Question about Transferwise - Sending money to UK.

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Mar 30th, 2018 8:08 pm

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Mar 28th, 2018 6:10 am

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 6:10 am

Question about Transferwise - Sending money to UK.

Appreciate if anyone who knows can Chime in.
I want to send small gift amounts to family friends in the UK (xmas/easter/birthdays/etc)

I opened a transferwise acct and in process of using my BMO account to fund it via bill payment.

What is the best way now to send the money to friends in UK if I already have their banking info (SWIFT/etc).?

Should i activate a GBP account and convert CAD in my Borderless acct to GBP first and then do a transfer?
OR
should i just do a normal CAD to GBP conversion and pay via Borderless account?

Thanks in advance.

16 replies

Mar 28th, 2018 8:00 am

horacio: Newbie; Nov 28, 2006; 25 posts; 36 upvotes

Mar 28th, 2018 8:00 am

Just transfer without going through the borderless account. You would pay a little bit more if you deposit to the bordeless account and then do the transfer.
Just initiate a transfer sending the money to their bank account (you only need each IBAN) and then send the money from BMO.
Works perfect.

+1

Mar 28th, 2018 12:09 pm

DebitsOnTheLeft: Newbie; Apr 23, 2014; 59 posts; 14 upvotes; North Vancouver, BC

Mar 28th, 2018 12:09 pm

I've found the borderless account to be of limited use. As Horacio says, just make the transfer direct from your CAD balance.

You'll need their sort code and bank number, not the IBAN or SWIFT. This comes in the format of a 6-digit sort code (XX-XX-XX) and an 8-digit account number, should be printed on the front of their debit card. Once you initiate it from TransferWise, should be in their account in under a day.

+1

Mar 28th, 2018 12:53 pm

bubak: Deal Addict; Jul 15, 2009; 2988 posts; 2263 upvotes

Mar 28th, 2018 12:53 pm

Depends on the amount.

Direct transfer has a minimum fee of $3, so best for transfers over $355 at a time. It's also simpler than going through the borderless account. Don't fund the borderless account if going this route.

The borderless account adds an extra fee of 50p per transfer. It's better for payments of significantly less than $355 at a time.

+1

Mar 28th, 2018 4:25 pm

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 4:25 pm

horacio wrote: ↑Just transfer without going through the borderless account. You would pay a little bit more if you deposit to the bordeless account and then do the transfer.
Just initiate a transfer sending the money to their bank account (you only need each IBAN) and then send the money from BMO.
Works perfect.

Thanks. When you say send money from BMO account, you mean via bill payment? Or by linking my debit acct

Mar 28th, 2018 4:25 pm

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 4:25 pm

bubak wrote: ↑Depends on the amount.

Direct transfer has a minimum fee of $3, so best for transfers over $355 at a time. It's also simpler than going through the borderless account. Don't fund the borderless account if going this route.

The borderless account adds an extra fee of 50p per transfer. It's better for payments of significantly less than $355 at a time.

Yah mine is significantly less than 355$. Lol

Mar 28th, 2018 4:29 pm

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 4:29 pm

DebitsOnTheLeft wrote: ↑I've found the borderless account to be of limited use. As Horacio says, just make the transfer direct from your CAD balance.

Thanks you. CAD balance as in what shows under my "balances" in transfer wise? I tried to deposit $1 via BMO bill payment on friday. Today is Wednesday and Still hasn't shown up.

Mar 28th, 2018 5:10 pm

horacio: Newbie; Nov 28, 2006; 25 posts; 36 upvotes

Mar 28th, 2018 5:10 pm

samson wrote: ↑ Thanks you. CAD balance as in what shows under my "balances" in transfer wise? I tried to deposit $1 via BMO bill payment on friday. Today is Wednesday and Still hasn't shown up.

And it is not going to show up.. I learned that the hard way. (Don't worry, the will reimburse the dollar)
You have to INITIATE a borderless deposit or a transfer first. Then go to your bank and send the amount in Canadian dollars they way you prefer. I use bill payment because my bank allows it and it is one of the cheapest options.
So when they get the money (1 day or 2) that they were expecting, it is done.

+1

Mar 28th, 2018 9:22 pm

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 9:22 pm

horacio wrote: ↑ And it is not going to show up.. I learned that the hard way. (Don't worry, the will reimburse the dollar)
You have to INITIATE a borderless deposit or a transfer first. Then go to your bank and send the amount in Canadian dollars they way you prefer. I use bill payment because my bank allows it and it is one of the cheapest options.
So when they get the money (1 day or 2) that they were expecting, it is done.

OMG I totally misunderstood. Thanks for taking time to write. Please bear with me.

So say I want to send 25 GBP as a gift

Scenario 1
Send Direct to Friend in GBP
Send MOney -> How much would you like to Transfer ? 49 CAD --> Recipient ? Friend --> $49 CAD - $3 CAD fees will be convered to 25.30 GBP.
Then I go to BMO online and bill pay to Transferwise 49$ CAD?

Scenario 2
Open a GBP borderless account and send money to myself
Send MOney -> How much would you like to Transfer ? 49 CAD --> Recipient ? Myself --> $49 CAD - 0.41 CAD fees will be convered to 26.74 GBP.
Then I go to BMO online and bill pay to Transferwise 49$ CAD?
Do i have to pay more fees when I send from my GBP borderless account to Friend? on FAQ, they mention and addition 50p? This would be more economical than $3 CAD fee in scenario 1?

Mar 28th, 2018 9:58 pm

bubak: Deal Addict; Jul 15, 2009; 2988 posts; 2263 upvotes

Mar 28th, 2018 9:58 pm

samson wrote: ↑ OMG I totally misunderstood. Thanks for taking time to write. Please bear with me.

So say I want to send 25 GBP as a gift

Scenario 1
Send Direct to Friend in GBP
Send MOney -> How much would you like to Transfer ? 49 CAD --> Recipient ? Friend --> $49 CAD - $3 CAD fees will be convered to 25.30 GBP.
Then I go to BMO online and bill pay to Transferwise 49$ CAD?

Scenario 2
Open a GBP borderless account and send money to myself
Send MOney -> How much would you like to Transfer ? 49 CAD --> Recipient ? Myself --> $49 CAD - 0.41 CAD fees will be convered to 26.74 GBP.
Then I go to BMO online and bill pay to Transferwise 49$ CAD?
Do i have to pay more fees when I send from my GBP borderless account to Friend? on FAQ, they mention and addition 50p? This would be more economical than $3 CAD fee in scenario 1?

Yes, you understand it correctly. Those are the two options. In Scenario 1, there are no additional fees. In Scenario 2, there is an additional 50p fee when you send out to the final recipient, so recipient gets 26.24 GBP. Not a big difference, but Scenario 2 is a bit better. If it was a larger amount (over $300), Scenario 1 would work out a bit better.

The other thing about Scenario 2 is that it gives you more control over the exact amount that you send out. You could send out exactly 25.00, plus the 50p fee, and leave 1.24 sitting in your borderless account to be used the next time you do a transfer.

+1

Mar 28th, 2018 10:41 pm

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 28th, 2018 10:41 pm

Thanks Bubak. I went ahead and did Scenario 2 with a $50 CAD transfer to myself (in GBP)

Mar 29th, 2018 8:35 am

horacio: Newbie; Nov 28, 2006; 25 posts; 36 upvotes

Mar 29th, 2018 8:35 am

No problem Samson... You nailed it.
Now the next good thing to wait from the Transferwise guys is the release of the Master Card debit in Canada.
They are already sending them to client in Europe...

https://techcrunch.com/2018/01/08/transferwise-card/

+1

Mar 30th, 2018 10:42 am

samson [OP]: Deal Addict; Sep 9, 2003; 1980 posts; 413 upvotes; Toronto

Mar 30th, 2018 10:42 am

Thanks Guys...just finished my 1st Transfer.
Looking forward to the MC debit.

Mar 30th, 2018 11:05 am

andrew4321: Deal Addict; Sep 19, 2009; 2200 posts; 952 upvotes; Toronto

Mar 30th, 2018 11:05 am

samson wrote: ↑ Thanks Guys...just finished my 1st Transfer.
Looking forward to the MC debit.

I am looking to do something similar and I would like to use a bank transfer as payment method. What is actually a "bank transfer" in this context? Is it an EFT or a bill payment from the bank? Is it difficult to set it up? Any cost on the bank side? How long does it take? TIA.

Mar 30th, 2018 1:44 pm

bubak: Deal Addict; Jul 15, 2009; 2988 posts; 2263 upvotes

Mar 30th, 2018 1:44 pm

andrew4321 wrote: ↑ I am looking to do something similar and I would like to use a bank transfer as payment method. What is actually a "bank transfer" in this context? Is it an EFT or a bill payment from the bank? Is it difficult to set it up? Any cost on the bank side? How long does it take? TIA.

Bank transfer is a bill payment from Tangerine, Bank of Montreal, National Bank, or Central 1 Credit Union. It's just as easy as any other bill payment, but you need an account at one of those banks. Tangerine has free chequing accounts. You start the transfer on Transferwise, it tells you the amount and account number to pay, and then you just pay it like any other bill.

From banks other than those four, you can do it as a wire transfer, but that's complicated and expensive.

Mar 30th, 2018 1:52 pm

andrew4321: Deal Addict; Sep 19, 2009; 2200 posts; 952 upvotes; Toronto

Mar 30th, 2018 1:52 pm

bubak wrote: ↑ Bank transfer is a bill payment from Tangerine, Bank of Montreal, National Bank, or Central 1 Credit Union. It's just as easy as any other bill payment, but you need an account at one of those banks. Tangerine has free chequing accounts. You start the transfer on Transferwise, it tells you the amount and account number to pay, and then you just pay it like any other bill.

From banks other than those four, you can do it as a wire transfer, but that's complicated and expensive.

Thank you for the detailed answer bubak. Do you know how it works the other way around? Moving GBP to CAD into a Canadian bank? Any additional fees?

Mar 30th, 2018 8:08 pm

bubak: Deal Addict; Jul 15, 2009; 2988 posts; 2263 upvotes

Mar 30th, 2018 8:08 pm

andrew4321 wrote: ↑ Thank you for the detailed answer bubak. Do you know how it works the other way around? Moving GBP to CAD into a Canadian bank? Any additional fees?

I haven't done it from GBP, but I have from EUR. On the sending end, it was just a regular SEPA transfer, which are free in my account. On the receiving end, it was a direct deposit, also free.

In general, I've found that transferring to CAD is easier than transferring from CAD and the fees are a bit lower. At one point in time before Transferwise was a thing, Currencyfair, one of their competitors, supported transferring to CAD but not from CAD.

+1

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