How specialist money transfer services can save you money this Christmas
Save up to $69.70 in exchange rates and transfer fees for every $1,000 sent overseas by comparing your options.
New research conducted by finder.com.au suggests comparing your options is now more important than ever before. When sending money overseas, specialist international money transfer services are now offering better exchange rates and lower fees than the big four banks and consumers are encouraged to find a better deal by considering the smaller players in the market.
finder.com.au has seen a 615% increase in the number of Aussies searching for better deals (when sending money overseas), compared to 2014. This may come as no surprise with the Christmas period fast approaching and 28% of people living in Australia born overseas alongside the 60% of Australia's population growth within the last year from overseas migration sending money back to their loved ones living in other countries.
Bessie Hassan, consumer advocate at finder.com.au, also attributes the sharp increase to Aussies transferring their money before the Aussie dollar falls even further. A survey completed by 29 experts earlier this year forecasted the Australian dollar to hit 71 US cents by the end of 2015 – and 67 US cents this cycle. Many Aussies could be wanting to send money overseas sooner rather than later to avoid lowering the amount being received overseas.
International businesses and online traders can also take advantage of the Australian Dollar by using specialist business transfers when repatriating funds, with services only charging 2.5% in fees, compared to Amazon that charges 4.8%.
How you can save this Christmas
A finder.com.au analysis has found that Australians could save on average $63 when transferring $1,000 overseas by comparing their options.
The table below shows how much you could save when sending USD from one of Australia's big four banks, compared to an international money transfer service.
|Rates correct up to 10 Dec 2015||Bank (In branch)||International Money Transfer Service|
|Exchange rate||0.6899 USD for every 1 AUD||0.7296 for every 1 AUD|
|Gross amount||689.9||729.6 (inclusive of fee)|
|Transfer time||2-5 business days||1-4 business days|
|Transfer options||Online, in branch||Online|
|Amount received for $1,000 (in USD)||659.9||USD 729.6|
As this example shows, using a specialist service to send money overseas can save you $69.70.
In the last 5 years finder.com.au has seen an explosion in the number of specialist international money transfer services competing in the industry. This is great news for consumers as they are able to take advantage of better exchange rates and lower fees. In addition, accessibility has improved as there is now a wider range of pick-up locations globally including: branch pick-up, bank deposit or delivery. It has now made the experience easier and more satisfying for all parties involved.
Some consumers may assume that international money transfers can only be done through their everyday banking, which is not the case. Comparing your bank option with specialist money transfer services could save you money.
Australia sent about USD$7 billion (approximately AU $9.7 billion) to other countries in 2014, placing us 12th in the world. The top three countries are listed below:
- United States
- Saudi Arabia
- Russian Federation