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View Full Version : OT: Cheapest method of remitting funds overseas?



Billy T
07-05-2004, 10:54 AM
Hi Team

We are in the process of buying a professional musical instrument for our daughter and are buying direct from the UK manufacturer to save money.

The cost is around $6500 so small differences in exchange rates make quite a difference and we want to choose the most economical method of sending the funds.

As we understand it, using a credit card will tie us to the exchange rate at the time of billing, which may be more or less favourable than the rate on the day the charge is made against the card.

Aranging a remittance direct from our account to theirs may incur charges that we are unaware of as yet, and posting a cheque drawn in UK pounds will have charges attached as we have used this method for odd small purchases from the US where Visa was not an option.

Are there any banking experts on the forum, or anybody who spends larger amounts from time to time?

Cheers

Billy 8-{)

Murray P
07-05-2004, 11:08 AM
Will ask the financial controller (of this household) when she gets home from work, if it hasen't been answered by then. Part of her job entails foreign currency transactions.

Cheers Murray P

jockT
07-05-2004, 11:31 AM
If you have their account details a telegraphic transfer from your account will give you the current exchange rate. Don't know about others but Kiwibank charge $25.

Graham L
07-05-2004, 01:07 PM
There are experts in this subject, many of them domiciled in Nigeria. Copy the style of their letters (which I am sure you have recieved) , and you will be able to regard your $6500 as small change. :D

rugila
07-05-2004, 01:24 PM
Phone Thomas Cook or, better, Western Union (who have more outlets) and explain what you want. Both are in Telecom's White pages.

Generally that is the quickest, cheapest, and most clear as to costs way of doing international fund transfers.

Next best way is probably credit card.

Pacifier
07-05-2004, 01:35 PM
Don't use credit cards for large overseas purchases, the exchange rates are alot different to normal ones and both Visa and your bank will take a cut around 1% for most international transactions. Use International Money transfers, its fast and reasonably cheap, Most banks charge $25 for the payment. Try to get the company you are purchasing from to find out what charges their bank put on to receive the payment, make sure you add this amount to the payment otherwise you won't be paying what you think you are. I know NZ banks charge about $10 to receive a payment.

bonzo29
07-05-2004, 02:41 PM
Pacifier is correct
It's definitely more expensive using a credit card and you don't know the final cost until the transaction shows in your statement, the exchange rate risks are not worth it.

The banks, not much to choose between, them are the best all round

I use National because it's my bank

godfather
07-05-2004, 03:10 PM
Billy, just send me the cash, plus a business class return air ticket to the UK.

I will then pay the account in person in the UK. Being generous, I will transfer all Air Points accrued into your account on my return.

I will not charge any commission ....

Billy T
07-05-2004, 05:30 PM
And the winner is.............



Godfather, with an offer you can't refuse, not if you don't want to sleep with the fishes that is.:O

Seriously though, the International Money Transfer pans out best with a $25 fee, but no airpoints :(

Thanks guys, you saved me some time I didn't have to spare today, not if I was going to get WFTWE #101 finished that is. :D

Cheers

Billy 8-{)

tbacon_nz
07-05-2004, 05:43 PM
I'm not sure if it happens in both directions (I suspect it does), but you may find there are extra charges that are not immediately apparent. I sold something on eBay to a guy in UK, and despite me giving him the exact details required by BNZ for a funds transfer, the money actually came by a roundabout route involving several banks/building societies/whatever, and each one clipped the ticket in the way. The final cost of the transfer was some tens of dollars (I forget the exact amount) above what I was given to understand, on a NZ$200 transaction.

HTH

Robin S_
07-05-2004, 08:27 PM
I tried to reply earlier but although PF1 allowed me to read your post it wouldn't let me log on to reply to it.

My wife had a similar query to yours earlier this week and was told "on the side" by a bank officer (with a UK accent) that the cheapest way to do this sort of transaction is by sending a personal cheque. Such cheques sent from UK to NZ require a waiting period of 21 working days to be cleared so I would imagine that it might take a bit longer the other way round. As you might guess, this was not official bank policy. There is a transaction fee but I have no idea what it might be for a British bank. If you could find out the name of the firm's bank you could probably e-mail them and find out the charge. The exchange rate used would be the one applying the day the cheque was presented so you would have no control over that.

HTH

bonzo29
08-05-2004, 08:40 AM
I suggest you hold off purchasing sterling for a little while there's a blip at the moment because the UK has raised interest rates and this means the pound is v strong against the NZ dollar.

Whilst there's obviously no certainty my experience suggests it will ease back again or put another way the nz dollar will start to regain against the pound

Billy T
08-05-2004, 09:49 AM
Thanks Bonzo.

There is a 3-5 week waiting time from order until despatch to customise the instrument for NZ orchestral practises so I can defer remittance for a couple of weeks while I watch the exchange rates without compromising our order.

Cheers

Billy 8-{)
[pre][b]Nobody told me that giving two children recorder
lessons at primary school age would mean that
ten years later we would still be driving the same
old bombs but have the equivalent of two new cars
invested in several musical instruments, and have
contributed significantly to the retirement funds
of a succession of music teachers.:(
Worth every cent though.:)

tbacon_nz
08-05-2004, 11:48 AM
OK I'll ask the question that must be on everybodies lips but we are all too polite to ask - what is the instrument?

Graham L
08-05-2004, 01:43 PM
They must play the wrong music. With Gerard Hoffnung they could play the vacuum cleaner, or garden hose.

metla
08-05-2004, 01:45 PM
My guess is its a violin....

Billy T
08-05-2004, 02:19 PM
Nope, it's an oboe metla.:D

The other expenses were for a piano & various saxophones.

Like I said, plastic recorders were a bargain with a sting in the tail.

Cheers

Billy 8-{)