No matter why you're doing it, the process of sending money overseas can
seem complicated. In this video we're going to show you how to send money to
Australia. Work out the cost and make the whole thing easier and more
affordable. When you're transferring money to someone in Australia there are
four things you need. The account name of the person you're paying, their account
number, their BSB and the bank's SWIFT code. Now, you'll only need the BSB
if you're transferring to an Australian dollar account which means you might not
need it if you're transferring to a foreign currency account in Australia.
The process can be full of hidden costs but once you know what these are you can
work out how much your transfer will be. You need to look out for the exchange
rate, the fees for making the transfer and the fees for receiving it.
Exchange rates can be confusing for three reasons. Firstly, they change all the time.
Secondly, every company will offer different exchange rates and thirdly, you
need to be careful of how it's quoted.
There are a few fees you need to watch out for. The first one is the transfer
fees. Some companies don't charge a transfer fee but when they do it's
generally fixed or a percentage of your transfer. The second fee can be harder to
spot it's in the exchange rate they offer you which is why the rate you get
for your transfer is usually not what you'd see on Google or XE. Finally, there
is the fee for receiving the payment. We looked at major Australian banks and
found that this fee could be anywhere from $10 to $20 Australian dollars. Now,
this fee is out of your control but it's still important to find out what it is
and whether you or the person you're paying is going to cover it.
Now that you have the information you need, let's have a look at ways you can send money to
Australia. You can use your bank but they can be expensive because of their large
margins and high fees. This is where money transfer companies come in. It's
essentially your alternative to using a bank. These are companies that specialise
in making transfers from one country to another. They offer safe and quick
transfers and are almost always cheaper than your bank.
There are lots of money transfer companies to choose from and the best
one for you will depend on three factors. How much you're sending, where you're
sending the money from and how quickly you need it sent. Let's have a look at
some options based on your transfer size.
If you're making a transfer of less than $10,000 you'll want to look for a
company that doesn't have a minimum transfer amount and doesn't charge fees.
Good options here include TransferWise XE or WorldRemit. Now, if you're making
a transfer of more than $10,000 you want a company that gives
you competitive rates. Both OFX and WorldFirst
are good here. Just look out for their minimum transfer sizes and remember they
might charge a fee if you're transferring less than $10,000.
Finally, if you're making a really big payment of say more than $50,000 it's really the
rate you want to focus on. Here we'd be comparing the rates of multiple
companies so that you can find the best deal.
Now once you've decided on who
you'd like to use, you'll need to go to their website to set up an account.
Depending on the company you might need some ID and proof of address. Then, when
your account is set up and verified you'll be able to fill in the details of
who you're paying. This is where you'll need the account and BSB numbers we discussed
at the start of the video. Once all the details are done you'll need to pay for
your transfer. Every company is different but common options include bank transfer,
debit or credit card. The person you're paying will generally receive the payment
in two to five business days.
The best way to decide on the company for you is to compare the total cost of
the transfer. You work this out by looking at their fees, the exchange rate
and the amount you're transferring. Now this can get a bit complicated so a
comparison table can be pretty handy. With our comparison tool, you tell us how
much you're transferring and we'll compare the rates, fees and total cost
for you with multiple companies. And rank them from cheapest to most expensive.
From there you can then read reviews about the companies, learn how to make a
transfer with them and go to their site when you're ready. With rates, fees and so
many other factors to think about sending money to Australia can seem
complicated. But it doesn't have to be once you know what the costs are.
Remember that while your bank can be handy, there are other options that are a
lot more affordable. The easiest way to find the best option is to use a
comparison tool like ours which will allow you to compare the rates of large,
reputable and secure money transfer companies in one place.