Transfering pounds into an Euro account in Germany

grubby23

Hi,

I should transfer some pounds back to my Euro account back in Germany.
I think using a bank transfer is just too expensive and might involve a bad exchange
rate. Can somebody recommend me another way how to do that? Maybe getting
a prepaid Mastercard or Visa Electron in Euros, load value in pounds on it and then putting the money into my account when back home? Any other ideas?

many thanks,

markbodega

Grubby you don’t say how much you want to transfer which can make a real difference to the method you choose – but hopefully the following is useful.

As Martin says in his guide to making international payments, when moving money, costs fall into two simple categories: fees and the exchange rate. It’s crucial to check both out.
· Fees. The obvious charge.
A multitude of fees, charges or commission can apply, both for the sender and the recipient. Many providers levy lots of small charges to disguise exactly how much it costs.

· Exchange rates. The hidden charge.
Many companies claim to be ‘commission free’ then load the exchange rate so you get less buck for your pound. Worse still, it’s often teeth-pullingly difficult to get hold of the exact rate and compare it, as some providers simply don’t provide the data.

It also comes down to why you are making the transfer i.e SPEND or SEND.

Spend
If you need money whilst on a trip for example i.e you’ll be spending money and need easy access, there are two main options (either a debit / credit card or as you say a pre-paid card.

The most widely used and recommended debit card is the Nationwide one. Simply set up an account with Nationwide before you go, and you’ll be given access to the Nationwide Debit card. From what I understand, this is the best card possible for spending abroad as the exchange rates offered are really keen and as you don't need a particularly great credit score and, as long as you don't set up an overdraft, it's impossible to go into debt and end up paying interest. They used to offer no fees as well but think this has now changed so check.

Prepaid cards do exactly what they say on the tin; you load cash onto one, and then it can be used in shops and restaurants just like a debit or credit card. While not quite as cheap as the specialist credit or debit cards, the vast majority are accepted by most shops which take the Maestro network (the substantial bulk) both in the UK and abroad.

Their big advantage over cash is if you lose your card, for a fee of around £10 most providers will replace it, with all the funds in tact. Lose a wallet of Euro’s whilst having a drink overlooking the Berlin Wall and it's gone for good.

Prepaid cards have a variety of different charges, but the two top cards keep these to a minimum. They key ones seem to be FairFX, CaxtonFX, the Travelex Cash passport and the Post Office’s pre-paid card.

Send
If you just want to send some money to top up a Euro account in Germany I’d speak to your bank and then compare the exchange rate and charges offered by them to those offered by a currency specialist. The larger ones offer online international money transfers and you’ll save around 4% just on the exchange rate, and avoid all the unnecessary charges and fees the high street banks levy.

Whatever you prefer it pays to shop around.

Best regards

Mark