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Charges for receiving a euro transfer into a sterling current account

Last post Mon, Apr 07 2008, 10:29 PM by Gefaa. 13 replies.
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  •  Mon, Apr 07 2008, 10:29 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    OH that First Solutions. But they were a tin-pot outfit with a closed community which disappeared along with its community's money. Not a little whiff of fraud. Not sure you can compare them with a listed company like Ozforex - but then again in these days of Northern Rock who can you trust? Still waiting on a personal recommendation but I suppose at least these guys have a referral from one of the moneyfact sites.
    • Post Points: 5
  •  Mon, Apr 07 2008, 3:19 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    First Solutions Money Transfer Ltd were a small organisation that offered "specialist" services for overseas workers wanting to send money home to Bangladesh. Their "specialist" services no doubt extended to anyone who wanted to send money and no doubt they offered no more than your high street bank. When they went out of business there were several million pounds "in transit" that never reached the intended recipients.

    http://en.wikipedia.org/wiki/First_Solution_Money_Transfer

    • Post Points: 20
  •  Mon, Apr 07 2008, 12:20 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    I also consider setting up something like an Interactive Brokers account and using this as a way to get access to market spot rates. Don't know whether this is worth it but for regular currency conversions this access could be a real saving.
    • Post Points: 5
  •  Sun, Apr 06 2008, 11:35 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Its not the rate thats the problem. I dont mind a little skmming but the mindless 10% carve up is an outrage. Who are First Solutions? Related to Northern Rock by any chance?
    • Post Points: 35
  •  Fri, Apr 04 2008, 3:18 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Yes, small one-office businesses will sometimes give a better rate than your high street bank but you must decide whether or not you are willing to trust someone like this. The many customers of First Solutions made the wrong decision in this respect.
    • Post Points: 20
  •  Fri, Apr 04 2008, 9:51 AM

    Re: Charges for receiving a euro transfer into a sterling current account

    A currency house such as ukforex seems to give the best rate and transparency so what you see is what you get and it takes days rather than weeks (RBS quoted 6-10 weeks) and you can even lock in a rate. You have to fax/post/present passport standard id check etc first for money-laundering purposes but once the facility is set up it looks like a long term winner. They do not accept cheques as such so you need a Euro bank account. You authorise a transfer from your euro account to UKForex euro bank account, they make the trade and transfer it to your target account.

    If you already have a euro account in euro zone you are ideally placed. You can pay cheque in there at no/low cost, then make the transfer using a currency house at a time to suit you/the market.

    If you do not have a Euro account already then you have to do the ID checks twice in effect, one for the new Euro account, one for the Forex house, and finding a euro account in this country is a challenge - especially one with a debit card. A debit card is handy because if you use a debit card abroad to withdraw cash you are always getting the best rate.

    with UKForex, yesterday €60K would have traded at 1.2424, yielding £47K or somesuch.

    Banks such as RBS/Virgin on the other hand want to take 10% of any cheque over 3K as a charge as well as giving a bad exchange rate, in this case C.£4.6K after the transaction completes and yesterdays quoted rate (1.3309 if the transaction had completed) was nearly a full Cent over the UKForex quote, making €60K worth £4K less than with UKForex then take off £4.2K in charges, so seems we should avoid big banks at any cost.

    Barclays do offer a (reportedly good) Euro account to their personal customers but you have to transfer salary etc in.

    If you do not want to set up a new euro acoount, and don’t mind losing out on .05 of a cent in currency conversion then Nationwide (or any of the mutuals) seem to be the best bet for transparency and low charges (£20) and although I have hankered after a euro account for years probably this is what we shall end up doing as life is still short. They are so good-natured. They seem to take rates from the big banks, today quoting 1.2929 vs UKForex 1.2819. I did not bother going back to RBS.

    • Post Points: 20
  •  Fri, Jan 25 2008, 10:55 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    For a possibly happier future something you might want look into is the SEPA issue (starting next Monday) which (hopefully) over the next years changes Cross-European bank charges a bit.

    But for the moment my best advice is: Stay away from HSBC! - They'll charge whatever they can out of you. (-Regarding exchange rates this website even lists them as the (by far) most expensive! And most of the brach staff I have been dealing with regarding transfers to Europe are seriously clueless, although I found some real good Ladies running the Canada Water branch (really helpful!) and a knowlegable guy somewhere on a Tottenham Court road branch. - Most of the other branches I used (and Telefonbanking anyway) in the last 5 years I sometimes wondered if they ever heard of the Euro...

    F.e. some branches used to try to process my transfers to Germany as so called "World Pay" - yes that's a full 21,- charge on the books, well done! Lucky enough I knew that for Europe even HSBC offered (had to) a different transfer (the standart way in other European countries up to 12500,- Euro (by the time) - for "only" 9,- (formerly the cheapest i could find) You won't believe how many staff didn't know about this and even less how to do it after they rang the help line and it confirmed this payment exists.

    Funny enough now with all the default charges claims they seemed to have standardised all their foreign currency charges to 15,- - time to leave the sinking ship...since I certainly wasn't there for the (non-)service 8)

    Another idea for you - look into Citibank! - (That's where I am currently transferring to - 1 account in UK, 1 in Germany) Transfers between all their branches worldwide are free - yes without charge that is. - Obviously they'll still charge you their "citibank rate of the day" which probably is marginaly better than HSBC (no illusion here, they all know how to make money) but hey saved 15/21,- already per transfer. Also if you have more than GBP 2000,- with Citibank (current, savings, shares...) their UK-Euro account is free of charge - so just open another one... + that one in Switzerland and the Cayman Islands etc.

    Anyway you see where this is leading - which is why SEPA (Single European Payment Area) is aiming at making all payments in Europe domestic payments. - And yes thet includes UK, Switzerland and others in the EEA.

    • Post Points: 20
  •  Thu, Jan 24 2008, 4:18 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Yes I will look into opening an Irish account. Good idea. Although I still need to get this back over to the UK and into sterling somehow. Went into HSBC today and the only thing they suggested was to just keep a sterling account, pay the euros into that each month, and let HSBC go through the hassle of changing it over from euro to sterling. The only problem being the £21 charge and the poor exchange rate that I will inevitably get. Cant believe this is so difficult!!!
    • Post Points: 20
  •  Thu, Jan 24 2008, 3:22 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Typically you can expect to lose between 5% and 10% on the exchange rate.

    Most UK based euro and dollar accounts either have high charges or are geared towards savings so require a high balance. I reckon that you should enquire about opening an account in Ireland, France, etc. It may be possible to do this by email, post, fax and phone or a visit to a branch may be necessary. If you use one of the larger Irish/French/etc banks it should come with internet banking, no charges and so on.

    • Post Points: 20
  •  Wed, Jan 23 2008, 10:05 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Hi, I am in exactly the same situation now- live in UK, currently have a sterling account with Barclays, but am now getting paid in Euros from an Irish company. I dont really know what to do! Barclays have said they can set up a euro account, but I will have to call up every month when my money goes into the euro account, to transfer it back into my sterling account. I dont think there is a charge, but I am at their mercy as to what exchange rate they give me on the day. I have asked a number of people how different the rate is that I will get, from the inter-bank rate of the day, but I can not get a straight answer at all!!!

    One bank called Cater Allen seems to offer a sterling AND euro account. From their website it appears that you can transfer from one to the other yourself, without any charges-hopefully this can be done online. Only discovered them tonight and will call them tomorrow to find out more!!

    If anyone else is getting paid by Euros living in UK, what do you do??? There must be an easy solution, that is charge free???

    • Post Points: 20
  •  Wed, Dec 05 2007, 8:51 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    I received a euro payment into a sterling Nationwide account for an eBay sale. It was only a small amount but the charge was not much (perhaps 50p but I can't be sure).

    In my opinion though you would be best keeping a euro account, perhaps with an Irish bank, and have your wages paid into that. If you have any outgoings in euros, like sending money home, with your current arrangement you'll be paying an awful lot of exchange fees.

    Many UK banks and building societies offer euro accounts but the deals tend to be better if you open the account in a euro country.

    As to whether the £10 charge is common practice, the phrase that the banks tend to overuse in response to queries about unexpected charges is "standard banking practice", but there's no reason why you should accept such charges without question.

    • Post Points: 20
  •  Wed, Dec 05 2007, 8:43 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    At least you are being paid in Euros. Spare a thought for us poor saps who are unfortunate enough to be receiving our quarterly residuals in American dollars.
    • Post Points: 5
  •  Wed, Dec 05 2007, 7:27 PM

    Re: Charges for receiving a euro transfer into a sterling current account

    Its a pretty difficuly situation to be in...unfortunately most banks will charge for having to convert a foreign currency into your sterling account. You probably have two options,

     

    1. Ask your work to ensure the payments made arrive in the beneficiarys account (you) in sterling.

     2. HSBC do offer a euro account which you can transfer your wages in without any fee but when you do manual transfers between your HSBC euro account and sterling account you will get the exchange rate on the day.

     

    Hope this helps

    • Post Points: 20
  •  Tue, Aug 21 2007, 11:18 AM

    Charges for receiving a euro transfer into a sterling current account

    I've recently moved to the UK from Ireland. I'm still working for an Irish firm and as such am paid in Euros. I've just gone into Alliance and Leicester to enquire about setting up a current account. They had a £10 fee for receiving a euro transfer, given that a retail bank probably has a decent bid/ask spread on currency exchanges this seems a little steep on top of that.

     

    Is this sort of fee common practice? Is there any way around this? Does anyone not charge this?

     

    Cheers

     Karl
     

    • Post Points: 35