Technology that has developed in recent years has accelerated money transfers around the world and has almost zeroed costs.
Today, money sent by EFT in the United Kingdom does not take even a second to reach the recipient account.
But sending money abroad is still not that easy.
Transactions made through banks are both costly and take days to reach the recipient.
You even pay the fee and make the transfer, your money will be transferred to the other side, but the bank there can still get a commission from the recipient.
In order to avoid such a surprise, I am telling you how to transfer money abroad much cheaper than banks and even ‘free’.
Step 1: Sign up for TransferWise
You can register for free on the TransferWise website.
All you need is an email address. If you wish, you can become a member with a single click with a Google or Facebook account.
Step 2: Currency to send
Type how much money to send and in what currency.
Step 3: Recipient’s bank account information
You can send money to yourself, to someone else, to a company or association. An IBAN number is enough for this.
Step 4: Confirm your payment
After entering the IBAN number, review and confirm your payment.
You can see all the details of how much you send, how much the recipient will receive and in how many hours the money will arrive. You can also write a reference for the recipient.
Step 5: Make your payment
Choose how to pay 500 EUR to reach the recipient at TRY 3,103.86.
The fastest method is to send money by your bank or credit card. Another option is to make a bank transfer to TransferWise’s bank account (or local partner’s account in your country.)
So you’re sending money to TransferWise’s account as 500 Euros, they send TRY 3,103.86 to the receipt’s account.
In some countries, debit or credit cards are not used when sending money abroad, so there is only a bank transfer method.
If you want to send over £1000, you may need to verify your identity.
Opening ‘multi-currency account’ and receiving payments from abroad
You can use TransferWise not only to send money, but also as a multi-currency bank account.
If you verify your identity, you can open a foreign currency account in more than 40 currencies and convert between currencies at any time.
With a multi-currency account (Borderless), you can receive direct payments to your accounts in British Pounds, US Dollars, Euros, Australian Dollars and New Zealand Dollars.
TransferWise provides you with a unique account number in these currencies.
For example, you live in Morocco and you did a job for a company in Italy, it will pay you. They can send you Euro IBAN that TransferWise provides you for free.
TransferWise Debit Card
TransferWise sends a Debit MasterCard for free to its customers.
With this card, you can spend money in any country you wish, no matter the currency in your account.
In other words, you can use your card in Argentina, even if you have Turkish Lira in your account. It makes automatic conversion between currencies over the real exchange rate.
But Turkey is not among the countries that TransferWise send a Debit MasterCard yet.
If you plan to go abroad after opening your TransferWise account (even for holiday purposes), you can send your debit card to your accommodation address and start using it.
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Italy, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovakia , Slovenia, Spain, Sweden, Netherlands, United Kingdom, United States, Switzerland.
You can use the comments section below for your questions.
TransferWise was founded in 2011 by two Estonian young men in London.
Today, it has 12 offices around the world with over 5 million customers, and around 5 billion GBP is transferred every month.
It transfers money 8 times cheaper than banks.
The reason why it is cheap is simple.
- TransferWise has an account in each country in local currency.
- If you send money from Germany to Turkey, you’re actually sending your money to Transferwise’s Euro accounts in Germany.
- Then, TransferWise office in Turkey send the money to the receipt’s account in local currency.
- So the money doesn’t really go abroad, so it’s fast and 8 times cheaper than bank transfers.
Its history of establishment as follow:
Taavet Hinrikus, who works in England, has a home loan payment in Estonia.
- Since he earns in Sterling, he has to convert his money to Euros every month and send it to Estonia.
- 5% of the money he sends each time was deducted by the bank.
- He makes a deal with a friend who earns Euros in Estonia and wants him to pay the loan.
- In return, he deposits GBP in the amount of the loan payment to his friend’s account in England.
- Then they institutionalize it and TransferWise comes along.
The best part of TransferWise that separates it from traditional money transfers is that all transactions are transparent.
So you can see how much money you will send, how much the recipient will receive, how much commission you will pay, when it will arrive.
It does not have costs such as membership fee, account management fee, annual subscription fee.
Are transactions safe on TransferWise?
All transactions are audited and backed up, so in case TransferWise goes bankrupt, your money up to £85,000 will not be affected and you will be fully refunded.
How cheap is it?
Let’s say you want to send money from Europe to Turkey. The Euro-Turkish Lira exchange rate is 6.21.
If you send 1,000 Euros in Turkey with TransferWise 6,159.29 Turkish Lira (TRY) will reach the recipient’s account.
If you send by Western Union, 6,156.40 TRY; 6,092.73 TRY with Rabobank, 6,052.11 TRY with UlsterBank, 5,989.68 TRY with ING, 5,812.56 TRY with BBVA…
How can you make a ‘free’ money transfer?
A TransferWise user can send you an invitation link for a free money transfer.
In this way, your first shipment of up to £ 500 is made free of charge.
After starting the sending process, the change in the exchange rate does not affect your transaction. The rate is fixed for you at least 24 hours.
If you complete your transaction within this period, the amount goes to the receipt’s account as mentioned beforehand.
Let’s say the rate has changed after the transaction starts and you did not like it, you can cancel your transaction without any interruption.