Do you transfer money abroad? Read this and SAVE MONEY!
If you ever need to transfer money abroad, this is the best money saving advice you will ever be given! Banks have received so much criticism since the recent global recession. They may present the image of being your "friend" but they aren't. They try to milk every penny out of you that they can. In this article we discuss a cheaper alternative that bypasses bank fees when transferring money abroad: TransferWise.
Banks currently charge around £50 out of every £1000 you transfer to a foreign bank account. And have you ever checked the exchange rates they give you? They are very poor indeed. The banks may claim to offer “free money transfers” and “0% commission” so it appears that money is already flowing freely across borders. However, this is not the case. Two friends, saw through the bank's deception and worked out a simple away of avoiding bank charges.
The story of TransferWise
Two friends were each earning money in a currency needed by the other. One was living and working in London but was paid in euros. Whereas the other was paid in pounds and yet needed to make mortgage payments in euros. Frustrated with the amount of money they lost in bank fees, they devised a simple plan. Each month they would check that day’s mid-market rate and establish a fair exchange rate. The first transferred pounds into the others UK bank account, and then put the equivalent sum into his friend’s account in euros. As a result, they each had money in the currency they needed without spending a penny in bank fees.
It was such a simple solution and saved the two men a significant amount of money each month. It dawned on them that they couldn't be the only ones who could benefit from this arrangement. And they're not. To date over £1,000,000,000 has been transferred on TransferWise.com. TransferWise has really caught the attention of a public who are fed up with the greedy high street banks. The word of TransferWise will continue to spread - remember, you heard it here first - as UK Entrepreneur Richard Branson recently invested in the company which already has the founders of PayPal and Skype behind them.
TransferWise uses the real mid-market exchange rate and charges 0.5% in fees. That is ten times less than the 5% charged by banks! If you transfer large or regular amounts of money abroad: you could make considerable savings.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk