An international money transfer moves money electronically from your account in Australia to an overseas account. Common uses include sending money to your own overseas account, to a family or friend, or to a supplier for a purchase.
Such transfers may incur some fees, and exchange rates may differ per provider, so it’s worthwhile comparing your options before making a transfer.
A significant number of people from the USA reside in Australia – 108,610, in fact! * If you’re eager to send money back to the States, you may need the recipient’s address and account details to complete the transaction.
1,188,040 people who were born in the United Kingdom live in Australia.* Sending money back to the UK is easy, although you’ll have to keep an eye out for an attractive exchange rate between AUD and GBP.
592,310 people living in Australia were born in India.* Transferring money to India is simple enough once you find the right provider. Be mindful, however, that it’s compulsory to provide a PAN (Personal Account Number) when sending any money out from India.1
277,510 Aussies are originally from the Philippines.* Many of them still have family back home, which is why you should ensure any money transfers are good value. This way, the recipients get the most money possible per transaction.
* Source: The Australian Bureau of Statistics (2018)
Typically, you’ll pay a commission to the provider to transfer your money in addition to a fee that may be associated with the transaction. Also, you may owe a margin, which is the cost of converting your currency (although this may vary from provider to provider). If you want to reduce fees and commissions, it’s best to compare your options before you put your money on the line.
Your minimum and maximum transfer amount will differ depending on which international money transfer provider you use. However, your minimum could range from nil to the thousands, while your maximum might be upwards of tens of thousands or into the millions of dollars.
International money transfers can take a few hours or perhaps a few days to arrive at its destination. Several factors can affect the time it takes, however. For instance, if your money has to be transferred through multiple banks across multiple countries, it might take longer than if it’s just hopping across the Tasman to New Zealand. What’s more, some providers are faster at processing transfers than others. Finally, money may take longer to reach its destination depending on if it’s a weekend or public holiday.
It’s simple enough to send money overseas, although you will need the right information about the recipient to make sure the funds end up where they’re supposed to. You will need the recipient’s:
Additionally, you will have to satisfy identification requirements before you can send money. Please take care when providing personal and bank account information.
Your recipient must claim the funds sent through an international money transfer. If they don’t have a bank account, this could prove difficult. Instead, you could opt for a money transfer where you instead send physical cash, rather than electronic funds.
The exchange rate is the value of foreign currency relative to our own (Australian dollars, or AUD). When you make an international money transfer from AUD to another currency, your dollars need to be converted into the foreign currency and calculated at the exchange rate listed by your provider at the time the transaction is performed. Depending on your provider and how much money you plan to send, the exchange rate will differ – not to mention this rate will be wildly different depending on the foreign currency itself.
First and foremost, you’ll have to research when it’s a good time to convert AUD to a foreign currency. Foreign currencies are constantly changing value, which means you should try and convert when the AUD is strongest and the foreign currency is weakest.
So, where can you convert currency? You can switch your money at the following places:
If you plan on sending AUD overseas, you can use our comparison service to see which of our international money transfer providers offer the most attractive exchange rate for your transfer. It’s as simple as that!
It’s likely that more money you decide to send overseas, the better the exchange rate the provider may offer you. As such, you may be best served to send money less frequently. However, make sure any fees, commissions and margins don’t swallow up any cost-benefit of doing so.
Also be mindful that the cost to convert your currency involves a commission to the company, as well as other fees. This could eat into the amount of currency you end up with, which might mean you should try and convert larger sums of money at once.