Which TransferWise experiences we have made and why we recommend the service!

In the past few years, it has happened again and again that we had to transfer money to Thailand. For recipients in EU countries, this is no longer a problem at IBAN times and can be done conveniently via online banking. Although theoretically similar for countries outside the EU, there are often small obstacles that make it difficult or expensive. We recently used Transferwise * for the first time and would like to share our TransferWise experience with you!

What’s different about Transferwise??

The transfer of an exact amount is much easier (fee transfer, target currency), which also results in lower costs than a transfer in the target currency. Why is TransferWise so much better than a normal international transfer?

The system is very simple and somehow revolutionary. The company TransferWise has a bank account in each country, which is used for the respective transfers. We transfer our money in Germany to the German bank account of Transferwise *, which in turn transfers the money from their Thai to the Thai target account. Due to the lack of conversion fees, the company saves money, which it passes on to the customers. Also, the transfer of funds in this way usually faster than with a foreign transfer, especially when transferring the money to Transferwise by credit card.

As a rule, the money has arrived 2-3 days after receipt of money on the German account on the foreign target account. By the way, well-known personalities like one of Skype’s first employees, Taavet Hinrikus, have come up with this idea and, among other things, have joined the company as investor Peter Thiel, founder of PayPal and investor on Facebook.

Unfortunately not all countries are connected to the TransferWise network, so you should inform yourself here in advance. Anyone wishing to transfer amounts over 12,000 euros must also prove the basis of the payment.

We are Victoria, Chris and Liam and want to tell you about our life in Thailand, Germany and the rest of the world.

Why we had to transfer money to Thailand

In our case, it was a matter of two different processes: once we paid for the majority of our car and then we paid a holiday home on Koh Chang in March. In both cases, a transfer from our account in Germany the easiest and safest way, especially the money for the car we did not want to go for a walk in cash

The cost advantage of TransferWise

The first thought was to transfer the money via online banking, which we almost did. However, it is often quite difficult in Thailand to get the necessary BIC and account number. When a friend pointed us to TransferWise, we took a closer look at the company. A decisive factor in a non-EU transfer from a German bank account are the costs incurred, which are composed of two factors:

1. A Transfer fee, which is relatively low and played no major role in our considerations.
2. An individual Exchange rate, the i. d. R. is worse than the official foreign exchange market rate. You do not get the current exchange rate, this applies only to banks, but must be based on the buying and selling rates. These are then hidden fees that make the total transfer costs quite high.

We once compared and came to the conclusion that we could save a lot with TransferWise compared to our normal banks, the exact saving depends on the transfer amount and the conditions at the house bank. Although Transferwise also charges a fee, which at first glance is quite high. But you get the “actual” exchange rate calculated, which leads to lower overall costs. Sounds complicated? A small example:

The savings are estimated by Transferwise and are relatively accurate

Of course, this saving will be greater the higher the transfer amounts are. A relatively accurate assessment of the possible savings offers a TransferWise * directly in the overview, where you enter the desired amount, see screenshot on the right. Another factor that affects the costs of TransferWise is the fact that you would normally like to transfer a certain amount in the target currency. In order to achieve this one must select a transfer in the target currency in a normal online transfer – which usually goes hand in hand with an even worse conversion rate. With TransferWise this makes no difference and you can specify exactly the amount that should be credited to the account of the recipient.

How do you do a transfer now with TransferWise??

The principle of a transfer with Transferwise * is explained quickly, we would like to show you the individual steps.

For registration you only need an email address and the name

You log in conveniently via app or website, all that is needed at this point are the name and an email address. You can also use your Gmail or Facebook account to sign up.

Select transfer amount and currencies
Choose the point “Create a transfer“Or”Send Money“From the navigation top right. A form opens in which you can enter the desired amount and the currencies. You can specify the amount in both the source and in the destination currency, with regard to the fees as described above no disadvantage for you. TransferWise charges will be displayed immediately, the displayed exchange rate may change again, more later.

Find dream accommodation now *

Image already added

We use the Hanse Merkur for 10 years and have always had good experiences. And the price is also great!

Specification of the recipient, also possible without account data!

Then click on “Next” and enter the name of the recipient. Incidentally, the recipients are saved, which makes a new transfer more comfortable. The specification of an e-mail address of the recipient is also appropriate, as this is then informed about the transfer. In addition, you can even make a transfer by email, if you do not have the account information at hand. There are two variants to choose from: by bank account or by email. In the second case, the recipient receives an email asking them to provide their account details for the transfer. In the first case you can enter the account details of the recipient as usual. Practical: there is no special form of data necessary, the local account information such as account number and bank, no BIC, etc. which you have to ask awkward. This is possible because TransferWise transfers the money from an account in the respective country, so in the end it is a national transfer. One less source of error that can result from incorrect entry of account information

In the next step, a subject can still be specified, whereby this does not appear on the account statement of the recipient but only by email to this is sent. A special feature is still there at this point, you can price limit specify for the execution of the contract. The default is 3%, which means that if the rate worsens by more than 3% within the remittance period, the transfer will not be made. This value can still be corrected downwards. This protects you against sudden price drops. The final exchange rate is not fixed until TransferWise converts, depending on the payment method (see 5.), ie one to three days after the order has been made.

There are several ways to transfer the money to Transferwise

In the last step you just have to choose how the money should be transferred to Transferwise. Here are z. Z. four options to choose from: credit card, normal bank transfer, bank transfer by IMMEDIATELY, transfer by iDEAL (the latter we have not tried yet). It should be noted that the transfer may take longer depending on the method of payment, the fastest is the payment by credit card and iDEAL, as TransferWise will then receive the money immediately and can proceed faster with the transfer to the recipient. Similarly fast it goes by IMMEDIATELY, a normal transfer takes the longest.

Our conclusion – We have made these TransferWise experiences!

Anyone who has to make a foreign transfer should not only inform themselves about the fees of the transfer but also about the applied exchange rate. This usually causes you to experience a nasty surprise. Compared to a normal transfer to foreign countries, Paypal or even Western Union, we have got away with using TransferWise each time better and therefore can only recommend it.

If you want to save even more money, you should take a look at our tips on using credit cards abroad.

You plan to buy a scooter or a car in Thailand? Do you already know our tips??

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