UK Pension

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Jun 2nd 2023, 12:27 am

#16

dcw

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Joined: May 2023

Posts: 13

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Re: UK Pension Barclays closing account

Quote:

Originally Posted by Kiwipaul

I've only got 1 UK pension which gets paid into my Oz bank a/c monthly. I end up with appox $1200 (varies due to exchange rate) and it costs about $20 / month which I think is reasonable. I could open an a/c in pounds here and get it transferred in pounds but their would still be a transfer charge and so I don't think it's worthwhile. With 3 a/c's it's more difficult because you would be hit with 3 transfer charges.

I believe that you could reduce that charge significantly using Wise, probably to about $5 a month if I’ve understood your situation correctly. I am assuming that you receive about $1,200 per month into your Aussie account, and are charged $20 for the privilege.

As far as I can tell, Wise would charge you nothing to receive the GBP, and then charge about 0.4% when you convert to AUD and pay into your Aussie account. You should also check the exchange rate that you’re getting against the centre rate as there’s often a hidden charge there as well.

Last edited by dcw; Jun 2nd 2023 at 12:49 am.

Jun 2nd 2023, 12:48 am

#17

dcw

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Joined: May 2023

Posts: 13

Re: UK Pension Barclays closing account

Quote:

Originally Posted by Kiwipaul

I've had a Barclays a/c for 50 years (last 30 abroad Oz)and I only have 5,000 pound in it and I've received nothing about them closing it.

Probably just a matter of time, but who knows.

Jun 2nd 2023, 4:45 am

#18

Pulaski

Joined: Dec 2001

Location: Dixie, ex UK

Posts: 52,448

Re: UK Pension Barclays closing account

Quote:

Originally Posted by dcw

.... You should also check the exchange rate that you’re getting against the centre rate as there’s often a hidden charge there as well.

I've never used Wise myself, but it has been repeatedly reported on BE that Wise converts at the mid rate (your "center rate"), then applies their small percentage fee.

But you're correct in that many currency exchangers, including banks, may levy charges in upto three different ways: the spread (difference between the buy and sell rates), a percentage fee, and a flat fee. It is not uncommon for an exchanger to make sales pitch such as "we don't charge a fee", which may be legally correct but is ethically extremely dubious, because they then exchange at a substantial spread.

Jun 3rd 2023, 11:11 pm

#19

rammygirl

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Joined: Sep 2005

Posts: 1,205

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Re: UK Pension

Depends how the Uk pension sends the money, mine uses a forex company with good rates and as the money arrives in Aus account in dollars no charges this end. I don’t use it because I still have active Uk account. The UK state pension does similar and I believe has good rates there should be no charge from Aus bank.