Many expats, in particular retirees, are receiving regular payments into their accounts when living abroad. Some may also be consistently transferring money out to maintain bills or help their children back home. No matter which description is more applicable to you, by following a few simple tips, you can save a substantial amount of money when transferring money overseas.
International transfers typically have two kinds of fees associated with them. One is the standard bank fee you will be charged for making the transfer. This can be a percentage of the amount or a fixed amount, depending on your bank. The second is the exchange rate fee that compensates for the foreign currency exchange. This amount is constantly changing, so know what the current rates are to ensure that you’re not getting taken advantage of by foreign exchange brokers.
Buy When It’s Hot
If you have plenty of time to prepare for international payments, then try to buy the local currency when it reaches the best rates possible, or have a broker do it for you. If you have a large nest egg or savings account, then this is an ideal strategy anytime, not just for overseas transfers.
To Bank or Not to Bank
If you’ve created a bank account abroad, then this is probably your normal go-to service to money transfers. However, there are other options such as a foreign currency brokers and organizations that will take the time to follow currency exchange markets for you to make sure that you are getting the best deal possible.
Get Fixed Contracts
If you know that you’ll have specific payments ahead of time, try to get a fixed currency rate on the payment to protect yourself from currency changes. In order to secure a fixed rate, many companies will request a 5-10% deposit.
Always be on the lookout for other agencies or banks that will offer you better rates and more specialized services. Typically, you’re not under contract with one organization or another when it comes to your money and foreign currency exchange, so don’t be afraid to take your money where you need to for the best rates possible. The market can fluctuate 2-4% in a single day and you deserve to have the best possible team tracking this for you.
Do What You Can
It’s understandable that dealing with currency exchange rates can be a hassle. When and if you find ways to save money regularly, take advantage of them. Especially for those living abroad, forex rates can dramatically change the way you transfer money and handle your finances.