Sending money abroad is one of those things that can be a nuisance when traveling. If, for example, you’re planning on doing a working holiday in Australia or New Zealand, transferring your hard earned dollars to your own currency can bring considerable costs. Luckily there are very cheap ways of getting your money safely in your own bank account at home without having to pay a high fee. We’ll give you tips on how to do an international money transfer the cheap way.
How to sending money abroad the cheap way
Regular banks charge high amounts for transferring money abroad, either sending or receiving. Unfortunately most banks are not very easy when it comes to sending money to other banks in other countries (I wonder why.. #sarcasm). For example, when you send an amount between €200 and €300 euros, the fee often can be as high as €25 which is a total waste! If you have to send money abroad to get going before finding a job, you’d pay double as you also would have to send your earned money back into your home bank account. Money down the drain if you ask me.
Anyone who, for whatever reason, wants to transfer money to a foreign account either because of immigration, travel/work or just wants to send their sister some pocket money for her birthday, these tips will help you save a bunch of money. Saving money = more time to travel.
Revolut: access your money with the Revolut debit card
Besides CurrencyFair and TransferWise, Revolut now also gives you the possibility to access your own money abroad. With Revolut you will get a debit card on which you can deposit money. Use the debit card on any ATM in one of the supported countries. There are no ATM fees up to €200/$200 per month. After that the rate is 2%, which is very reasonable. We have just ordered our Revolut card, so we haven’t actually used it yet, but it looks very promising. Besides being able to access your money from anywhere in the world, it’s also possible to get travel insurance with Revolut. The latest feature is transferring cryptocurrency.
How to transfer money overseas with Currencyfair
Soon after we arrived in Australia in October 2016, we paid a visit to the bank – Commonwealth in our case, to open a bank account. The whole process doesn’t take more than a few minutes. An account where we could deposit our hard-earned Australian dollars. At Commonwealth we were told that transferring euros to our new account would not be cheap. We knew we weren’t going to make money for at least a few weeks, but the rent and groceries had to be paid. So we had to put money on our Australian account. After doing some research we came across CurrencyFair, a service which we have used multiple times since.
What is CurrencyFair and how does it work?
With CurrencyFair you can send money abroad to a bank account for a fraction of the costs a ‘normal’ bank would charge. The process is pretty straightforward and simple:
- Go to ‘Send In’, located in the left sidebar
- Choose ‘Auto Transfer’ if you want CurrencyFair to automatically send the money through when in arrives in their account
- Enter the amount you want to send and choose the currencies you want to send in and exchange to
- Enter both bank accounts; the one you send from and receiving one
- Go to your bank account from which you want to send the money and send it to the CurrencyFair account mentioned on the confirmation screen
It usually doesn’t take more than three days for the money to arrive in your account (Based on transactions between Dutch and Australian accounts). On average CurrencyFair charges 0.4% exchange fee plus a €3 transfer fee
CurrencyFair has a really cool referral program in which you and your referrer get a €30 bonus when you transfer at least €2000
€30 free on your account after the first transfer
When you use this link to create an account with CurrencyFair you will get a €30 (or equivalent) bonus deposited on your CurrencyFair account after you complete your first transfer. So far we’ve earned around €500 just by referring people using our link. So, sign up and use your own link to invite friends to make some extra money!
Transferwise: another cheap way of sending money abroad
Another option to transfer money overseas the cheap way is via Transferwise. Transferwise works similar to CurrencyFair, however, Transferwise appears to have slightly lower fees than CurrencyFair. The Transferwise referral program isn’t as generous as the Currencyfair counterpart. This one only credits you a free transfer opposed to the €30 Currencyfair gives away. Transferwise was founded by the faces behind Skype and Paypal and is therefore not just a bank. With this link you’ll get your first transfer for free!
We used Transferwise to transfer money to Tigit Motorbikes in Hanoi, Vietnam when we bought our motorcycle. The money was transferred super fast and it cost us almost nothing.
The CurrencyFair link in this article is a refer-a-friend link. This means that not only you will receive €30 after your first transfer but also we. A win-win situation. You transfer money to your foreign account as cheaply as possible and you receive €30 free. Because we have pointed this out to you, we also receive €30 in our account. Thanks so much if you create your account via our link! Referral program conditions may be different than stated in this article as conditions may have changed over time.
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