Moving back to Australia or another motherland soon? Need to transfer some Great British Pounds back if you have any left after the best time of your life in Neverland, aka London? I’ve been using TransferWise since 2016 because let’s face it, none of us want to hand over any more money to the banks than we already have to. Some of you will already know about TransferWise or other companies that offer a similar service, but after hearing a fellow Aussie today tell me that she visited the bank to transfer a decent chunk of money back to Australia in preparation for her return, I wanted to make sure you all knew about TransferWise to transfer money back home and save.
How do I know what I’m talking about? Well every six months or so when my Australian bank account is out of cash and I need to pay for something in Australian dollars from my Australian bank account, I make a transfer using TransferWise. A recent example is having to pay around $900 AUD in maintenance costs for my rental property in Australia and not having enough cash in the bank to cover it. I logged into TransferWise to make the transfer from my UK bank account and had the money show up in my Australian bank account the following day.
To give you an idea of the fees charged by TransferWise and the savings in comparison to using banks, I’ve copied the details from my TransferWise account of the four transfers I made from my UK bank account to my Australian bank account since 2016:
- £1000 GBP transferred on 16 October 2017 for an exchange rate of 1.68663 and a TransferWise fee of £6.95 gave me $1674.91 AUD in my Australian bank account, a saving of £39.13 compared to banks
- £1000 GBP transferred on 7 May 2017 for an exchange rate of 1.75067 and a TransferWise fee of £6.95 gave me $1738.50 AUD in my Australian bank account, a saving of £39.13 compared to banks
- £1000 GBP transferred on 28 December 2016 for an exchange rate of 1.70525 and a TransferWise fee of £6.95 gave me $1693.39 AUD in my Australian bank account, a saving of £39.13 compared to banks
- £1000 GBP transferred on 31 May 2016 for an exchange rate of 2.03715 and a TransferWise fee of £3.48 gave me $2030.06 AUD in my Australian bank account, a saving of £42.60 compared to banks
If you read all that in detail you’ll see that I got a lot more Australian dollars for my GBP back in May 2016. It was the world before Brexit when everything in London seemed expensive because you’d double the prices of everything in your head to work out how many Australian dollars it was costing you. They say you stop doing this after living in London for a while but I never could. Oh how I wish it was still the same exchange rate! Instead you’ll see in my most recent transaction I got the least Australian dollars for my GBP. A whopping $355.15 less.
In my mind at least, this is even more of a reason to use alternative options like TransferWise instead of banks. To save money you’re already losing due to the unfavourable exchange rate. And, since I made my last transfer a mere 12 days ago, TransferWise has dropped their transfer fee. For example, if you were to transfer £1000 GBP today, the fee would only be £5.48 instead of £6.95.
And before you start thinking TransferWise must have an exchange rate in their favour, do the comparisons yourself. At 15:03 on 28 October 2017 I clicked ‘send money’ on the TransferWise website on my phone. For £1000 GBP it showed a guaranteed exchange rate of 1 GBP = 1.70933 AUD and on the XE Currency app in the same minute, the exchange was actually 1.7085 AUD. So in this particular minute you could actually get a better exchange rate using TransferWise than the ACTUAL exchange rate. I genuinely didn’t expect that when doing the screenshots for this article but there it is!
If you want to try it out, please use my TransferWise referral link https://transferwise.com/u/jodieb3 to get your first transfer free (up to £500). And if three people use the above referral link, I get £50! Which you will too if you recommend three others that convert to users. Just another benefit of using TransferWise.
Brought to you by an almost ex-expat, moving back to Australia next week!