At present, I have lived abroad in Northern Ireland for nearly three years. During this time, I have researched endlessly how I can transfer money between my UK and US accounts as frugally and securely as possible. However, every road I have ventured down has resulted in countless fees and heartbreak!
I am an avid traveller that will likely live abroad most of my adult life, but it is important for me to keep connections to home, including financial connections. However, my relationship with transferring money back home has been a tumultuous one, to say the least.
It is so important to me to have a cost-effective wire transfer system because I have to transfer money home each month to pay off bills back home. You simply cannot do this with debit cards outside of the US, making wire transfers a necessity for me.
I have tried everything to avoid as many unnecessary and extortive fees as possible with very little success…
That is, until I found TransferWise!!!
TransferWise is a nomad’s dream come true. But, to understand how I got here, you have to understand where I’ve been.
Fool me once, shame on you…
My first futile attempt at transferring money from my account in the UK back to the US was probably the one that stung the most. I initiated a direct bank transfer from my UK account to my home bank and paid the price, quite literally.
I was charged £20 from my UK bank and given a much lower exchange rate ($1.23/£1 vs the Google rate of $1.31/£1). My US bank also proceeded to tack on another $15 charge, just to rattle my cage a bit more. In total, I lost around $75 of my well-earned cash, purely because I live abroad.
Fool me twice…
The second time, I thought I had everything figured out. I had contacted both banks previous to the transaction and they both agreed not to charge me.
“Sorted!” I thought to myself. “Sure, the exchange rate isn’t the greatest, but no extra fees. Can’t beat that!”
But, there, of course, was a catch. There’s always a catch!
Here’s a bit of the fine print that banks neglect to inform you:
There are typically three banks involved in an international wire: Your host-country bank, your home-country bank and an intermediary bank (where they bank on the fact that nobody reads the fine print) where your money rests (aka extorted from you) before heading to its final destination.
This is where they get you. Both of your banks can legally claim that they will not charge you because, technically, they won’t.
Dirty devils!!!
So, though you think you are incurring zero fees, not only are you getting an uncompetitive exchange rate, but they are also taking, typically, around $20 or so in fees out of your transfer. They do not have to report this to you or even claim a legitimate reason for doing so. In all, I still lost about $50 on this transaction!
…shame on me!!!
Rock Bottom
The third time, I tried my first app, which I will leave unnamed, but would be easily recognisable to anyone who has ventured down this lonesome road.
This app advertised no fees and, again, I went into the transaction over-confidently (I’m a slow learner). They offered the same, dismal exchange rate listed above, but I was taken in by their ‘no fees’ advert and obliged the transaction.
I, again, was struck by intermediary fees, which this company returned to me only because I am irritating as hell.
I was irate at this point. I am not naïve or irrational. I do realise there will be fees associated with international wires, I get that! But, is it too much to ask that these fees be reasonable in the globalised world of today? I don’t think so…
Just when I thought all hope was lost, however, an advertisement for TransferWise popped up on my Facebook page. Why I trusted Facebook with an ad, at that point in time (remember Cambridge Analytica?), is beyond me. Call it desperation, but I swallowed my pride and clicked on it and a whole new world opened up to me!
Redemption
After some (understatement) research, I opened up a free ‘Borderless Account‘ with TransferWise and, suddenly, I went from zero to a hero! As stated on their FAQs, having a borderless account is like having local accounts all over the world!
“It is a multi-currency account that lets you keep money in 40+ currencies and convert between them at the real exchange rate whenever you need.”
You have to imagine, I found this hard to believe. This type of account obviously appeals to travellers and expatriates around the world and has an immediate impact on one’s ease of payments and financial freedom. However, I would have to see it before I could believe it!
Truth and Reconciliation
So, I decided to give it a shot. I wanted to transfer $400 to my US checking account in order to pay off a credit card bill back home. It was exchanged at the Google exchange rate of $1.31/£1 instantly by direct debit, which cost me £306.85. TransferWise extracted a measly fee of £1.83…
There simply is no comparison!!!
I’m sure you can imagine how ecstatic I was. I was then able to transfer this instantaneously to my US account, completely free, and pay off my credit card bill in record timing.
Utilitarianism
Perhaps even greater are TransferWise’s travel benefits. I signed up for their free debit card and used it on my recent trip to Malta. I uploaded £250 directly from my UK account first (it’s free to upload any currency directly to the app) before converting over to Euros. The conversion rate was actually a few tenths of a cent better than the Google rate at 1£/1.15048 Euros, awarding me with 286.62 Euros, costing me a putrid £0.87.
with 1 free ATM withdrawal every 30 days
With my new debit card loaded with the local currency, I was ready for my trip. I could use the debit card in Malta the same way I would if owned a debit account in the country. No international fees and you get one free ATM withdrawal every 30 days with the debit card – I could pull out as much money as I wanted and not pay a penny extra! I was even able to upload my account information to Malta’s Uber-like taxi app, Ecabs, and never had to pull out my wallet when exiting the vehicle. This ‘vagabond’s wallet‘ makes you feel at home no matter where you are!
Freedom
Listen, it is absurd to pay fees for travelling. Travelling is all about freedom! The last thing you want to worry about while travelling is your wallet. TransferWise makes the travel experience that much more pleasant and secure.
I remember I returned home to the states last summer. I was on a layover in Charlotte and naturally was craving some BBQ. I had brought £260 cash with me to transfer once back in the US. I decided to take a gander at the currency exchange on my way to murder some pulled pork and cheesy grits. The lady at the currency exchange said she would give me $290 for my pounds. I started laughing at her until I realised she was serious! I couldn’t believe it!
She nearly made me lose my appetite… nearly…
Wanting to make a scene, I had to remind myself that I was in an airport and probably not the best idea to start causing a riot!
I know there is no such thing as a global passport or some magic wand that will all of a sudden bring borders crashing down and make travel as seamless as someone like me would prefer. But, for a fact, I will never get fleeced on my way to the BBQ joint ever again, and I’ll take that as a welcome consolation prize!
Sign up for TransferWise here!!!
