TransferWise - the real deal?
 

Guys,

My UK family and I routinely send funds, typically between $500-$2000 between each other, one or two times per year, to cover things like rental properties for vacations etc etc.

Up until now, we've used bank wire transfers, and that's always worked well. That said, I just exposed myself to all the add on costs the banks charge via using crappy exchange rates, in addition to their wire transfer fees. I had no idea the rates accounted for so much extra cost. On one recent transaction of GBP2000, the fee was GBP25, but the rate difference vs. market rates added an additional GBP38 - that's GP63 total!!! I did a search and came across TransferWise - but it almost seems too good to be true!

I wanted to check here if there were folks that could vouch for it. I assume both myself and my UK family would need to open an account with them? How does that work - do we link our bank accounts to the TransferWise account similar to Paypal? Are there costs to setup and maintain an account? Are there other costs in doing the transfer they don't list? From what I've read on their site, I fail to see how they can make enough money to keep their doors open, so I'm wondering if there's a catch?!

Greatly appreciate any advice!
thanks,
Matt

Re: TransferWise - the real deal?
 

I've used them and they were great. They are my first choice now.

Once you've setup bank accounts at each end it's very easy to move the money. You get the exchange rate locked-in and then a certain time to get the money across to them, I think its 36hrs but I might be out. Then once it appears in their account it will be forwarded over.

Answers to questions:
-Are there costs to setup and maintain an account?
NO
-Are there other costs in doing the transfer they don't list?
NO

I'm no financial guru but there are I think 3 price points in exchange. Buy prices, sell price and a mid price. This is the one they use to they still make a mid-sell fee.

Re: TransferWise - the real deal?
 

TransferWise is the real deal, used them many times, both UK>US and US>UK, it's cheap, reliable and fast.

You don't need an account to receive money, but the sender will need to set one up, then you send it direct to their bank account, but you could send it to their account for them to decide if you want. Works either way. Easiest way to send the money is using your debit card, but you can also transfer the money from your bank. Setting up the account is easy, if you have a Gmail account already you can login via that.

Re: TransferWise - the real deal?
 

Certainly for the sums you wish to transfer transferwise.com are the way to go. I have been using for about 18 months now. I have been able to pay them using my debit card on amounts up to £3000.

Re: TransferWise - the real deal?
 

I've sent well into 5 figures via Transferwise. Worked quickly and without issue.

Re: TransferWise - the real deal?
 

I've used Transferwise for years and can highly recommend them.

Re: TransferWise - the real deal?
 

I have never come across a bank offering such a good rate for such an amount, and suspect that this is not correct (but I haven't wired money through a bank for some time, and may be wrong). But even at this rate, Transferwise does nearly 4 times better for GBP to USD, in addition to there being no fee.

Re: TransferWise - the real deal?
 

There is a fee graduated by the sum you transfer isn't there? It looked like it to me.

Ive been looking into the best way to transfer some of my UK balance and while my bank (First Direct) will only charge me a flat £4 fee, transfer wise were charging plenty more for the sums I'm considering, but at a far better exchange rate. I expect I will be using transfer wise in the end but haven't finished my comparisons.

Re: TransferWise - the real deal?
 

TransferWise charge a flat 0.5% fee. So for a £2,000 transfer, that's £10. I believe there's a £2 minimum.

Your money is not actually sent across the pond.

Your money is deposited into TransferWise' UK bank account and they pay the US recipient from their US bank account. The funds you deposited in the UK account are then used to fund a 'transfer' going the other way.

The system relies heavily on the assumption that similar amounts are being transferred each way. :fingerscrossed:

Re: TransferWise - the real deal?
 

I use TransferWise regularly and have never had an issue - and their customer service is very good if you ever have questions. As Chawkins99 says, their system works by having local accounts set up all around the world. You transfer your money to their local account in say, the UK, and they then take the corresponding amount out of their US account and transfer it to you eliminating the need for costly overseas charges.

Re: TransferWise - the real deal?
 

I have used Transferwise several times for GBP to USD transactions and the only charge has been 0.5% of the amount transferred.

In order to make a comparison with a bank you need to look up the actual exchange rate yourself at the time that you make the transaction with the bank, because the bank is not going to give it to you. But Transferwise tells you the actual exchange rate (or spot, mid-point, commercial or whatever the term is), and you can check it independently, and I have found it to be the same when I have used it.

Re: TransferWise - the real deal?
 

The percentage spread on small amounts can be substantial and £38 on £2,000 is only 2%, when banks typically charge 4%-5% above/below the mid rate, so buy dollars at say $1.14 and sell at $1.26 around a mid rate of $1.20.

Re: TransferWise - the real deal?
 

I recently moved back from the USA and wanted to transfer my savings back quickly and with a good exchange rate. Looking through all the usual places, TransferWise appeared to be able to give me the most £ for my $, and was incredibly easy and efficient to use (I'm not in any way sponsored by them by the way).... although there was a limit on the amount you could send back in a 24 hour period. Would definitely recommend.

Re: TransferWise - the real deal?
 

Another vote for Transferwise from me - use them monthly with flawless and fast service.