Most cost effective money transfer?

DemiDee

Hi all
I run a not for profit and we are raising money to build an orphanage in Kenya. We have been using Western Union to give small amounts, which has worked well. However, I was wonderful if anyone here had experience of transferring large sums abroad, and if so, what is the best, safest and most cost effective method? Bank transfer from our account with HSBC would be too expensive.

DemiDee

I run a not for profit and we are raising money to build an orphanage in Kenya. We have been using Western Union to give small amounts, which has worked well. However, I was wonderful if anyone here had experience of transferring large sums abroad, and if so, what is the best, safest and most cost effective method? Bank transfer from our account with HSBC would be too expensive and Western Union has worked OK but for a large sum such as £15,000, we'd do well to ensure it's more secure and accountable, but do not want too much eaten up in charges. Any advice most appreciated.

Savvy_Sue

While we wait for someone with experience, I'll just say that large sums are going to be expensive, at least partly because of all the anti-fraud and money-laundering controls needed.

DemiDee

Many thanks, Sue. So far, we have been giving small sums through Western Union, up to £300. These have only attracted between £6-£12 in charges.

seismicryan

Why is wire transfer too expensive? should only cost about £25 for the transfer...

Jean_III

Have you had a look at this guide on Money Saving Expert.com main site?

http://www.moneysavingexpert.com/banking/foreign-currency-exchange

I hope this helps.

DemiDee

Seismicryan, I think it will be more for such a large amount, but in the process of checking it out. We're a long way off our target yet, so it's not urgent, but I like to be prepared.

Jean, the link above is really useful, thank you.

Does anyone have any experience of sending money via American Express? I have heard that it's just £10 to send any amount, but that sounds a little too good to be true? That would also mean transferring the money to Amex and then again overseas.

Savvy_Sue

DemiDee, I've merged your two threads and parked them here, where I think there is more expertise.

martindow

DemiDee wrote: »

Seismicryan, I think it will be more for such a large amount, but in the process of checking it out. We're a long way off our target yet, so it's not urgent, but I like to be prepared.

Jean, the link above is really useful, thank you.

Does anyone have any experience of sending money via American Express? I have heard that it's just £10 to send any amount, but that sounds a little too good to be true? That would also mean transferring the money to Amex and then again overseas.

I use Amex - they also claim to offer good exchange rates and it is a £10 fee. Not sure if there is an upper limit - I usually transfer £3k or so at a time.

It was a long and involved hassle setting it up - I almost gave up.

I don't think it is a good idea to use WU for transfers as the money is picked up as cash. You really need it to go into a bank account so there is a proper paper trail. WU is not cheap either. If you are a charity I imagine you need to demonstrate that the money is being used as intended and unnecessary expenses are avoided.

DemiDee

Martin,
Thank you for your invaluable input. I remember getting the lengthy forms through from Amex and giving up before having filled them all in, so I can quite understand and appreciate how tedious the setting up process was. However, a £10 fee on £3000 is very favourable and would make this process worthwhile. I believe that Amex charge £10 regardless of how much you want to transfer, so this could well be the best option for us. Can I just ask, Martin, in using the Amex transfer service, presumably you have to first transfer the money from whatever bank account into an Amex account, yes? And then the transfer is done from the Amex account? Or can Amex somehow do the transfer from bank accounts held with other banks? I am just thinking ahead. We don't have a fraction of the money just yet.

martindow

DemiDee wrote: »

Can I just ask, Martin, in using the Amex transfer service, presumably you have to first transfer the money from whatever bank account into an Amex account, yes? And then the transfer is done from the Amex account? Or can Amex somehow do the transfer from bank accounts held with other banks? I am just thinking ahead. We don't have a fraction of the money just yet.

There is a Direct Debit arrangement set up from an account that you designate. When you want to pay money you log on to an Amex site put in the details of your payment, destination account etc. It then gives you the exchange rate and if you agree and confirm it the money comes out of your designated account after a few days and into the foreign account.

The site is well set up so when you log in it remembers details of previous payees.

After the hassle of setting it up it works well. How good their rates are I don't know but it tells you the exchange rate before you commit. My bank charged 25 pounds and I only knew the exchange rate afterwards when it appeared in my bank account.