Offshore Banking Updated:
If you need to send payments abroad, be it for an overseas mortgage payment, tuition fees, property purchase or anything else, you want to make sure you're not spending over the odds. Choose the wrong international money transfer service at the wrong time and you could spend far more than you need to, but is it possible to save money when sending payments abroad, and if so, how?
One of the best things you can do is find the right international money transfer service to arrange things, and this really can make all the difference. Don't think that your bank will be the best choice – banks typically charge higher fees than specialist currency exchange services, so always do your research before you take the plunge.
Pay particular attention to things like the exchange rates and transfer fees, because some services will always charge more than others. Check out our currency exchange partner, HiFX, to see if they'll meet your needs.
Not only is it important to get the right service, but it's also vital to make the transfer at the right time. As luck would have it, now could be a great time to be sending money abroad, particularly if it's going to a bank account on the continent. The uncertainty surrounding the Greek debt crisis has seen sterling's value soar against the euro, so if you exchange currency now, you could get more bang for your buck!
Research suggests that the strength of the pound could even be encouraging more people to invest in property overseas. Figures from FXcompared.com show that 46% of UK-based property investors are keen to take advantage of the strong pound to buy property abroad, with currency and exchange rates being the main factor for 16% of respondents, while for 34%, it had some influence on the decision.
Indeed, a strong pound was the most-cited factor in driving purchases abroad for the past six months and is predicted to become an even more important driver of respondents' plans to buy overseas as the year progresses, with the report predicting that overseas money transfer is likely to pick up as a result.
If you do your research and keep your finger on the exchange rate pulse, it really could be possible to save money when sending payments abroad. Take advantage of any fluctuations in the euro and buy when the pound is performing strongly – depending on how much you're sending, you could easily be hundreds of pounds better off – and you could even plan ahead by securing a rate of exchange now for future use. So, if you're buying a property abroad or simply want to arrange a few regular payments, make sure to go about it the right way and see how much you could save.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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