Find out how to save money on bank transfers worldwide
Posted on 26/03/2020 by Spaceships Crew
For years regular banks had a monopoly on international money transfers. Times are changing and new online systems are offering a fast and secure way to transfer money overseas without the hefty fees banks charge. A bank transfer can now be done easier, quicker and cheaper.
The world is getting smaller and smaller... We all travel to awesome places worldwide with ease, work from the other side of the world so money must flow just as easily to friends, family or companies overseas. Luckily high banking fees on international money transfers are a thing of the past. TransferWise is the solution you’ve been waiting for when wanting to transfer money from New Zealand to an overseas bank account or vice versa.
What is TransferWise?
A brilliant new service that makes bank transfers easier, faster and cheaper. How is that possible you might ask? Back in the day, your New Zealand bank would send the money to an overseas bank for processing and then it would have been transferred to the destination bank (arriving on the bank account of the person you’re sending the money to). These banks in between and the currency conversion difference meant that the receiver would get less money than you transferred (unless you selected that you would pay the high transfer costs). Anyway, someone in the process would have to pay these high fees.
TransferWise simply cuts out the middleman. When you transfer your New Zealand dollars to their NZ bank account, they don’t send the money overseas. Instead, they pay the receiver the correct amount from one of their overseas bank accounts. No bank transfer fees mean your international transfer is a lot cheaper. And on top of that, they do a fair currency transfer, giving you the real exchange rate instead of a made-up rate that most banks use.
That’s why TransferWise is up to 8 times cheaper than NZ banks when transferring money overseas.
Advantages of a TransferWise bank transfer
The brilliant people of TransferWise have created an easy to use online system that makes transferring money cheaper, easier and super safe. As soon as you start the transfer online or via the app they will keep you up to date of every step in the process.
It isn’t a black-box like your regular bank. You’ll exactly know when your money reaches the overseas bank account. And no surprises as they show beforehand how low the costs of the international bank transfer are.
|Transfer 100NZD via TransferWise||TransferWise exchange rate||TransferWise's low fee||Receiver gets||Arrives|
|To Europe (Euro)||0.534112||2.50 NZD||€ 52.08||within 2 days|
|To Australia (Australian Dollar)||0.985515||2.51 NZD||AU$ 96.08||next day|
|To the UK (British Pound)||0.490747||2.53 NZD||£ 47.83||next day|
|To the USA (US Dollar)||0.571500||3.44 NZD||US$ 55.18||within 3 days|
Another advantage of using TransferWise is that you can also get a bank account in New Zealand, Australia, the UK, Europe and the USA for free. It’s all part of their Borderless account, a free bank account plus debit card. That will really set you free from banking fees, especially when travelling overseas.
TransferWise bank transfer compared to NZ banks
Now compare what it will cost to transfer the same 100 New Zealand dollars to an overseas account. Just like the example above but now we’ll use a New Zealand bank. See how much more you will pay in fees and how unfavourable the exchange rate is.
|Transfer 100NZD via NZ bank||to Euro||to AUD||to GBP||to USD|
|* exchange rate||0.507600||0.939800||0.467400||0.544400|
|* fee||15.00 NZD||15.00 NZD||15.00 NZD||15.00 NZD|
|* exchange rate||0.523201||0.968215||0.482411||0.562427|
|* fee||15.00 NZD||15.00 NZD||15.00 NZD||15.00 NZD|
|* exchange rate||0.523000||0.961300||0.482700||0.561900|
|* fee||20.00 NZD||20.00 NZD||20.00 NZD||20.00 NZD|
Speed of a money transfer worldwide
How long does it take to transfer my money overseas via TransferWise? Is probably one of the questions on your mind. It all depends on the country you’re transferring the money to, but it can be as fast as within a day for some and within 2 days for others.
For example, when you transfer NZ Dollars to Euros via ASB Bank it can take up to 10 days, while on TransferWise it’s in the European bank account within 2 days. Big difference eh. Have a look at the table above,
Is it safe to use TransferWise?
TransferWise started in 2011 and has more than 7 million users worldwide. They are registered, regulated and/or supervised by official banking or corporate bodies worldwide. For example, in Australia, they’re regulated by the Australian Securities and Investments Commission (ASIC) and they are registered with the Financial Intelligence Unit (AUSTRAC) as a money remitter. In New Zealand, the Department of Internal Affairs (DIA) supervises the company and its system.
And with so many users worldwide, you know that this brilliant new way of transferring money is a great thing. Lots of Spaceships crew members and customers have been using TransferWise for a long time as well. We are an international bunch, a collection of travellers, and we are super happy with their international money transfer system and their Borderless Bank Account.
How can I do a cheaper money transfer via TransferWise?
Using TransferWise is super easy, often easier than using a New Zealand bank. Just follow the following steps:
- Create a free TransferWIse account
- Fill in how much you want to send to an overseas bank account
- Fill in the bank account details of the person overseas receiving the money
- Transfer the money to a local TransferWise New Zealand bank account (it’s free to make a bank transfer within NZ or use POLI or debit/credit card for a low fee transfer). The system will show you exactly how to get the money from your bank account to Transferwise in New Zealand.
- Sit back and relax. You’ll receive status updates until the money reaches its destination
Transferring money to an overseas bank account doesn’t get easier (and cheaper) than this!
Can I transfer money to New Zealand as well?
Yes of course. By using TransferWise to make an international bank transfer you can transfer money to almost any country worldwide. At the moment more than 50 countries and currencies are supported by TransferWise. And they keep adding new ones regularly.