Banks impose increases on overseas money transfer charges

The cost of sending money overseas is soaring as banks impose huge increases in the fixed transfer fees they levy on each transaction, making the charges as high as 40% on small sums, according to leading foreign exchange broker, Caxton FX.

Barclays Bank have just increased the fee for each overseas transfer to £40 from £35 or for its slower service from £20 to £25 and overseas delivery charges apply on top. HSBC charges £17 while Nationwide has recently hiked its charge to £20. Caxton FX does not levy any fees on overseas money transfers under their recently launched Fastpay service where customers can make transfers overseas online for sums over £100.

For bank customers who have to transfer small, regular sums overseas, these bank charges quickly add up to a hefty levy. Owners of overseas properties who have to pay their mortgages and utility bills every month are typically hit hard. Geoff Roger who has recently opened a Fastpay account says, "I pay my Spanish mortgage from the UK every month and my bank charges me a fortune, so Fastpay will be very helpful."

Also hit by high foreign exchange transaction costs are students whose parents usually remit regular sums to them and expatriates who often have to send money home on a regular basis.

Lana Wilson, an American living in London, has to regularly send money to the US. "This new service is something that offers real value to expatriates," she says. "It is quick and simple to use and no transfer fees means it is great value. Banks charge heavy transfer fees for each individual transaction no matter how small or large and the stealth costs can quickly run into hundreds of pounds."

Caxton FX's Managing Director James Hickman says, "This is another example of how CaxtonFX always strives to offer better value and better service to our clients. It is early days but the feedback on this new service has been extremely positive. FastPay offers the best in flexibility and convenience while still offering CaxtonFX's unbeatable rates."