If you're receiving money from abroad, there are steps you can take to guard against volatile exchange rates, high fees, and commissions. Here’s what you need to know to maximize the value of your international transfers.
Key Considerations for receiving money from abroad
Transfer Fees
While many associate fees with sending money, banks often charge fees for receiving foreign currency too. If you're transferring money from abroad to yourself, whether due to inheriting property or moving back to the UK, you may incur charges on both ends. Sending fees can be as high as £30 per transaction, and receiving fees typically range from £2 for amounts up to £100, and up to £7 for anything over £100. Regular monthly transfers can add up, costing you up to £450 annually.
To avoid these fees, consider using a foreign exchange specialist like Caxton instead of your bank.
Exchange Rates
The exchange rate you find online, often the ‘interbank rate,’ is used by banks to trade currencies but is not usually available to individuals. Banks add a fixed percentage to this rate, giving you a less favourable rate. In contrast, foreign exchange specialists source competitive rates from multiple providers.
How to receive money from overseas
Bank Transfer
Bank transfers are convenient but often come with high fees and fixed exchange-rate margins.
Physically (e.g., Cheque or Cash)
Receiving cheques is traditional but slower than online transfers. Cash pick-ups and home deliveries are other options but can also incur additional charges and take more time.
Currency Specialist
Currency specialists offer competitive exchange rates without fees. Using a service like Caxton, you can benefit from expert guidance and currency tools. Services such as Caxton can send you rate alerts and market updates, helping you make informed decisions about your money with over the phone support and self-serve online platforms.
How does it work?
What Bank details are needed to receive money in the UK?
To set up a transfer, you need your name, account number, IBAN (International Bank Account Number), BIC (Business Identifier Code), or SWIFT code, and details of the banks involved. If someone else is sending you money, provide them with this information.
How long does it take to receive money from abroad?
The processing time depends on the currency and origin of the transfer. Frequently traded currencies like the pound, dollar, or euro are processed quickly, sometimes on the same day. Typically, funds should reach you within one or two days if all details are correct.
How much money can I receive from abroad?
The transfer limit varies by provider. With Telegraph Media Group International Money Transfers, you can transfer a minimum of £100 or equivalent. Online transfers cap at £100,000, but you can handle larger amounts over the phone with no upper limit.
Book a call.
Receiving money from abroad can be simple and cost-effective if you use the right services. By choosing a foreign exchange specialist like Caxton, you can avoid high fees and poor exchange rates, ensuring that more of your money reaches you. Book a chat with one of our specialists today, book here.
