If you’re planning to transfer currency for an overseas investment, you’ll probably
talk to your high-street bank. Don’t! You’ll save money by going to a specialist currency exchange dealer. Send all your international transfers through currency dealers rather than banks. Why? They give you a better exchange rate, lower costs and a speedier service. This is a constant source of annoyance to the banks but they can't compete with dealers. An average high-street bank will probably offer spot rate (the real, interbank, rate of exchange), less 4 per cent. An average currency dealer will offer an ordinary customer spot rate, less 2 per cent. On a £100,000 transfer you save £2,000 on the exchange rate alone. The dealers will be quicker too. In the days before currency dealers became popular, the money would be send by a UK bank to another country via another bank in the local country who would then eventually send it to the end bank. There were three banks involved but, more crucially, there would be a bank in the middle that didn't really care how long it took them to send the money! Check the Charges When it comes to comparing dealers, it is worth remembering that, in addition to exchange rate differences, there are also differences in charges. Currency dealers typically charge less than high-street banks for transferring money abroad. In fact, many of them don't charge anything at all or, more accurately, they incorporate the fees into the exchange rate. One example of this is - two transfers to Turkey done through a well-known high-street bank. The first for £100,000 and the second was for £200,000. The high street bank charged fees of £535 and £1035 respectively. This is a total of £1,570 just in bank charges. A currency dealer would have charged either nothing or a nominal amount such as £20 (i.e. a saving of £1,550). And remember that this is in addition to the exchange rate differences (which probably amount to another couple of thousand pounds). Link to our currency exchange partner page - LINK Inflation soared to 5.2 per cent in September, the highest level for three years, leaving savers with fewer ways to earn a real return on their savings.
Inflation figures released on Tuesday show that the Consumer Prices Index (CPI) -the index used by the government to measure inflation - rose from 4.5 per cent in August to 5.2 per cent in September. According to the Office for National Statistics, this is the highest level since September 2008 when CPI was also 5.2 per cent. It said the biggest upward pressure in inflation came from increases in gas and electricity charges. Over the past few months, consumers have seen a rapid rise in domestic gas and electricity bills, with annual bills rising to £1,345 a year for the average household, double the £740 average five years ago. Figures from Moneyfacts, the independent financial information provider, the latest rise in inflation means there are no regular savings accounts that beat inflation in the current market. To beat inflation, a basic rate taxpayer at 20 per cent needs to find a savings account paying 6.5 per cent, while a higher rate taxpayer at 40 per cent needs to find an account paying at least 8.67 per cent. FOR AN INFLATION BEATING INVESTMENT 12 MONTH INSURED LOAN NOTE - LINK |
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