Transferring funds from £ UK to € Spain, best way to do it in most cost efficient way?

14
Found 11th Jan 2012
I need to transfer some dosh to a Spanish bank. It's the deposit to secure a holiday villa for this Summer. I am absolutely clueless as to how to transfer the funds. I understand that UK banks will fulfil the request but they charge fees and with the exchange rate factored in, it does cost a fair bit.

Amount to be trasferred: €690

Called Natwest just now but the dept. that deals with such queries had closed. Online thingie says it costs £10 extra (not too bad, I guess)

Barclays online FAQ's state £25fee per transaction?!

Does anybody have any helpful tips or suggestions otherwise? Am I looking at the correct web pages from which I derived the figures above?! Responses greatly appreciated
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Original Poster
Natwest £10 fee

Barclays £25

What's the reason for the massive price difference?! oO
that fee is for an international payment with barclays (worldwide) a sepa transfer occurs a £15 fee and send the money in euros and as such doesnt occur any charges at the other end (generally)

with a larger amount you can pre book an exchange rate but not for 690 euros

personally i use barclays because the payment i make to spain gets there on the third working day which i feel is a good service for the fee charged (i believe the guarantee is 4 working days to mainland europe)

would you just use whoever you bank with, we do it with barclays and it aint £25
Post office have an account (sorry, can't remember the details), have a look on their web site. I opened this account at no cost and transferred 300 euros at no cost to a camp site (bank details given by the camp site).
Paypal? Booking mine at the moment and owner accepts it.
I think given the fact that you are sending 690 euros then a £10 charge is not all that large in percentage terms and £10 is a pretty reasonable amount. It says its also next working day payment for that price too.

I sent around $1000 australian a few years ago to a friend for £10 and they give you the inter bank rates and not the tourist exchange rates so factor that into your pricing too.

At current rates sending at the inter bank rate (almost the same as the rates you see quoted in the financial press) would cost you about £572 + £10 charge making a total of £582. At the very best tourist rates it would cost you £580.50 and that does not take into account any aditional charges for sending the money or time spent getting the very best rate.

So in other words, go for the Natwest option and ignore the £10 charge as the spread almost wipes out any possible gains using other methods.
Original Poster
mario999

Paypal? Booking mine at the moment and owner accepts it.



tis a good suggestion paying with paypal- is it just a quick 'transfer' or is there a fee (% payable?) wanna work out how much it will cost me to send that way..

alansnowden

http://www.postoffice.co.uk/finance/making-payments/post-office-international-payments



ooh, interesting..very. seems really good although ill have to give em a ring tomorrow to ask how long the initial 'set up' of the account will take. seems like that it may be a week- 10 day process but may just open one for instant use in the future


mario999

Paypal? Booking mine at the moment and owner accepts it.



Paypal can be quite poor with their spread (the difference between the market rate and they rate of exchange they offer) so since it is quite a high amount I would do a quick calculation and divide the 690 by the exchange rate offered by paypal and compare that to a rate of 1.2064 (todays current rate) and see what the difference is when you take the fee into account.
Original Poster
InfiniteWisdom

I think given the fact that you are sending 690 euros then a £10 charge … I think given the fact that you are sending 690 euros then a £10 charge is not all that large in percentage terms and £10 is a pretty reasonable amount. It says its also next working day payment for that price too.I sent around $1000 australian a few years ago to a friend for £10 and they give you the inter bank rates and not the tourist exchange rates so factor that into your pricing too. At current rates sending at the inter bank rate (almost the same as the rates you see quoted in the financial press) would cost you about £572 + £10 charge making a total of £582. At the very best tourist rates it would cost you £580.50 and that does not take into account any aditional charges for sending the money or time spent getting the very best rate.So in other words, go for the Natwest option and ignore the £10 charge as the spread almost wipes out any possible gains using other methods.



true words of wisdom
thanks a bunch for clarifying..think i was 'overthinking' the whole thing a tad too much in a bid to minimise costs! maybe i'll do the Natwest transfer afterall..

i think ill have to go in branch for this as i neeed to pay the full amount and ensure no fees are deducted from my total amount at the other end. the villa rentals disclaimer said some jargon abt all fees are to be made payable by me
samwants2save

true words of wisdom thanks a bunch for clarifying..think i was … true words of wisdom thanks a bunch for clarifying..think i was 'overthinking' the whole thing a tad too much in a bid to minimise costs! maybe i'll do the Natwest transfer afterall.. i think ill have to go in branch for this as i neeed to pay the full amount and ensure no fees are deducted from my total amount at the other end. the villa rentals disclaimer said some jargon abt all fees are to be made payable by me



Just did a quick check on paypal and their rate is terrible @ 1.1643 when the best tourist rate is 1.189. I thought it would be bad but not that bad.

So its £582 with natwest including the £10 fee or £592.63 with paypal. I hate the way currency exchange is used by businesses to take advantage of unsuspecting people. Who would have thought paying a £10 fee to send a payment would have been £12.63 or almost 2.2% cheaper than using paypal with 'no fees'.
Original Poster
infinate:- thanks so so much for doing the sums i reaaaally appreciate it. learnt a lot abt paypal and the whole 'no fee' business too - and to think just a few moments ago i was thinking that paypal may well be the best (deffo easier) option. Gonna stick with Natwest methinks- just get it over and done with.

wish hukd would bring back 'rep'- you're deffo deserving of some for the help you've given me tonight. ta very muchly
samwants2save

infinate:- thanks so so much for doing the sums i reaaaally … infinate:- thanks so so much for doing the sums i reaaaally appreciate it. learnt a lot abt paypal and the whole 'no fee' business too - and to think just a few moments ago i was thinking that paypal may well be the best (deffo easier) option. Gonna stick with Natwest methinks- just get it over and done with. wish hukd would bring back 'rep'- you're deffo deserving of some for the help you've given me tonight. ta very muchly



No problem at all. I hate the way companies tend to obscure the facts and hide the true cost of things, expecially currency exchange. Just because its 0% comission or there are no fees does not mean its the best deal.

If you ever need to do a comparison then the Travel Money Maximiser on the Money Saving Expert website is very useful to find the best tourist rates available and most financial sites will give you a good indication of the actual rates that the banks would use.
alansnowden

http://www.postoffice.co.uk/finance/making-payments/post-office-international-payments



Just had to send Euro 2000 and someone mentioned HiFX.
Turns out the Post Office use HiFX to do the actual transfer.
I nearly didn't bother to check but using HiFX directly worked out £29 cheaper than using
the Post Office! In spite of the £9 charge per transaction that HiFX apply.
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