setting up your finances abroad - October 14, 2011
Each year around 25,000 UK students embark a course of study abroad. Although this only equates to about 2% of the total UK citizen student population, it is still a significant number of people. Moving to another country can be a stressful experience. When you should be focussing on the exciting things to look forward to and the new experiences you can enjoy you can find yourself worrying about all the things you need to do. Whether you’re moving abroad to undertake your studies for the full duration of your course or studying abroad for a single year as part of a sandwich degree, managing your money is crucial.
You need to be really careful when setting up your finances abroad, especially if you’re not fluent in your new country’s language. Hidden charges and fees can be extortionate, and with them hidden in the small print you might not know about them until it’s too late.
One of the biggest bank charge culprits is the foreign money transfer. Simply sending money from your UK based bank account to a foreign one will often incur a hefty charge. If you bank with Barclays you’re looking at between £25 and £45 plus other hidden charges. Halifax charge a more modest £9.50 for online transfers and £19.50 for telephone banking transfers, but all of this is entirely avoidable.
When you’re setting up your finances it’s important to know all the facts, from what you need to do to the precise exchange rates you’re getting. Exchange rates between different banks may seem barely different, but when you’re changing a lot of money it is that small difference that can lose you money.
You should search around on the internet for companies who won’t charge you for foreign transfers, especially if you’re going to be transferring money on a regular basis which, as a student, is likely.
Check out Currencies Direct, as their helpful offer advice on what to do when setting up your finances abroad, and give competitive rates for your currency exchange. They also have a dedicated section of emigration advice, which is perfect for students who are starting out in a foreign country. They pride themselves on charging nothing but exchange rates for foreign transfers, a refreshing attitude in a world full of hidden bank fees.
Let’s crunch some figures. If your bank was to charge you £40 per monthly transfer you’d pay £480 per year just for sending your money from one country to another. Whilst most banks think this is perfectly acceptable, we think you deserve better. So when you’re setting up your finances abroad, be sure to take your time and choose a company which will look after your finances without charging you extortionate fees.
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