It’s a thrilling time — you’ve decided to move from the green and pleasant land of the UK to the sun-drenched paradise of Australia. Before setting off on your antipodean adventure, you need to make sure you’ve got all your finances in place on the other side of the world.
Before going to your bank to transfer your life savings away from Britain, take a moment to work out what the best options are. Follow our handy guide on moving your life savings from the UK to Australia, and we can save you a significant amount in currency exchange fees.
It might be one of the last things you think about, but just spending half an hour exploring your options could save you thousands of pounds.
In this guide we’ll cover:
Read on for our advice on how to make the most of your money and get off to a great start in Oz.
There are dozens of reasons why you could be making a new life in Australia, and need the financial backing to avoid any concerns over money.
Whatever your reasons, it’s important to make the most of winding down your old life in the UK and starting a new one thousands of miles away. It’s going to be an adventure!
Transferring your savings overseas involves converting your finances from one currency to another, in this case UK pounds sterling to Australian dollars. Money transfer uses a universally agreed upon exchange rate as a baseline. This exchange rate is used to calculate exactly how much of your money will be converted into Australian dollars, based on the amount you are transferring.
Your UK pounds sterling amount will be subject to certain fees and exchange rate commissions which will determine how many Australian dollars you receive. This depends on several important factors:
You might be wondering why you want to spend time researching rates and fees when you could just transfer money via your bank or PayPal. The reason is that your bank will not offer you nearly as good an exchange rate as a dedicated currency exchange provider. Banks and PayPal typically:
For example, taking into account the average exchange rates and fees provided by banks, compared to a dedicated currency exchange provider:
On a transfer of £50,000, you could pay over £2,500 more if you use a bank or PayPal.
There are several areas that have a big influence on how much you will pay to send your money from the UK to Australia. Let’s dig into the main areas that impact how much you will pay.
There are dozens of currency exchange and money transfer providers, from PayPal or your bank to dedicated currency exchange businesses like Transferwise or HiFX. The biggest impact on your fees is how much the exchange rates they offer you differ from the interbank, or mid-market, baseline rate.
Any difference between those rates directly impacts the amount of money you will receive.
Here’s an example on converting UK pounds to Australian dollars:
These exchange rates are correct as of late June 2017. The exchange rate you are offered may vary depending on multiple factors including date, time, amount you are transferring, and various other areas.
In addition to making money on exchange rates, some providers charge additional fees, either as a fixed fee, or as an additional commission percentage. For example, Barclays Bank charges a varying fee of between £15 and £40 for currency transfers to Australian dollars.
Some banks and other payment providers charge an additional fee for sending or receiving international money into an account. This might be as an “International Wire Fee” or some other charge.
Other providers may charge additional fees, either as a fixed rate or a percentage they take as commission.
Our money transfer and currency exchange comparison tool takes into account exchange rates and fees to accurately show you how much money you could save. Here’s how much you would get from various providers if you were converting 50,000 UK pounds to Australian dollars.
|GBP to AUD Exchange Rates||Transfer Fee||Total AUD for £50,000||Difference to Baseline|
As you can see, using a dedicated currency provider like TorFX or OFX can save you a massive amount compared to using your bank — you could get between 5% and 6% more money using a currency provider.
There are some excellent choices when you want to exchange your savings the UK and Australia. Dedicated currency providers like TorFX, HiFX, OFX, and World First provide low-cost, competitive options for transferring money quickly and easily.
These providers have several benefits including:
OFX is a trusted partner of The Currency Shop. OFX customers using this link through The Currency Shop will not incur a transfer fee for their international money transfers, regardless of the size of the transaction.
Minimum transfer $250. Please note that the receiving bank or intermediary bank may charge fees on transactions.
It’s easy to setup an account with a currency provider to transfer your savings:
Once you’ve moved your savings you may still be getting an income in the UK from retirement savings, property investment, your stock portfolio, or something else. If that’s the case it’s easy to setup regular transfers from the UK to Australia with a dedicated currency provider.
You can automatically fund transfers, they will apply the correct exchange rate and deposit the money in your Australian bank account within a couple of days.
Here are a few tips on getting the most value out of your international currency exchange.
There you have it, a complete guide to transferring your savings between the UK and Australia. We hope the extra money you save means you have an even better time experiencing the wonderful nation, culture, and people of Australia.
The information provided in this article was correct at the time it was written in June 2017. Exchange rates change constantly, and therefore the rates will be different at the time of the transaction. The article is designed to give you an idea of the differences in cost of using different providers, not to give you an exact estimate of what your transfer will cost. Personal research is pivotal in discovering the best option for your own situation.