International Money Transfer

James_Dunbar

I am currently serving in the British Army and stationed in Germany. I have the option of having my salary paid into a German account. I have been informed that if i transfer an amount from my german bank to my english bank i will make money via the exchange rate every month for example:

If i transfered the equivalent of £2000 from my german account i will make around £150.00.

Can anyone please advise me if this is illegal or is it perfectly safe

EnglishRose001

There isn't a price to be made.

I live in Germany also and would just set your JPA to whatever you need in your Sparkasse. Is it really worth ruining your relationship with your British bank for 150 squids?

James_Dunbar

English Rose what do you mean it shouldnt upset the bank as it is just the difference between the exchange rates Euros to pounds. I am an HR Administrator and know about the banking.

EnglishRose001

Fair one then, if you're trying to make a profit go for it

helliecopter1

Hi James

I've being to trying to post you a reply, but have being having a few log-on problems. I got a new user name and will start again!

We currently get all my hubby pay paid into our German account. We have left a £1 transfer to our 2 bank accounts in the UK. Have been told this is easier than re-regsitering them when you're posted back to UK.

The way we work it is that we withdraw the €s we want back in the UK, from our german account and pay it into an Abbey branch run by the Forces Financial. Our Abbey account has internet banking so we use it as a 'mule' account to move from € to £.

You're right in thinking that you make on the exchange rate as the FFR is currently 1.31 and the Abbey pay in rate is 1.293. But it's not as much as you think if you do it the way I do.

£100 paid in euros is €131 into germany account. This then converts to £101.31 back into the Abbey account. As you can see it won't make you rich and you have to make sure you've enough money to cover bills / direct debits just in case there's a problem with the pay or banking system.

We move at least €1800 a month and I think it's worth the effort. We make about £18 a month and it's perfectly legal. It's your money and you can do what you want with it. I can't understand why English Rose thinks it will ruin your relationship with the english bank.....? We still bank in the UK, but we choose to have the money pay to us in germany first and then transfer it across.

The other benefit is that we get paid on 25th normally in Germany. This means I get plenty of time to move the money from my Abbey account to my other bank before the last day of the month.

Having a UK based account which you can access in Germany saves the hassle of using the IBAN system which can be very expensive if you're moving large amounts of money regularly.

I know I've waffled on a bit and just hope it makes sense.
PM if you need any further advice.