Nationwide - bad exchange rate?

StudentAbroad_2

I set up an account with Nationwide because I needed to receive a few big payments in euros into a UK bank account.

Nationwide's website says that, not only do they not charge for receiving foreign payments, but that the exchange rate is a [edit] commercial rate, set by the Interbank rate.

I received a payment of about 3000 5000 euros two days ago, which Nationwide converted at a rate of 1.253 to about 4000 GBP. The commercial rate that day was actually about 1.20 1.224, and by my calculations I've been left about 150 100 GBP out of pocket.

I'm concerned about this because I'm expecting more euro payments into the bank account. Do I have a right to complain to Nationwide and ask them to reimburse me?

zerog

StudentAbroad wrote: »

I set up an account with Nationwide because I needed to receive a few big payments in euros into a UK bank account.

Nationwide's website says that, not only do they not charge for receiving foreign payments, but that the exchange rate is a commercial rate set by InterBank.

I received a payment of about 3000 euros two days ago, which Nationwide converted at a rate of 1.253 to about 4000 GBP. The commercial rate that day was actually about 1.20, and by my calculations I've been left about 150 GBP out of pocket.

I'm concerned about this because I'm expecting more euro payments into the bank account. Do I have a right to complain to Nationwide and ask them to reimburse me?

The interbank rate on Friday was 1.224 and has been dropping from 1.25 over the last week. Where are you getting 1.20?

If you want to receive euros into a bank account, you should set up a euro account and convert it when you know what the rate will be before pressing go - or use a forex broker.

StudentAbroad_2

zerog wrote: »

The interbank rate on Friday was 1.224 and has been dropping from 1.25 over the last week. Where are you getting 1.20?

If you want to receive euros into a bank account, you should set up a euro account and convert it when you know what the rate will be before pressing go - or use a forex broker.

Thanks for your reply. It appears I was getting the rate of 1.20 from a bad source. Can you let me know where you're getting your figures from?

I'm just disappointed after being told that I could expect a perfect rate. Even at a rate of 1.224, I end up being nearly 100 pounds out of pocket. According to Oanda, the rate hasn't been above 1.229 this week.

grumbler

StudentAbroad wrote: »

Nationwide's website says that, not only do they not charge for receiving foreign payments,

They don't charge, but intermediary banks do charge sometimes (about £12 AFAIK).

but that the exchange rate is a commercial rate set by InterBank.

Where have you got this information? There is no any 'InterBank' that sets the rate. "Interbank rate" is the middle rate on currency exchanges, but I don't think that Nationwide use it for internal currency exchange transactions. They definitely use some internal rate that is worse than the interbank one.

I received a payment of about 3000 euros two days ago, which Nationwide converted at a rate of 1.253 to about 4000 GBP.

The commercial rate that day was actually about 1.20, and by my calculations I've been left about 150 GBP out of pocket.

Your seem to be very lucky as 3000/1.2=2500.
Are all students that bad in maths?

ETA: have a look at http://transferwise.com/send-money-to-the-uk

le_loup

You do know that there is a buying rate and a selling rate? The rates quoted are usually mid-point.

StudentAbroad_2

grumbler wrote: »

They don't charge, but intermediary banks do charge sometimes (about £12 AFAIK).
Where have you got this information? There is no any 'InterBank' that sets the rate. "Interbank rate" is the middle rate on currency exchanges, but I don't think that Nationwide use it for internal currency exchange transactions. They definitely use some internal rate that is worse than the interbank one.
Your seem to be very lucky as 3000/1.2=2500.
Are all students that bad in maths?

ETA: have a look at

The Nationwide website says of receiving overseas payments, 'The exchange rate given to us by our Agent is a commercial rate, which is set in the morning from the InterBank rate (national rate for financial institutions). These rates are fixed rates for the day up to a certain value, depending on the currency being received.'

I'm quoting the rate on my statement i.e. GBP to EUR

grumbler

StudentAbroad wrote: »

...a commercial rate, which is set in the morning from the InterBank rate (national rate for financial institutions).

No way does this mean that the commercial rate is the interbank rate that you can see, say, at http://www.oanda.com/currency/converter/

I'm quoting the rate on my statement i.e. GBP to EUR

i.e. £1=€1.2

€3000=£2500

StudentAbroad_2

grumbler wrote: »

No way does this mean that the commercial rate is the interbank rate that you can see, say, at

Why wouldn't it be? To my mind, 'a commercial rate, which is set in the morning from the InterBank rate' seems transparently to mean just that.

Oh and sorry, yes, I meant 5000 not 3000. Woops.

grumbler

StudentAbroad wrote: »

Why wouldn't it be? To my mind, 'a commercial rate, which is set in the morning from the InterBank rate' seems transparently to mean just that.

I have to disagree. "Set from" means "based on", not "equal to".

callum9999

StudentAbroad wrote: »

Thanks for your reply. It appears I was getting the rate of 1.20 from a bad source. Can you let me know where you're getting your figures from?

I'm just disappointed after being told that I could expect a perfect rate. Even at a rate of 1.224, I end up being nearly 100 pounds out of pocket. According to Oanda, the rate hasn't been above 1.229 this week.

Told by who exactly?

If Nationwide were offering a unique account that charged no fees for international transfers and had a perfect exchange rate would they bury such a uniquely good feature in the small print? Not to mention it would be promoted all over the internet on sites like this.

catokelly

You wont ever get the interbank/spot rate when converting your Euros to Sterling! However if you use an international money transfer specialist, you would get closer to the interbank rate.

Nationwide and other banks/money transfer companies will base their rate on the interbank rate, but you wont ever actually get the interbank rate.