Which one of Savvy’s money transfer partners will charge the lowest fees for your transfer will depend on several factors.
To find the lowest fees for your particular transfer you should compare companies that offer different fee charge methods. In general terms, those who charge a flat fee may be the cheapest for larger transfers, whilst those who charge a percentage of the transfer amount may be your lowest-fee option for smaller transfers.
Other factors affecting the price of an international transfer include:
The amount transferred and its destination
The amount you wish to transfer can affect the fees charged, as some money transfer services have a limit on the amount of foreign money available for less-often exchanged currencies. This means they may charge higher fees for these less common currencies and lower fees for the most popular ones. The most popular destinations include sending money from Australia to India, the UK, the USA, New Zealand and China.
For example, compare the cost of sending AUD $1,000 to some of these high-traffic countries, compared to less well-used destinations. Specialist transfer provider Wise charges the following (as of July 2022):
Fees to send AUD $1,000 to high-traffic destinations:
- To the UK: $5.14
- To New Zealand: $5.37
- To India: $6.15
Fees to send AUD $1,000 to lower-traffic destinations:
- To Argentina: $18.21
- To Botswana: $17.45
- To Costa Rica: $19.65
Legal compliance
In addition, all cash transfers over $10,000 leaving Australia have to be reported to AUSTRAC, which is the Australian Government’s anti-money-laundering agency. AUSTRAC compliance can also add to the cost of the transfer in some cases if you wish to move more than $10,000 overseas, as some companies will charge more for the administration to fill in compliance forms.
The method of payment
In addition to your transfer provider charging fees to make the transfer, you may also be charged fees if you decide to use your credit card to pay for the transfer. For example, some credit cards charge a fee of up to 5% of the transaction value for international transactions. For this reason, it’s cheaper to pay for your transfer either in cash, using a direct debit from your bank account or by using EFTPOS with your debit card if you wish to avoid additional credit card fees.
The speed of delivery
The cheapest method to send money overseas will not necessarily be the fastest international transfer. Generally, you’ll have to pay more if you wish to make an instant transfer, a cash transfer or an overseas cash delivery (a service offered by a limited number of international money transfer providers). Some providers also offer an express service, which means you’ll pay a fee to guarantee same-day delivery.
