International money transfers (2026 Update)

Jul 22, 2004 Last reply: 4 weeks ago 8 Replies
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Hi All,



I'm trying to find the cheapest and easiest way of transferring money=20 abroad (to Norway in my case).



At the moment I do this via a SWIFT payment. I notice that banks charge=20 slightly different amounts to make this payment. Also, they have different= =20 rules with regards to how you request the payment. None of the banks I=20 have looked at have an automated system for making a regular payment=20 abroad (like a monthly standing order) and several banks (HSBC, Barclays=20 and Nationwide for example) actually require you to drop into a branch and= =20 fill out a form to make the payment. They won't let you do it via their=20 internet or telephone banking.



The bank I currently use is the Co-operative bank. They allow you to make= =20 a SWIFT payment via Telephone banking, however as foreign words and names= =20 are involved it always takes some time to go through all the details and=20 double check them with the operator. I have recently discovered that they= =20 (the co-op) also allow transfers requested by fax if sent directly to the= =20 the Bank's foreign department. These faxes must be signed and the bank=20 will typically call you to confirm you requested the transfer. However (if= =20 I understood correctly) if you regularly make the same payment to the same= =20 person/organisation they do not do this extra phone check. You also=20 receive a confirmation of payment letter two days latter to minimise the=20 chance of fraud. This is by far the most convenient method I have come=20 across. Even with the phone call to confirm it is fairly easy to automate= =20 the process from my end since I can just setup a standard fax and only=20 need to change the date each time.



The Co-op charge 2.5% to make a SWIFT payment with a minimum charge of =A31=



3=20 and a maximum charge of =A330. I always get charged the minimum charge of= =20 =A313 since I make a payment of less than =A3520. Barclays apparently charg= e=20 =A310 for anything up to a payment worth =A33000. This is less than I trans= fer=20 and hence would save me three quid a time but the inconvenience of having= =20 to go into a branch and fill in a form each time puts me off. My lunch=20 break is worth more than $3! ;-) Nationwide charge =A320 no matter what the= =20 amount transfered and require a bank trip as do HSBC (or so I am told. I=20 haven't had a chance to confirm that with someone from the bank.) so these= =20 options work out even less well for me.

Does anyone know of a better option? I want the cheapest costs possible=20 but not at the expense of convenience. I don't really want to have to go=20 into the bank so internet, fax or phone are preferable (in that order).=20 Unless of course if the cost is free. My lunch break isn't worth =A313! ;-)



I do regularly travel to Norway so a final option would be to open a=20 Nationwide account and take the cash out of a cash machine in Norway to=20 pay in directly to a Norwegian bank account. The works as Nationwide do=20 not charge for taking out money whilst abroad. However, this is the least= =20 convenient option.



What are people's thoughts? Is there a better solution?


You shouldn't really need to fill in forms. It should always be possible to instruct your bank by letter sent through the post. This may seem a trifle old fashioned, but it's better than fax because they have your original signature, and not some fuzzy digital image of it. It will probably do away with the need for them to phone you for confirmation.

Even if forms are unavoidable, visiting the branch in person should not be. You could ask your bank to provide you with a supply of blank forms in advance, and then fill them in at leisure and then s-mail them.

As for saving on fees, consider making bigger and fewer payments, such as every two or three months instead of monthly.

HSBC's Offshore Banking Centre in Jersey will allow you to initiate international transfers via their internet banking service if you have an account there. You can also set up recurring transfers to make regular payments to the same overseas account. It seems that transfers go out almost instantaneously. Transfers I make to another account I hold locally with HSBC in the Philippines usually arrive within a couple of hours of my requesting them.

Chris

Hmm ... very interesting.

What is involved in setting up an account? (Any costs in creating/maintaining the account? How do I go about opening such an account? Do you know what the requirements are?)

Also, do you have any information on the charges involved (the cost to make each transfer)?

I have found the website

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Unless you know this information offhand I'll look it up myself. Thanks for the tip! ;-)

I've had my account for around 15 years, now, so its was opened when the rules were less strict than they are now. There's an online application form on their web site which you can print off. They also need copies of the normal identification and proof of residence documents.

There is no charge for either opening or maintaining the account.

See

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for more information.

If done on the internet, transfers to other HSBC branches in the UK are free. To other HSBC Group banks overseas transfers costs £10, and £20 to other banks overseas.

Chris

Yes, but I think that's only for the initial opening, after which you can withdraw it. I certainly don't keep anything like that amount in the account normally.

The account has a UK sorting code, so you can deposit cash and cheques into the account at any UK HSBC branch. You can also do UK standing orders and direct debits, and you get a Switch card, so its really no different functionally from a UK mainland account.

Perhaps they could club together. A whole bunch of people needing to make payments at the same time to the same country would not *each* need to make a transfer, but could get just *one* of them to do so. That way, the £13 could be shared between them. That person could then remit the funds to their respective payees from his own account in the country in question, using "normal" (and presumably free) methods.

The mind boggles. If they're non-customers who turn up with a pile of cash, I could understand it, but not if they're account holders of the remitting bank.

I currently use HSBC for my business (but not for much longer!) and would advise not to use them. Their local branch attitude to foreign currencies and overseas payments is pathetic. The require you to fill in their swift forms, which they stamp at the bank before giving them to you. They are only valid for two months, but they won't give them unstamped. This means you are always having to go back for more. They don't have a clue about Euros in my branch, and even told me to go to my own branch when I tried to collect euro notes. They were surprised when I told them it was my branch!

John

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