Does anyone know what on average is the amount in euros if you have your pension paid into a spanish bank account I'm just wondering if I get more euros having it paid into uk account and then transfering it into my wise account and converting or have it paid into my spanish N26 account.

The UK government get a good exchange rate through the banks due to the amounts exchanged annually so I would expect it to match Wise exchange rates. I used to have my UK pension put into Wise and forward it when the rates were favourable but having it paid directly into my Spanish bank account gives me free banking which IMHO is a better deal.

Steve

Thank you that helps

Depends on your circumstances. While the British Government may have good rates, surely they are still subject to the strength of the pound on the specific day you are paid. Presumably the amount you get in euros goes up and down.

If you need/want your UK pension in Spain as soon as it's available, every 4 weeks, not much advantage using Wise.

But if you have more flexibility in your income and can leave it in your UK bank for a while, you could transfer chunks of it when the pound is high. And meanwhile earn a bit of interest in a UK savings account, which is what I intend to do.
Although of course it's much easier if it simply appears in your spanish bank without you doing anything.
And the point about a pension giving you free banking is also a good one.

thank you

When we were living in Spain we had our pensions paid directly into our Spanish Bank accounts, it was always said that they got the best exchange rate by doing it direct, the average amount is difficult to say as the exchange rates differ daily.

From my experience it is NEVER beneficial to receive funds in a currency that differs from your account currency, as the receiving bank (especially a "traditional" one) then does the conversion at its own base rate that is almost always horrendous.

This has nothing to do with the daily rate going up or down as that is natural and has nothing to do with whether you're getting a good deal or not on a given day - this is solely about the fx spread (how tight the rates are between the buy and sell price at any given time).

You want to be as close to the mid-rate as possible at the time of the transaction/conversion.

I have my state pension paid direct to my Spanish bank, yes it fluctuates with whatever the exchange rate is but the rate you get for day your pension is paid in is probably as good as you can get anywhere else. As has been mentioned many Spanish banks if pension is paid directly in get free banking so that is a useful bonus. My private pensions I have paid to my UK bank and top up my Spanish account as and when needed and trying to take advantage of exchange rates. That works for me I know I have income every month in Spanish account and can top up or pay from UK account as and when needed or take advantage of improving exchange rates. Not sure if it's the best way but works for me.

thank you

Yes, that can be a money-saver indeed, and could well make the fx spread less relevant as the monthly pension amounts aren't that big.

But if someone was sending over funds to purchase a property in Spain I would advise against sending GBP to a EUR account and just letting the bank convert it automatically (at what will likely be a very, very bad rate).

The currency conversion is not done by the local bank. It is done by the UK government at commercial rates and is therefore normally an excellent deal.

So I understand there is no currency conversion involved when it comes to the receiving bank so the transfer is sent in EUR (to an EUR account)?

Correct

Small point (from the DWP) -

I think the DWP use an exchange company with links to America? as often payment dates are affected not only by UK Bank Holidays but USA ones as well?