It hardly seems fair, does it? You spend months organising and preparing your emigration to Australia only to find that just before the move your bank takes a huge chunk out of your savings when transferring money to your new Australian bank account.
When it comes to moving your savings, banks invariably provide poor exchange rates, why? Because they can! They hold your money and know you’re probably too busy or stressed to shop around for a better deal. Coupled with their high transaction fees, you can loose up to an extra 4% on your savings when transferring via your bank.
Ensuring you get the right advice about transferring your money Down Under is key
Mark McElney, Managing Director of No1 Currency warned, “Moving to a new country can be a bit of an emotional roller coaster and what a lot of people tend to forget is that they don’t have to rely on their bank to move their money for them.”
“To maximise your transfer it is vital to shop around to find the best rate of exchange.” Mark continued, “If you are transferring a large sum of money then your best bet is to seek free advice from a specialist currency broker from the outset.”
Recent market tensions have seen a weakening in sterling against the Australian dollar. This type of adverse currency movement would also have a huge negative effect on the value of your savings.
For example, a couple planning emigration to Australia last year needed to exchange £150,000 to Australian dollars. At the beginning of the process in August, their savings would have secured around A$382,500. By the time they were ready to make the move in May of this year, the fall in the value of the pound had seen the equivalent value fall to A$307,500. This equated to a loss of A$75,000 or, in sterling terms, £36,585.
This type of exchange loss could have been avoided by contacting a currency broker from the outset, because not only can a currency specialist offer competitive exchange rates without the hefty transactions fees, they can also offer other services such as fixing your exchange rate up to 24 months in advance with a Forward Contract.
David Lamb of No1 Currency explains, “A forward contract is an agreement that enables you to lock into a favourable exchange rate for up to two years before you need to transfer your savings. Essentially, this means you are able to buy your currency now and pay for it up to 24 months later, thereby protecting your savings from any negative currency movements.”
Forward contracts provide an ideal solution for anyone who is planning on moving abroad. Often, transfers of savings and assets are left until the last minute. In some cases, transferring of funds can take far longer than anticipated, especially if money is tied up in a UK property which is proving difficult to sell.
By contacting your Foreign Currency Specialist straight away these exchange rates can be fixed at a predetermined rate. Thereby, not only allowing you to lock into favourable rates but giving you the added security of knowing exactly how much you will have when you start your new life abroad.
With your savings protected from the uncertainties of the foreign exchange market, you can relax and take your time in planning the rest of your emigration to paradise.
Visit No1 Currency for more information
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