Savings - moving to OZ next year

lynnd_2

Hi there,
I'm after some advice on moving some of my UK savings over to $AU.
I'm currently living in the UK but planning to emigrate Sept 2010. I'd like to start moving my savings over from now until then, but obviously maximising the interest I earn and minimising the conversion costs. Does anyone have any experience of this? I've got about £20k I can move over now, then I'd want to keep moving about £1k every couple of months or so.

Thanks in advance,
lynnd

Mr_Matey

Hi lynnd,
I'm an Aussie living in the UK so have a little bit of experience with this.

What I think you need to do is set up an account in Australia, maybe your bank can do this for you if they're international, then transfer your money when you see fit.

In my experience currency brokers can be a good way of saving on transaction costs and getting good rates when you have regular payments or large one-offs. But you need an Aussie account to transfer into.

Also if you want to reduce currency risk instead of moving £20k upfront you could transfer £2k per month.

Where in Aus are you moving to out of interest?

Cheers,
Mr Matey

mrposhman

Yep currency brokers are the way to go.

I use HiFx and will need to be looking at the same thing as you. I'm hoping to emigrate in July so a little earlier then you. I'm going to melbourne, where are you off to?

I would keep an eye on the exchange rate. I'm not sure where its heading but maybe someone with a bit more experience of exchange rate trading would be a good bet to ask.

LEO5_AUD

Hi Lynnd,

I have been through the whole emigration thing and yes these guys are right, you need a bank account first. I used Westpac they did everything online a current account and a high interest savings account. Once you have these you can go ahead and transfer money at will, i have used Hifx and Ozforex both good companies, Ozforex also has a sister company Tranzfers that deals with smaller transactions.

As for moving money now i would hold onto your cash as the exchange rate is quite poor at the minute, about $2.1 to the £, i usually try and wait until it gets closer to $2.5 to the £ before i move money. With the UK pound so poor in the money markets at the moment and considering the time you have i would get your money into a (so called) high interest account here and wait out the storm. With these campanies you can setup alerts so you know when the market is on the change, you can even do forward trades that will take effect when the markets hits your required level. With the Aus interest rates not that high i would make you money on the exchange rate: For instance £20,000 @ 2.10 is $42,000 and £20,000 @ 2.4 is $48,000 that's $6000 or £2500 much more than any interest payments over the next year! Play the money market its much more fun!!! Hope this helps Leo

Generali

I worked for a few years in FX and don't try to play the markets as you'll get it wrong. Highly paid professionals do all the time so you have no chance.

The plan to drip feed the money across is perfect. I spent 13 years working in finance and I know a bit about this stuff.

LEO5_AUD

What are you talking about Generali!! Sending money over in one lump sum or drip feeding has the same effect if you have got a poor rate. I was trying to encourage Lynnd to play the only hand he has here and that is time! I have exchanged money for many years and if you have time you will always get a better deal. Why on earth would you send any money over in this current situation?

Leo