Transfering 6000 euros from Germany to the Uk...

mccristo

Hi moneysaving folk I wonder if I could pick your brains.

My wife has recently come into some funds from her parents in Germany, I know the exchange rate seems quite good for Euro --> Pounds so thought it might be an ideal time to transfer the cash.

What is the cheapest way to transfer it over? We're having a loft conversion in a few months and this money would really help us, how long it takes to get into her account isn't really a factor mind.

Many thanks.

JamesU

mccristo wrote: »

Hi moneysaving folk I wonder if I could pick your brains.

My wife has recently come into some funds from her parents in Germany, I know the exchange rate seems quite good for Euro --> Pounds so thought it might be an ideal time to transfer the cash. What is the cheapest way to transfer it over? We're having a loft conversion in a few months and this money would really help us, how long it takes to get into her account isn't really a factor mind. Many thanks.

One option to consider, admittedly more geared to regular currency transfers and exchanges (Eur/£ and £/Eur) between UK and Germany rather than a single transaction, is using Barclays-Deutsche Bank. This facility may also be generally useful if your wife is German but in UK.

Open a Barclays Euro account here (current account, no charges), transfer Euros over from Germany, exchange Eur to £sterling in the UK when happy with the exchange rate. Deutsche Bank in Germany provide easy and cost-effective transfer of Euros to Barclays Euro account (may be a very minimal charge, if any, varies depending on banking arrangements in place at DB). £10K daily cap on transfer amounts to UK (6K Euros can be done in a single transaction). If parents have no DB account, check with other German bank where account is held.

General from a previous posting: At Barclays straightforward to hold balances in both Euro and Sterling accounts, transactional costs on the exchange between currencies in the accounts are competitive relative to other high street banks, and the whole process is easy to do any working day over the phone using a dedicated number. Very importantly, the exact rate of exchange is specified on the phone there and then, a serious consideration with larger currency transactions. Some banks e.g. Lloyds provide a similar facility but the exchange rate you get on the day can be less well-defined and you can loose out a lot on transaction during the currency exchange due to their "minor fluctuations" during the day when the cash is switched, and this always work to the bank’s advantage. Others may recommend alternative UK banks on the transactional side, just be sure you choose one that accurately defines the exchange rate.

Link here (various posts in thread) for other options: https://forums.moneysavingexpert.com/discussion/2443397


JamesU

mccristo

Thanks for your reply James.

I feel a bit naive at the moment, how will this money fair with the "buy rates" and real exchange rate?

At the moment the exchange rate is 1.16~ euros for £1. But the best "buy" rates I can find are around the 1.30 mark, thats quite a large chunk gone and because of that we're wondering if it would be better to leave the money in the Barclays Euro account and use it for holiday money and things?

Thanks for your help!

JamesU

mccristo wrote: »

At the moment the exchange rate is 1.16~ euros for £1. But the best "buy" rates I can find are around the 1.30 mark, thats quite a large chunk gone and because of that we're wondering if it would be better to leave the money in the Barclays Euro account and use it for holiday money and things?

The figures suggest approx 11% for a transaction which is way off mark. Maybe you are using various sourced tourist rates etc, no idea, but not important. I checked this quickly in the morning:

Step 1: Online exchange rates Euro-Sterling, 9:30, 8th June

Bloomberg: £1 = 1.2123 Eur
BBC UK market data: £1 = 1.2122 Eur
Yahoo finance (Germany): £1 = 1.2127 Eur

Step 2: Phone quote from Barclays (sums less than 25,000 Euros)

Eur - £: 1.2450

Hence: (1.2450-1.2123)/1.2123 = 2.7%

So the exchange at that point in time costs 2.7% (inclusive of all charging). This is more realistic, but around 2.0% is more usual. Could be related to weaking of the Euro over the last few days with wider spreads at present, no idea.

Usually best to follow the exchange rate, and when it is in the range you want, phone and get a quote, accept or decline. Difference between 2% and 2.7% transaction cost is approx 40 Euros/£33 for 6K Euro exchange so not overly excessive, but important to consider with larger transactions. Daily and within day fluctuations more important. BBC markets at 12:30: exchange rate now 1.209, so 0.3% difference since 9:30. Intaday range today so far: 1.205 - 1.218. Link here:

http://news.bbc.co.uk/news/business/market_data/currency/11/13/intraday.stm

If you can get a better deal elsewhere obviously go for it, but if you want a working Euro bank account in the UK for personal use this is a good one to go for.

Personal choice and decision on how you hold your currency and when you exchange it. Late last year the Euro was relatively strong against sterling, great transactions to sterling, but has since weakened approx 10-15% against sterling which is substantial. But has to be balanced against any personal need for sterling right now and also the fact that the Euro may weaken further against sterling due to Sovereign debt concerns in Europe.


JamesU

dzug1

1.3 might be what you would get if you walked into a High Street shop with euros cash in your hand - even then it sounds a bit much.