank with those of a currency specialist or online money transfer company.

First things first. When moving money internationally, the costs fall into two simple categories: fees and the exchange rate. When comparing one provider with another, it’s crucial to check both.
• Fees. The obvious charge. A multitude of fees, charges or commission can apply, both for the sender and the recipient. Many providers levy lots of small charges to disguise exactly how much it costs.
• Exchange rates. The hidden charge. Many companies claim to be ‘commission free’ then load the exchange rate so you get less buck for your pound. Worse still, it’s often teeth-pullingly difficult to get hold of the exact rate and compare it, as some providers simply don’t provide the data.

Don't panic though! The minefield of complications actually boils down to a very simple question…

“How many NZ Dollars will I get for my Pounds, after all charges?”

For amounts under £5,000 traditionally I would have said use your bank or an online international money transfer specialist like Western Union or Paypal, as currency brokers only gave good rates on larger amounts. However a number of brokers including HiFX and Caxton FX now offer online money transfers for amounts under £5,000 at great rates so it’s worth checking them out too.

One of the best sources of independent information on this is a website called Moneysavingexpert.com. It’s run by a guy called Martin Lewis who no doubt you’ll have seen on TV answering peoples personal finance questions. On his website he examines the whole foreign exchange market and tells what you should be aware of and who the main players are regardless of the amount you're sending.

Just remember that this was written prior to a number of the brokers launching their online services!

Hopefully this is useful and please don't hesitate to let me know if you have any further questions.

Good luck with the Big Move!

Best Regards

Mark Bodega
Director - HiFX

Oooh - thanks - some more names for me to investigate

You are right that it is really difficult to get the answer to that very simple question - people just don't want to give you that information!

I hadn't thought of checking out MSE - I'll take a look...

It is *amazing* how impossible it is to get an answer to what appears to be a very simple question!

The Hifx website doesn't have an email address to ask, so I can't even enquire (I *hate* using the phone, particularly as most places will only work during business hours, and I can't take/make personal calls at work), the xe.com email came back with a whole load of sales spiel that boiled down to "It depends", even when I tied it right down to "How much would I get, at today's exchange rate, for £4,600 as a one off transfer?" (all of the other sites that I looked at had such bad rates that I didn't get any further with checking - I was losing $200 just on the rate, which for such a small transfer is a lot of money!)

Hi Toonster,

Click HERE. It will take you straight to their contact page, email address near the top of the page.

Hope that helps

Thanks! Serves me right for going straight to the Foreign Transfer section of the website

Hi Toonster

You're right it can be very frustrating if you want to get a rate. Traditionally currency specialists like HiFX have not been able to give good rates for amounts of below £5,000 as we have not offered online services and the rates shown on the websites are interbank rates - i.e indicative.

A few currency providers however now provide an online service which in some cases offer better exchange rates as their overheads are lower. Companies include Western Union, Paypal and of course HiFX! All enable you to purely undertake the transaction online so no calling in which I know you hate!.

Our new online bank to bank service for example, enables you to register and then go on to make a transfer without having to call us. The exchnage rates shown are live (updated every 6 seconds) and are INCLUSIVE of bank charges etc.

When comparing rates rates check that the other providers rates are inclusive of charges. Some add them on at the last minute and it can change the cost quite significantly. Currently you can transfer up to £10,000 online, get better exchange rates online and all the feedback we've had from clients has been really positive.

For more information visit our website which tells you about the new online service.

Let me know if you need anything else.

Best Regards

Mark