How to transfer money abroad
Transferring money into different accounts when working and travelling all over the world can be a daunting task.
Whether you need to send money home to pay for a bill or transfer savings to your current account abroad, it can be a timely and costly process.
Lucky for us backpackers there is now a cheap and easy way to do this.
You may have heard about TransferWise from a fellow backpacker on your travels or you may have briefly looked into it yourself.
When transferring money abroad, you would typically use your bank. The term ‘No Commission’ is always thrown around to incentivise you to use them. However, with this there may be a set fee as well as a lower exchange rate set by the bank.
Transferring £1000 could cost you from £15 – £50 depending on rates and bank charges.
TransferWise uses a peer-to-peer platform that matches your payment at the mid-market rate with one or several other people who are making an opposite exchange. It’s harnessing the power of the community to give users a better service.
The system is based on free or extremely low-cost local bank account transfers. Money never crosses borders so they can cut out extortionate bank charges.