Cheap funds transfer from UK wanted

(Shutterstock)
(Shutterstock)
Shutterstock [http://www.shutterstock.com]
A Fin24 user is looking for a cheap way to transfer his savings from the UK to SA. He writes:

What I need to know, and have not been able to resolve, is finding a cheap way to move money to SA from my UK bank account.

I love 18:1, but by the time I have done it and after bank charges and commissions, I may lose 5% or more of my £200 000.

Oanda used to be fantastic and gave keen rates, charging a flat fee. But they withdrew from transfers to SA.

I had a problem with FNB as the receiving bank when I used the usual banking system last time.

I was obliged to send all 100% of my money, so I got only the currency price that prevailed at the time.

I was unable to transfer a part then and a part later. It cost me a lot.

You might ask FNB if they still have that policy and mention the amount I am thinking of.

And if you can find another Oanda type money transfer model on the internet, I would be so happy.

Chantal Robertson, head of specialist sales at FNB Forex, responds.

With the rand being so weak at the moment, the exchange is definitely in favour of funds coming into South Africa.

From the pricing side a customer will receive a competitive exchange rate for the conversion of their funds.

On transactions of this size, the exchange rate will be negotiated and booked by the dealing desk.

They are very experienced and will ensure that the customer receives an appropriate rate for the transaction.

The charges on transactions vary by customer segment and product used.

For a wealth customer, the charges on inward swifts received in foreign currency are as follows:

Commission percentage             0.475%
Commission minimum                   R125
Commission maximum                  R660

This means a maximum charge of R660 on a foreign currency inward swift will apply.

For example, if the customer receives £200 000 at an exchange rate of R18.20 for example, the equivalent ZAR amount will be R3 640 000.

The commission maximum of R660 will apply in this case.

Craig MacFarlane of Bidvest responds:

You will need to find a bank which will give you an indication of the rate - which will obviously vary given the current rand weakness - but right now that is working in his favour.

Then the other big factor is what fees and commissions they will charge.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

ZAR/USD
17.00
(-0.09)
ZAR/GBP
21.24
(-0.12)
ZAR/EUR
19.14
(-0.13)
ZAR/AUD
11.81
(-0.13)
ZAR/JPY
0.16
(-0.20)
Gold
1774.74
(+0.03)
Silver
18.05
(+0.01)
Platinum
808.00
(+0.25)
Brent Crude
42.78
(-0.79)
Palladium
1914.01
(+0.62)
All Share
54521.90
(-0.17)
Top 40
50179.89
(-0.26)
Financial 15
10150.02
(-0.64)
Industrial 25
76554.73
(+0.52)
Resource 10
50138.02
(-1.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1592 votes
I am taking a hit, but should be able to recover in the next year
23% - 2084 votes
My finances have been devastated
35% - 3131 votes
It's still too early to know what the full effect will be
25% - 2257 votes
Vote