Author, Andrew Gibson
Last Updated on August 11th, 2024
When deciding to transfer money overseas, an important factor is the overall cost and how much value for your money you can get.
One question customers have is, ‘How can I send money internationally without transaction fees being added?’ This article provides all the necessary information and how to do just that.
No Transfer Fees with Key Currency
What are the costs involved when transferring money overseas?
There are two main costs usually associated with an international money transfer.
- Transfer Fees (can be avoided)
- Exchange rate charges (cannot be avoided)
They are standard across various services and providers of international money transfers for customers.
You won’t find consistent overall costs; Different providers will charge higher transfer fees and exchange rate margins than others. So, researching and comparing different offers is a big part of finding the best deal and value for your overseas money transfer.
Here’s how this article can help you.
There are three types of international money transfer services to send money overseas. You can use your bank, a currency broker (money transfer specialist), or an online money transfer app.
Depending on your reasons for transferring money internationally, each type of service may be better suited than the other, for example:
Moving a large amount overseas: Currency Broker.
A small, one-off money transfer: Your bank.
Small, regular transfers overseas (under £5,000): Online money transfer service.
But is there a way to transfer money overseas, using either of the 3, without additional transfer fees?
Let’s take a look!
Can I transfer money overseas with my bank without transfer fees?
High-street banks typically charge their customers the highest transfer fees and exchange rate margins for international money transfers. There is a way around this, but criteria are in place that customers have to meet to transfer money overseas without additional transfer fees with their bank.
Barclays
If you bank with Barclays, international money transfers outside of the European Union will result in additional transfer fees being applied or being charged to the amount you wish to send, meaning your recipient will end up with less.
For money transfers to Europe, there is an option that allows you to do so without any added-on transfer fees.
If you have a personal, premier, or wealth management account you won’t pay an additional fee when you send an international payment to Europe IF you use online banking or the app.
Regardless of your account, transferring by branch or phone will incur a £25 fee.
HSBC
The best way to avoid additional transfer fees when sending money abroad with HSBC is to apply for their Global Money Account.
By doing so, HSBC will not add any transfer fees for transferring money overseas.
However, avoiding their £5 international transfer fee is still possible if the Global Money Account isn’t for you.
The criterion here is that you have to be able to transfer money overseas to a recipient with another HSBC account, this applies anywhere in the world.
Money transfers in Euros to a country/recipient who resides in the European Economic Area will also result in no additional fees added.
The slight hitch is that it has to be a Euros transfer, any other currency and the £5 fee would be added.
Natwest
Natwest international payment fees are split into two categories:
- Digital Payments
- Manual Payments
For both types, international Euro transfers sent within the European Economic Area will lead to no additional fees added. However, the maximum you will be able to send is £20,000.
There is no way of getting around additional fees digitally or manually if you want to send money to other destinations outside of the EEA.
To send money internationally outside of the EEA with Natwest through their online banking or app, a £10 agent charge will be applied, where applicable.
To do the international money transfer over the phone, by visiting a branch or letter, you will see a 0.3% transfer fee, this will be a minimum of £23 or a maximum of £40.
A £10 agent charge will also be applied, where applicable.
Santander
It is a similar story if you bank with Santander.
Their international payments are split into three categories:
- Electronic Transfer (standard)
- Electronic Euro Transfer (non-urgent)
- Currency Draft
An electronic transfer (standard will be for customers who want to see their international money transfer done quickly anywhere in the world. Unfortunately, this will incur a £25 fee.
If your international money transfer isn’t as urgent as the above and is a Euro transfer, then the transfer can be done without an additional transfer fee placed by Santander.
However, with the UK no longer within the EEA, receiving banks can add on a charge from their side.
a £10 fee will be added to Currency Drafts regardless of the destination and the currency being transferred.
Lloyds
If you’re a Lloyds customer and need to send funds abroad, then you have the option of fee-free international money transfers… sort of.
Like HSBC, Lloyds offers customers an option of signing up for their International Moneymover Service.
It allows customers to transfer money internationally without adding a transfer fee by Lloyds.
The catch here is that there will be correspondent bank fees. Customers can either pay themselves on behalf of the recipient or split these fees with the recipient.
These charges vary depending on the destination:
- USA, Canada & Europe: £12
- Rest of the World: £10
If you do not choose to use or sign up for the International Moneymover Service above, a standard electronic international transfer with Lloyds, regardless of destination, will add a £25 transfer fee.
Transferring money overseas transfer fee-free with a Currency Broker
A currency broker or money transfer specialist is usually the most cost-effective option for those looking to send money internationally, especially large amounts.
There are many reasons for this:
- Most currency brokers will not impose transfer limits (send as much as you need in one go).
- Currency brokers can provide much more competitive exchange rates due to lower overheads.
- Person-to-person communication is available, which is vital for large transfers overseas.
- Significantly, some do not add transfer fees to the overall cost, customers will only be charged on the exchange rate margin.
The crucial part of finding a currency broker with competitive exchange rates and no added fees is the research and getting customer quotes directly from the provider.
Not all currency brokers will be transfer fee-free! So, the critical comparison here is finding the best rate for your transfer and pairing that with a provider who doesn’t add fees on top, to get the most value.
To find the best rate for your money transfer overseas, you will want to gather various customer rate quotes from different currency brokers.
‘Customer rate quote’ is key here – the rates you see on various providers’ websites are not actual rates but ‘interbank rates’.
This means further down the line, you will be quoted an entirely different exchange rate for your transfer than the one you saw online.
It can be quite a shock.
Customers must go through the quote process with a currency broker or phone them directly for their latest rates. Make sure not to accept what you see online as that rate will not be the one you end up with.
Many comparison websites showcase the ‘Top’ currency brokers for international money transfers.
You may have seen us, Key Currency, appear on them.
They are usually an excellent start to finding the various brokers available in one place to begin the quote comparison process.
Can you transfer money overseas with no fees using online money transfer services?
Online money transfer platforms are becoming increasingly popular in today’s digital era.
Their main goal is to allow customers to do international money transfers online, often without human interaction or contact.
This type is usually ideal for those looking to send smaller amounts to a friend or loved one abroad and to do so quickly.
But not great with more significant amounts; it can be hard to find support if things go wrong.
Online apps and services are a middle ground when transferring money overseas without a transaction fee.
Online money transfer services will offer exchange rates that are more competitive than a bank, similar to a currency broker, but they will still add on transfer fees; these are usually much less than banks in some cases.
To compare what you can expect when using one of these online services, we’ve highlighted two of the most used by customers.
Wise
Wise, of as formerly known, as Transferwise, is a common choice for those looking to transfer money internationally.
Depending on the currency you’re looking to send, Wise’s variable fee starts at 0.43%, this can go up with certain currencies and the type of transfer you want to use. These range from ‘fast transfer’ (higher fees added) to ‘low-cost transfer’ (lowest fees added).
Some popular currency pairs and the fees with Wise if you were looking to send £1000 using their ‘low-cost transfer’ method:
- GBP to Euro: £4.49
- GBP to US Dollar: £4.64
- GBP to Australian Dollar: £4.35
- GBP to Canadian Dollar: £5.02
- GBP to New Zealand Dollar £4.53
These fees will increase the higher the amount you’re looking to send.
For example, if you wanted to convert £5,000 into Euros and make that transfer, the additional fee would be £21.62.
Revolut
The fees in place when using Revolut are split into three areas, basically how the payment or transfer is done.
- International bank transfer
- Revolut account to Revolut account
- Payment by Card
Fees will also vary depending on the currency and amount you want to send.
As with most online services, no fees will be added if you transfer money abroad from one Revolut account to another, but with Revolut, the transfer has to be £1000 or under.
A £5000 international money transfer from a Revolut account to another will see fees of up to a minimum of £20 added, which will vary depending on the currency.
If the amount you want to send is £1000 or under, transfers such as GBP to Euro will see no fees added if you use an international bank transfer method.
If it is anything about £1000, then fees will be added if you use an international bank transfer as the method of payment. A £5000 to Euro transfer with Revolut will see an added fee of £40.
If you want to do a £1000 to Euro transfer with a direct debit or credit card, the additional fee will be £7.
When looking at other popular currency transfers such as US Dollar, Canadian Dollar & Australian Dollar from GBP, for £1000 or under, the fees were the same, at £1.50 added as a transfer fee.
Again, a higher amount transferred would see much more significant fees; for the same currencies listed above, a £ 5,000 transfer would add around £47.50 via transfer fees by Revolut.
Quick Summary
- The cost of transferring money overseas will always include the exchange rate margin, but some services do not add transfer fees on top of this.
- Certain banks won’t add transaction/transfer fees for European money transfers, but customers must meet the criteria they put in place.
- Currency brokers are the best option for transferring money overseas without adding a transaction/transfer fee to the overall cost, especially for large transfers.
- Online money transfer services, for small amounts, will beat banks on the exchange rate margin and transfer fees, but for anything higher than £1000, customers should expect higher fees added to the total cost.
Transfer money overseas with No Transfer Fees using Key Currency
We help thousands of customers with international money transfer requirements at Key Currency.
As an FCA-regulated and Authorised financial institution, customers know their money is safe. All of our customer transfers are done through segregated client-only accounts.
Don’t just take our word for it.
We have over 2,000 Trustpilot Reviews with an ‘Excellent’ rating.
Our team of expert traders is always available for people who need help sending money abroad and getting the best value for their money.
They’re just a call away; you can also see who you’ll speak to on our About Us page.
If you want to transfer money overseas without the extra transaction/transfer fees, get a quote with us today!
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