In this post we’re going to look at the options available for sending money overseas from Australia, and provide a few little tips and tricks to help you get the best exchange rates and save money in the process.
Let’s start by comparing the two main ways people send money out of Australia: using bank transfers, and through specialized online services.
Sending Money Overseas Through Banks
This is the first port of call for most people living and working in Australia long term who need to send money overseas. The natural tendency is to simply ask your bank what they can do for you when it comes to transferring money overseas out of Australia. What you’ll realize pretty quickly, however, is that most Australian banks charge a small fortune for these kind of transfers. There are typically hefty fees involved, but that’s not the worst part – where you really lose out when transferring through banks is on the exchange rate.
Sending Money Online from Australia
There are a wide variety of online services now offering money transfers out of Australia (OrbitRemit included) and a good number of them are faster, cheaper and offer better exchange rates than the typical bank deals.
Online transfer companies tend to be able to offer consumers better deals because they’re not burdened with the same costs that the major banks have. Some people are a little wary of online transfer services for security reasons, but there’s no basis for these concerns – a trustworthy online transfer service uses the same technology and security processes that a major bank uses when transferring money internationally, so from that perspective there is no difference.
However, a transfer service like OrbitRemit can actually move your money to its destination faster than most banks (we pay your recipient the same business day we receive the funds – banks by comparison can take up to a week depending on the destination).
Finding the Best Exchange Rates
If you’re sending a large sum or you send money on a regular basis, it’s a good idea to shop around a bit on exchange rates. There can be huge variation between different banks and money transfer services, and bear in mind no single service will have the best rates for every destination country. In other words, you need to shop around for the service that best fits sending money from Australia to your particular destination, in terms of the fees involved, the exchange rate on offer, and the amounts and frequency of your transfers.
For OrbitRemit, some of the most popular destinations our Australian customers send to include the UK, NZ, India and the Philippines, and we offer highly competitive deals on transfers to all these places. You can see a full list of destinations we can transfer to here.
Watching Out for Hidden Fees
You also need to be careful when it comes to exchange rates, because some banks will actually process your money at a different rate from what they publicly show you. The same goes for fees – it’s not uncommon for someone to process a transfer through a bank out of Australia, only to find they end up getting stung with fees on the receiving end as well.
Make sure you do your homework on whatever service you use and ensure the fees and exchange rates you see upfront are all you have to pay so there are no nasty surprises in the process.
At OrbitRemit, we are very open and upfront with our fees and rates – what you see is exactly what you get. And when you sign up with us, your first money transfer out of Australia is 100% free – just click the ‘Get Started’ button below to give it a try.