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Best bank for receiving Euros
Thread poster: Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
United Kingdom
Local time: 17:15
Member (2013)
German to English
Jun 10, 2014

A lot of my work is paid in Euros and at the moment, I bank with Natwest. Their fees can be as much as £7 per payment, which doesn't sound like much, but can add up over the course of a year, and it just seems stupid to throw money away.

After doing a little fishing around, it seems that Santander, HSBC and First Direct (and possibly Barclays?) do not charge fees for receiving Euros, but what I'm interested in is exchange rates. Natwest has a handy currency converter on their websi
... See more
A lot of my work is paid in Euros and at the moment, I bank with Natwest. Their fees can be as much as £7 per payment, which doesn't sound like much, but can add up over the course of a year, and it just seems stupid to throw money away.

After doing a little fishing around, it seems that Santander, HSBC and First Direct (and possibly Barclays?) do not charge fees for receiving Euros, but what I'm interested in is exchange rates. Natwest has a handy currency converter on their website which I use sometimes, but I've looked on the websites of those three banks and have found no such thing.

Does anyone have any experience in receiving Euro payments into these banks and have any knowledge of how their exchange rates compare to others? Maybe I'm just cynical, but I'm convinced that if they aren't going to sting me with a fee, they're gonna sting me with awful exchange rates!

I wouldn't be looking to use any of them as a main bank account, only to receive money, which I would then transfer to my Natwest account.

Thanks for your help!
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Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 17:15
Member (2009)
Dutch to English
+ ...
I’m still using Smart Currency Exchange Jun 10, 2014

Hi Nick,

As far as I know, not charging a fee for receiving Euros is a recent thing. Some sort of new EU rule.

I have two accounts:
• 1x euro account in Spain and
• 1x sterling (HSBC) account in the UK.

My € clients pay me into my Spanish account, and I then use Smart Currency Exchange ( a currency echange broker) to send my euros to my UK bank. I started doing this a few years ago, back when HSBC still charged a hefty fee for receiving
... See more
Hi Nick,

As far as I know, not charging a fee for receiving Euros is a recent thing. Some sort of new EU rule.

I have two accounts:
• 1x euro account in Spain and
• 1x sterling (HSBC) account in the UK.

My € clients pay me into my Spanish account, and I then use Smart Currency Exchange ( a currency echange broker) to send my euros to my UK bank. I started doing this a few years ago, back when HSBC still charged a hefty fee for receiving euro payments. I did a bunch of research at the time and this was the cheapest way to do things. Smart Currency Exchange doesn't charge me any fees, and always seems to offer me the best rate available at the time of sending the funds. To send myself money, I just call my special number and am connected straight to a trader, who then quotes me the best rate he can offer at that time.

I would therefore also be interested to see what kind of exchange rates HSBC is currently offering. My gut feeling is that Smart Currency Exchange is going to be cheaper, but I might be wrong. The next time I send myself some money from Spain I will note down the rate my SCE trader quotes me and then call up HSBC and see what they would have been able to offer me (and then report back here).

Michael
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Richard Foulkes (X)
Richard Foulkes (X)  Identity Verified
United Kingdom
Local time: 17:15
German to English
+ ...
HSBC Jun 10, 2014

I've used my account with HSBC for years. No transfer fees. Haven't shopped around to compare recently but I've just looked at a recent transfer advice note from 1 April and the exchange rate applied was 1.2364. Hope that helps.

 
Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 17:15
Member (2009)
Dutch to English
+ ...
Ridiculous hidden fees! Jun 11, 2014

Wow, have a look at the table on this page with fees charged by UK banks when you send £1,000 to a Euro account (I do it the other way around, but assume that the results will be comparable):
<
... See more
Wow, have a look at the table on this page with fees charged by UK banks when you send £1,000 to a Euro account (I do it the other way around, but assume that the results will be comparable):

https://transferwise.com/blog/2014-06/sir-richard-branson-joins-our-mission-to-stamp-out-hidden-fees/?utm_source=TransferWise%20DB%20Part%202%20(to%20June%209,%202014)&utm_campaign=0a3004b7f4-_theysayyoupay6_10_2014&utm_medium=email&utm_term=0_ff9a4a44dd-0a3004b7f4-99890297

“Exposed – the hidden cost of money transfers

Banks hide huge fees in unfair exchange rates. Here’s what it REALLY costs to send £1,000 to a Euro account.

HSBC: They say £4 - You pay: £34.09 (incl. hidden fee) ... actual fee = 3.4%
LLoyds Bank: They say £10 - You pay: £34.72 (incl. hidden fee) ... actual fee = 3.5%
NatWest: They say £10 - You pay: £50.66 (incl. hidden fee) ... actual fee = 5.1%
RBS: They say £10 - You pay: £50.58 (incl. hidden fee) ... actual fee = 5.1%
Santander: They say £25 - You pay: £54.01 (incl. hidden fee) ... actual fee = 5.4%
Post Office: They say FREE - You pay: £38.05 (incl. hidden fee) ... actual fee = 3.8%
Western Union: They say £10 - You pay: £43.61 (incl. hidden fee) ... actual fee = 4.4%

TransferWise: They say £5 - You pay: £5 (incl. hidden fee) ... actual fee = 0.5%


Comparison table shows costs of sending 1000 GBP to EUR, from UK to Germany online. Telephone research was carried out by independent research company. Charterhouse Research Ltd. from 6-9 June 2014.”


Although this is from an advert from a company called TransferWise, so it too may be misleading, I have a feeling their figures are more or less correct.

I'm not sure how the firm I use to do transfers (Smart Currency Exchange) compares to TransferWise, but I am going to call them and find out.

Michael




[Edited at 2014-06-11 15:34 GMT]

[Edited at 2014-06-11 15:35 GMT]
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Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
United Kingdom
Local time: 17:15
Member (2013)
German to English
TOPIC STARTER
Hmmm Jun 11, 2014

Michael Beijer wrote:

Wow, have a look at the table on this page with fees charged by UK banks when you send £1,000 to a Euro account (I do it the other way around, but assume that the results will be comparable):

https://transferwise.com/blog/2014-06/sir-richard-branson-joins-our-mission-to-stamp-out-hidden-fees/?utm_source=TransferWise%20DB%20Part%202%20(to%20June%209,%202014)&utm_campaign=0a3004b7f4-_theysayyoupay6_10_2014&utm_medium=email&utm_term=0_ff9a4a44dd-0a3004b7f4-99890297

“Exposed – the hidden cost of money transfers

Banks hide huge fees in unfair exchange rates. Here’s what it REALLY costs to send £1,000 to a Euro account.

HSBC: They say £4 - You pay: £34.09 (incl. hidden fee) ... actual fee = 3.4%
LLoyds Bank: They say £10 - You pay: £34.72 (incl. hidden fee) ... actual fee = 3.5%
NatWest: They say £10 - You pay: £50.66 (incl. hidden fee) ... actual fee = 5.1%
RBS: They say £10 - You pay: £50.58 (incl. hidden fee) ... actual fee = 5.1%
Santander: They say £25 - You pay: £54.01 (incl. hidden fee) ... actual fee = 5.4%
Post Office: They say FREE - You pay: £38.05 (incl. hidden fee) ... actual fee = 3.8%
Western Union: They say £10 - You pay: £43.61 (incl. hidden fee) ... actual fee = 4.4%

TransferWise: They say £5 - You pay: £5 (incl. hidden fee) ... actual fee = 0.5%


Comparison table shows costs of sending 1000 GBP to EUR, from UK to Germany online. Telephone research was carried out by independent research company. Charterhouse Research Ltd. from 6-9 June 2014.”


Although this is from an advert from a company called TransferWise, so it too may be misleading, I have a feeling their figures are more or less correct.

I'm not sure how the firm I use to do transfers (Smart Currency Exchange) compares to TransferWise, but I am going to call them and find out.

Michael




[Edited at 2014-06-11 15:34 GMT]

[Edited at 2014-06-11 15:35 GMT]

As it is advertising for their company, I'd be a bit sceptical. Their fee for Natwest is definitely wrong (it's £7) and HSBC and Santander are free. Oddly enough, there are times when I've compared money I've actually received in my account with what Natwest's currency calculator says I should receive, and the amount paid in to my account has actually been higher! So I don't know why that table is talking about hidden fees.


 
Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
United Kingdom
Local time: 17:15
Member (2013)
German to English
TOPIC STARTER
Thanks... Jun 11, 2014

Richard Foulkes wrote:

I've used my account with HSBC for years. No transfer fees. Haven't shopped around to compare recently but I've just looked at a recent transfer advice note from 1 April and the exchange rate applied was 1.2364. Hope that helps.


Natwest's rate today is 1.1821, which is a little more favourable, but I guess it may have changed quite a bit since April 1.


 
Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 17:15
Member (2009)
Dutch to English
+ ...
fee hidden in (bad) exchange rate chosen by the bank? Jun 11, 2014

Nick Brisland wrote:

Michael Beijer wrote:

Wow, have a look at the table on this page with fees charged by UK banks when you send £1,000 to a Euro account (I do it the other way around, but assume that the results will be comparable):

https://transferwise.com/blog/2014-06/sir-richard-branson-joins-our-mission-to-stamp-out-hidden-fees/?utm_source=TransferWise%20DB%20Part%202%20(to%20June%209,%202014)&utm_campaign=0a3004b7f4-_theysayyoupay6_10_2014&utm_medium=email&utm_term=0_ff9a4a44dd-0a3004b7f4-99890297

“Exposed – the hidden cost of money transfers

Banks hide huge fees in unfair exchange rates. Here’s what it REALLY costs to send £1,000 to a Euro account.

HSBC: They say £4 - You pay: £34.09 (incl. hidden fee) ... actual fee = 3.4%
LLoyds Bank: They say £10 - You pay: £34.72 (incl. hidden fee) ... actual fee = 3.5%
NatWest: They say £10 - You pay: £50.66 (incl. hidden fee) ... actual fee = 5.1%
RBS: They say £10 - You pay: £50.58 (incl. hidden fee) ... actual fee = 5.1%
Santander: They say £25 - You pay: £54.01 (incl. hidden fee) ... actual fee = 5.4%
Post Office: They say FREE - You pay: £38.05 (incl. hidden fee) ... actual fee = 3.8%
Western Union: They say £10 - You pay: £43.61 (incl. hidden fee) ... actual fee = 4.4%

TransferWise: They say £5 - You pay: £5 (incl. hidden fee) ... actual fee = 0.5%


Comparison table shows costs of sending 1000 GBP to EUR, from UK to Germany online. Telephone research was carried out by independent research company. Charterhouse Research Ltd. from 6-9 June 2014.”


Although this is from an advert from a company called TransferWise, so it too may be misleading, I have a feeling their figures are more or less correct.

I'm not sure how the firm I use to do transfers (Smart Currency Exchange) compares to TransferWise, but I am going to call them and find out.

Michael




[Edited at 2014-06-11 15:34 GMT]

[Edited at 2014-06-11 15:35 GMT]

As it is advertising for their company, I'd be a bit sceptical. Their fee for Natwest is definitely wrong (it's £7) and HSBC and Santander are free. Oddly enough, there are times when I've compared money I've actually received in my account with what Natwest's currency calculator says I should receive, and the amount paid in to my account has actually been higher! So I don't know why that table is talking about hidden fees.


Hi Nick,

I have a feeling the fee is the X-rate chosen by the banks, but I'm not sure. I know that this is one of PayPal's tricks. I just sent an email to Smart Currency Exchange, asking them for their take on the matter.

Michael


 
Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 17:15
Member (2009)
Dutch to English
+ ...
Reply from Smart Currency Exchange on € > £ transfer fees: Jun 11, 2014

Hi Nick,

OK, so here is what a trader at Smart Currency Exchange answered in reply to my request for info:

MY QUESTION:
Hello,

I am a happy Smart Currency Exchange customer (I transfer a few thousand euros to my HSBC account from Spain every month) and was wondering if you had any info on how your service stacks up against a firm called TransferWise.

There has been a lot of talk about hidden bank fees when sending e... See more
Hi Nick,

OK, so here is what a trader at Smart Currency Exchange answered in reply to my request for info:

MY QUESTION:
Hello,

I am a happy Smart Currency Exchange customer (I transfer a few thousand euros to my HSBC account from Spain every month) and was wondering if you had any info on how your service stacks up against a firm called TransferWise.

There has been a lot of talk about hidden bank fees when sending euros (and other currencies) to sterling accounts lately on the Proz.com translator portal. For example, have a look at this recent thread:

http://www.proz.com/forum/translation_in_the_uk/270529-best_bank_for_receiving_euros.html#2308496

It would be great if you could outline your fee structure and how it compares to the banks so I could mention it in the forum.

Michael

ANSWER FROM SMART CURRENCY EXCHANGE:

Email 1:
Hello Michael,

Thank you for your e-mail.

I have had a look at the article in the link below regarding bank and post office fees and hidden charges and believe it is slightly misleading. The quoted charges are actually their only fees for sending money overseas, the hidden charges are purely in the rate of exchange that they can offer. The market rate that you see on google or on the BBC is the market or interbank rate of exchange; this is the rate at which banks trade their millions between one another. The rates of exchange that the bank will offer their private clients and the rates that companies will offer will always be margin below this market rate.

Taking HSBC as an example based on €1,000:
Market rate at the moment @ 1.24 buying £806.45. (This is the rate that one would achieve if they were exchanging millions)
HSBC rate @ 1.1904 buying £840.0
HSBC charge of £4
= £836.00

The hidden charges are therefore the rate of exchange that they offer. The research has been done by a company that has called to get quotations from all of the different entities; unless the transactions have actually been made the rates may not actually be accurate. The rates of exchange will also vary depending on the different bank accounts that clients have with the different high street banks, the different relationships with bank managers and number of different factors.

We have never charged you to make transfer through us, we make our money purely in the rate of exchange. The margin that we transfer your Euros into pounds is a little over 1% from the interbank rate, this covers our cost of transfer and a small profit for the company. Transferwise can offer closer to 0.5% from the market rate but do not guarantee the rate of exchange on booking. If you look at the quotation page, they do warn you that they cannot allow for rate movements but will wait for a better rate if the market moves more than 3%. This could therefore represent up to a 3% margin on the transfer. This is because they are a peer to peer service and match your transaction up with another client, if the rate moves in this time delay the margin can increase. We will buy the Euros at your instruction and therefore guaranteeing the rate of exchange.

Transferwise is also purely an internet based service; we provide ourselves on a much more personal touch, agree deals over the phone and can help our clients with the timing of when to book in transactions as the market is constantly moving.

I do hope this explains the pricing structure within the industry; we will always be transparent on our costs and will always quote our best rate first time around so you can make a direct comparison.
Best regards,
Paul Whittington | Trader

Email 2:

Hello Michael,

Apologies – my maths was slightly wrong there.

HSBC rate there would be 1.2896 and therefore buying £775.43. (Obviously less pounds achieved than the market rate).

Many thanks.

Best regards,
Paul Whittington | Trader


Although I might try out TransferWise, or another of the new peer-to-peer transfer companies, I think I’ll stick with Smart Currency Exchange for the time being.

Michael
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Hilary Bruce
Hilary Bruce  Identity Verified
United Kingdom
Local time: 17:15
Italian to English
+ ...
Thank you Michael Jun 12, 2014

Thank you for the information you provided, most informative. I used to use Moneycorp but have realised they were not giving me the best deal. Smart Currency Exchange have been most helpful so far with my enquiry for a transfer from EUR to GBP, so I think for now I will be dealing with them for larger amounts and Transferwise for smaller sums.

 
saraariff1 (X)
saraariff1 (X)
Spain
Local time: 18:15
Euro/Sterling exchange rate Jun 12, 2014

Michael, thank you very much for the information. It's really helpful and I might give Smart Currency Exchange a call.

@Nick, I've only recently moved back to the UK after living in Spain and am still working for companies out there. I bank with Santander and the exchange rate I've received between 13 May and 10 June this year has varied from 0.7917 = £1 down to 0.7858 = £1 more recently.

Hope that helps.

Sara.


 
Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 17:15
Member (2009)
Dutch to English
+ ...
@saraariff1 + Hilary: Jun 12, 2014

You’re welcome!

Any reviews or comments on Transferwise (or similar peer-2-peer services) would be very welcome as I am always on the lookout for cheaper options!

Michael


 
cranium
cranium
French to English
+ ...
"Title" menu Jun 13, 2014

From Smart Currency Exchange:

Dr
Lady
Lord
Miss
Mr
Mrs
Ms
Other
Professor
Sir

I was pondering the sociological meaning of this list until I realized it was in alphabetical order.

Back on topic, thanks for the tip, I may be needing a service of this kind soon (contemplating moving).


 
Tom in London
Tom in London
United Kingdom
Local time: 17:15
Member (2008)
Italian to English
FIrstDirect (HSBC) Jun 13, 2014

Nick Brisland wrote:

Richard Foulkes wrote:

I've used my account with HSBC for years. No transfer fees. Haven't shopped around to compare recently but I've just looked at a recent transfer advice note from 1 April and the exchange rate applied was 1.2364. Hope that helps.


Natwest's rate today is 1.1821, which is a little more favourable, but I guess it may have changed quite a bit since April 1.


1.2576 recently via FirstDirect, receiving an inward payment from Italy. No added fees. I left Natwest because they charge for every transaction. FirstDirect don't. Plus I had other issues with Natwest (dishonesty). I'm happy enough with FirstDirect.

[Edited at 2014-06-13 12:12 GMT]


 
Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
United Kingdom
Local time: 17:15
Member (2013)
German to English
TOPIC STARTER
... Jun 13, 2014

saraariff1 wrote:

Michael, thank you very much for the information. It's really helpful and I might give Smart Currency Exchange a call.

@Nick, I've only recently moved back to the UK after living in Spain and am still working for companies out there. I bank with Santander and the exchange rate I've received between 13 May and 10 June this year has varied from 0.7917 = £1 down to 0.7858 = £1 more recently.

Hope that helps.

Sara.


Interesting - Natwest's rate for (almost) the same time period was 0.7997 on 8th May and 0.7920 on 6th June. By my calculations, there is little difference, once Natwest's £7 fee has been deducted. I guess that just goes to show that Santander are still 'charging' you, even if they don't call it that.


 
Nick Brisland, BA (Hons)
Nick Brisland, BA (Hons)
United Kingdom
Local time: 17:15
Member (2013)
German to English
TOPIC STARTER
Natwest's rate today ... Jun 13, 2014

Tom in London wrote:

Nick Brisland wrote:

Richard Foulkes wrote:

I've used my account with HSBC for years. No transfer fees. Haven't shopped around to compare recently but I've just looked at a recent transfer advice note from 1 April and the exchange rate applied was 1.2364. Hope that helps.


Natwest's rate today is 1.1821, which is a little more favourable, but I guess it may have changed quite a bit since April 1.


1.2576 recently via FirstDirect, receiving an inward payment from Italy. No added fees. I left Natwest because they charge for every transaction. FirstDirect don't. Plus I had other issues with Natwest (dishonesty). I'm happy enough with FirstDirect.

[Edited at 2014-06-13 12:12 GMT]


... is 1.1877. Which makes Natwest a little more favourable; assuming you're receiving €1000, Natwest would give you £841.96 (-£7 = 834.96), and First Direct would give you £795.17. I might just stick with Natwest.


 
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Best bank for receiving Euros






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