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The best ways to send money abroad: a quick guide

Need to send money to family or friends overseas? Have funds in foreign accounts you need to access in your new home? Sending money abroad may be cheaper and faster than you might think.

The best ways to send money abroad: a quick guide
Photo: TransferWise

As more people live their lives across borders, the need to send money abroad is greater than ever. There are plenty of reasons expats need to send money overseas, and the number of available options is on the rise as well.

Whether you’re an expat juggling funds across banks in multiple countries, or a small-business owner who needs to pay invoices to an overseas supplier, there are plenty of options for moving money abroad safely and efficiently. And many are cheaper and more-user friendly than an old-fashioned bank transfer.

Below are a few options to consider when you need to make your next international money transfer.

Xoom

Xoom is a PayPal company that allows users to transfer money abroad, reload mobile phone credit balances, and pay bills with an easy-to-use app or online interface. Xoom currently provides service in 53 countries, with manageable fees ($4.99 for using a bank account). The maximum transfer amount is $2,999. And as you can guess by its name, Xoom is fast – delivering funds quickly regardless of which option you choose.

TransferWise

TransferWise is a user-friendly peer-to-peer service that lets users transfer money abroad in 38 different currencies spanning 55 countries. Fees are minimal and always upfront, with transfers under €400 costing only €2 (larger transfers cost just 0.5 percent of the total amount transferred). TransferWise also features the true exchange rate as well as fast delivery times. The app and web interface are also well-designed and easy to use, with a handy comparison tool.

Currencies Direct

This online service is good option for anyone looking to transfer more than £100. Currencies Direct offers international money transfers in 39 currencies and doesn’t charge any fees, and there is no upper limit on how much you can transfer. Exchange rates vary with the size of the transfer – the more you transfer, the better the rate. The website is also translated into 9 languages.

CurrencyFair

Founded in 2010, CurrencyFair is a peer-to-peer currency exchange that allows you to bypass banks altogether. Besides the basic €3 transfer fee, users pay an additional fee (0.38 percent on average) based on the amount exchanged and how easily they match with another user. The service is currently available for 20 currencies.

OFX

OFX (formerly known as UKForex) allows users to make international transfers in 155 currencies. There are no fees, although there is a minimum transfer of £100. Users can make transfers online or over the phone, and with offices across the world, OFX offers 24-hour customer support. Setting up recurring transfers is a snap, and OFX also offers different hedging tools to minimize risk.

This article was produced by The Local and sponsored by TransferWise

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The best banks for non-EU citizens living in France

Many foreigners in France - particularly pensioners - need to keep a bank account in their home country, but not all banks will offer accounts to people living abroad.

The best banks for non-EU citizens living in France

Most people who move to France get a French bank account – but many also maintain accounts with banks in their home countries to receive income in the form of pensions, property rentals, salary, or to hold savings and pay bills.

This is particularly key for pensioners, as some pension providers will not pay into a bank account in another country, but others just prefer the convenience of having a bank account and debit card to use on visits home in order to avoid extra transaction fees.

Banks within the EU benefit from ‘passporting’ arrangements that allow them to operate throughout the Bloc, but for those outside the EU it’s a little more complicated.

Here are the options.

International accounts

Many banks offer ‘international accounts’ aimed at those who have moved to other countries.

The major drawback is the cost; many accounts have a minimum deposit level or stipulate a minimum annual income, so they may not be suitable for pensioners, people on a low income, or those who just want to use their account for a few basic functions while keeping most of their income/assets in their French account.

Most expat/international accounts also charge a monthly fee and some charge transfer fees on top of that. 

They’re really aimed at ‘high net worth’ customers (ie rich) so they’re often not suitable for people who have lower means or have retired to France.

Internet banks 

The last few years has seen a proliferation of new internet banks, which offer online-only services and operate across Europe.

The advantage of these is that you can sign up with a French address and then carry out transactions in another country.

Many people use internet bank accounts – Wise (formerly the money-transfer service Transferwise, now set up as a bank), Revolut or Starling are notable examples – when they first move to France before they set up French accounts.

The disadvantage for some people is their lack of a physical presence so in case of a question or a problem contact can only be made by phone or – more usually – via email or chatbot. Many internet banks also do not issue cheque books or accept queues, which can be a problem for some customers.

Customers can set up accounts in different currencies and depending on the bank and its licencing you may also be account to get an account number and IBAN for your home country as well as a European IBAN.

READ ALSO The best UK banks for Brits in France

It means you can use the account for business back home, but also transfer money quickly and easily to/from France. It might give a better deal on exchange rates than receiving a pension in one currency and then spending in euros in France.

There’s a tendency to assume that internet-only banks are less secure, which isn’t necessarily the case, but if there are problems it can be harder to get redress. Make sure the bank you are using has a banking licence in your home country and France for peace of mind.

French banks

Most people living in France already have a French account for daily life, but can you use this for all your financial affairs?

It depends on your situation. Pension providers may only pay into a home account, while if you still have financial liabilities in another country, such as a mortgage, you may need to keep an account in that country. 

Keeping a home address

Many non-EU residents in France get around the problem by using a ‘care of’ address back home in order to retain their bank account – usually either the address of a property that they own or the home of a relative.

Whether this is allowed is a bit of a grey area. Opening a new account may be difficult, but existing accounts may be kept open. Some banks – especially British ones – seem to be keen on checking whether their customers are permanent residents while others don’t seem to care as much.

Basically you can’t lie to your bank if they ask you outright where your full-time residence or tax residence is, but not all banks ask this. 

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