If you’ve ever transferred money abroad either to a friend, family or for business you may have noticed the hefty transaction fees, and banks use anything but favourable exchange rates. By the time you conduct your transfer, not only do the banks add a basic fixed fee, but the poor exchange rate often can add another few % in the bank's favour.
Luckily there is TransferWise, an online money transfer service. TransferWise enables you to transfer money abroad for as much as 8 times cheaper than you would with your bank. The technology used is based on peer-to-peer lending. If you want to transfer Dollars to Pounds, they will find someone who wants to make the transfer in the opposite direction.
The system matches the currency flows and bases the fx rates on the current mid-market exchange rates, and then pays you from a local account, so the money never crosses borders, meaning you avoid the ridiculous fees your bank gives you and you save a tonne of money in the process on said fees and by getting the real mid exchange rate.
To make a transfer is super-easy. Once your account is set up, and you have either linked your bank account directly to your transfer account or your debit card. Type in your recipient’s details and send the money. You will then receive a confirmation email when the money has been sent and one when it’s been paid to the recipient.
This is a perfect app for many different people if you’re a small business and you transfer a lot it is well worth it as you’ll save a tonne in the long-run and even for personal purposes you will instantly save. TransferWise will always be transparent about their fees, however, they vary but it’s usually a minimum fee of £2 for smaller transfers and then 0.5% for larger transfers, a fraction of what banks charge.
What's new in 5.8?
- We fixed some bugs and made some minor improvements to make the app work better.
TransferWise is a great app which we recommend, the only issue we’ve heard of is that sometimes it can take a long time for your transfer to get through. So keep an eye on this and make sure you transfer with plenty of time if you need the money to be there at a certain time.