bank charge for money transfer

Hi marcbernrd, Many thanks and shall be most interested to know BBVA`s responce. I have emailed Santander so shall let you know their reply. I am researching Transferwise as that might fit the bill. nic.

The UK is a member of the Single European Payments Area (SEPA) which is run by the European Payments Council.

I use a Starling Euro Account to make payemnts, having decided to take everything away from Sabbadell except my mortgage so I can control it better. I did have some problems setting the Direct Debits up and they had been working fine until this year. No direct debits from Spain have been processed against my Sterling Euro Account. 

Unsurprisingly I am able to send money to pay bills in Spain via Bank Transfer or Debit Card so they'll still take the money. I haven't sent any money to my Sabbadell acount yet.

Some of this is explained in a Daily Express Article on 14th Jan "Brexit: British expats warned 'passporting is over' as accounts are closed and costs rise" which also staes that the charges made between SEPA countries are against the rules. Basically they are trying to screw the British Banks.

Hi Marcbernard, I have heard from Santander telling me how wonderful their products are but skirting round my main question. I have asked them to adreess my question specifically.

I have partially researched TransferWise and their write-ups are excellent. They supply debit cards and IBAN numbers if required. State pensions can be paid in GBP into ones uk bank and then we ask TW to convert to Euros. They are converted to euros, paid euros into their own spanish account and from there into our spanish banks.

These are seen as internal domestic transfers which do not attract fees.

Also it is possible  for ukGov to pay pensions diect to TW account from which its converted etc, etc.

My ignorance knows no bounds. I assume that the UK Gov`s buying power for currencies is like no other and certainly far more than a currency broker could ever match. were we to have pensions pain into TW and they then convert to euros,is their exchange rate is going to be considerably less than the Gov`s rate. Example, Gov rate €1.15 to gbp and broker €1.10.to gbp.

What we save in paying no banks fee we lose in lower amountt of Euros from TW, or any money broker. I sincerely hope all of that rubbish..make sense.

I would very much welcome polite comments as I may well have this round my neck. nic

nicbax

I have been using Transferwise for about 5  years and have exchanged thousands of pounds

This is their live rate as I write this compared to the commercial rate Example exchanging £1000 to euros

Commercial rate 1.1241

Transferwise rate 1.1241, you would be charged £3.75 for the transfer so the rate would be actually 1.119.88

Rather than pay your pension to TW on a set date you can choose when to send it, and if you are lucky and watch the currency markets  get the best rate possible

Hi Jarvi, many thanks for that. Do you have your state pension paid straight into your TW account or to your uk bank and then to TW.

Presumably I need a multi-currency TW account .Should your pension be paid directly to your TW account, do you need just an account and sort code or an IBAN number.Can you send pension to TW and hold the funds there awaiting a favourable exchange rate or can you only do that with pensi9on funds being in your uk bank. Thanks nic.

Hi Jarvi, many thanks for that. Do you have your state pension paid straight into your TW account or to your uk bank and then to TW.

Presumably I need a multi-currency TW account .Should your pension be paid directly to your TW account, do you need just an account and sort code or an IBAN number.Can you send pension to TW and hold the funds there awaiting a favourable exchange rate or can you only do that with pensi9on funds being in your uk bank. Thanks nic.

Sorry nic but I can't help with some of your questions as I,m not on a state pension yet. I transfer money when I feel the rate is at it highest from my UK bank to Transferwise and they then transfer it to my Spanish bank. My transfer last week took under a minute from my transferring to TW and the money appearing in my Spanish account.

Nic

Looking at your recent posts, I have to say that the last time the interbank mid rate hit €1.15 was way back in early spring 2020, but you were merely making an example of course.

Thr problems with having payment of the state pension or other funds, directly into one's bank here on the day of issue is the lack of control of the rate used, although the DSS uses World Bank and the rate is very good, relative to others, at the time. I prefer to transfer at a rate of my choosing, and thus I keep a beady eye on the rate via XE.com. I have been using Currencies Direct for many years and find them invariably friendly and effecient. They also have two offices close to me, so could have face to face discusions if need be.

It would have been so much easier had the UK joined the Euro back in the day. We will have to wait for the rejoining, when we will not have the chance to demur. 

My wife and I have a Nationwide FlexPlus account which costs £10 a month to service and allows us to draw €1 000 a day (€500 each) from most ATMs at Visa Exchange Rate (comparable with Transferwise) with no other charges/fees/costs. We keep Euros in LaCaixa for direct debits, otherwise use cash for everything. I find the less I have to do with Spanish banks the better.

https://www.visa.co.uk/support/consumer/travel-support/exchange-rate-calculator.html

Hi Guys, Thank you all so much for the very helpful info. I have our sabadell account linked up to so many accounts like amazon, ebay, paypal etc that I want to keep the account but avoid paying transfer fees. These is early days and I am sure that many "systems" will fall into place that will enable us to avoid these brexit gravy train banks.

TW and currencies direct payments avoid bank charges so for me I just need to work out the best way to have my state pension paid and my Wifes pension later this year.

I have started looking into digital bank account but again must avoid charges.

My further email to Santander has thus far remained unanswered, I wonder why.

Should any of you guys find the answer please share with us all. nic

Whilst banking is a personal choice, there are a few things to remeber - firstly that there are unknowns that are boing sorted out now that the Transistion Period, sorry teh 12 month delay in agreeing things that was foistered onto the UK to try and bully Boris into accepting aworse deal than he got.

Building Societies, such as Halifax who I have an 'bank' account with, are not banks and do not operate as such. In particular transfers can only be done in 'working hours' unlike normal banks so there are delays.

The Big Five Banks will continue to make money out of their customers.

New banks like Starling can be much leaner and fitter but possibly lack clout. Transferwise is a Money Transfer company offerring some very good facilities and flexibility.

All this can be done for free or at low cost but what really frustrates me is the way they are mixing on-line banking with using smart phones for validation. I can more than understand the Cyber Security issues but they are getting to the point of overkill. 

Personally I've movd all my non mortgage transactions from Sabadell and can controle them via Starling which allows me to put money straight into it from my First Direct (HSBC) account then instantly transfer it to my Euro Account.

Unfortunately tehre are problems with transfers under SEPA system using IBAN numbers at the moment. 

Hi Mike&helen, thanks for the info, most interesting. I am to banking/finace what abbott is to math.

So are you suggesting that we see this year out and leave matters in abayance to see if spanish banks change their policy over charges.meanwhile I thnk I shall move pensions to TW for payment.

Here is some usefull information if you search

Financial Conduct Authority Hoe Brexit Could Affect You

I understand they are looking at all these issues - The UK is one of the 36 Single Euro Paymenst Area countries which includes the 27 EU member states, 8 of which don't use the euro.  

Things will get resolved soon I hope.

Further update on This is Money

British expats in the EU face financial headaches as European banks hike international payment fees and British ones close their accounts

Hi Mikeandhelen. Most interesting but surely not a masive headach. the currency brokers that want our business are moving Their "accounts around. As an example excell currencies will accept your gbp pension and convert to Euros.l Then it is transfered to one of the EU banks and from there to spain

Hi Nicbax

I've just today had my monthly salary paid into my Sabadell account from the Nationwide Bldg Soc. No fee for doing so.  But I will be keeping my beady eyes on them just to make sure they don't sneak something in.

Conversation with my insurance broker with which I have House and Life insurance:

"Unfortunately due to EU financial regulations since Brexit, we are no longer able to accept direct debit payments via a UK Bank Account for insurance premiums.

Please can you provide us with your Spanish IBAN number for your life insurance payments?"

My Reply:

"While the current situation is undoubtedly something to do with Brexit, the fact remains that the UK is part of the Single Euro Payments Arrangements (SEPA).

36 Countries are members of SEPA, 9 are not in the EU and 8 countries within the EU do not use the EURO.

This seems to be a Spanish problem.

I have made direct payments from my UK based SEPA compliant, Euro Bank account for both my and my wife’s personal insurance policies this month, so you should see them if you check both accounts.

I view this as a temporary problem in that for some reason the Direct Debits are not being processed.

I will continue to do this until such time it is sorted out, then I expect the payment to be taken from my UK based Euro Account.

Sorry to be awkward but it’s not me playing games."

Their Reply:

"I have spoken to xxxx and at the moment due to brexit we can´t receive direct debit payments from uk bank accounts.

We can accept transfers, cards or a Spanish IBAN.

If you wish you can transfer money directly from your uk account to Libertys account."

So will they accept direct debits from another EU country?

None of the Direct Debits from my Starling Euro Account have processed this year.

Hi Jimbofinn, That is most interesting, many thanks. By coincidence a couple of people on our facebook had uk transfers and were charged by sabadell. They went to their branches and complained so the bank cancelled the charges.This may well be the answer. I am off to my branch and hall report back.nic

I transferred money by Xe.com into my non- res Sabadell account. The transfer arrived today with no fees. Need to wait and see now if it gets added to my quarterly charges.

Mark

My monthly Transfer into my Sabadell Accunt from my Starling Account attracted and 18Euro Charge from Sabadell.

In reply to porblem with Direct Debits from my Starling UK based, SEPA cpmpliant Euro Account, sfter a coupl of weeks of asking:

"Thanks for getting in touch. I work in the payments team at Starling

Since January 1st and the UK’s departure from the EU, we have become aware that UK customers with UK based EUR accounts may be experiencing problems setting up and/or paying direct debits to EU service providers.

Even though the UK is no longer part of the EU, it is still part of the Single European Payments Area (SEPA) and is considered a ‘third country’. As a result of this, there are changes to data requirements for payments to and from the UK. EU banks are legally required to provide the address of the paying customer to UK banks when requesting payment on behalf of a service provider from their UK bank account.

If a service provider refuses to accept your bank details when you sign a direct debit agreement because the IBAN contains the country code ‘GB’, they could be committing IBAN discrimination, which is against the law. (Article 9 of the SEPA Regulation).

**What can you do if your direct debits are failing or you can not set up / amend a direct debit**

1. Make sure your service provider has the correct address for you on file and let them know that your Starling account supports SEPA Direct Debits and this should be sent to their bank for onward processing

2. If they still refuse your bank details they are in breach of Article 9 of SEPA Regulation, and we suggest you follow up with a formal written complaint.

3. If you do not receive a satisfactory response to your complaint, you can report the alleged breach to the relevant competent authority.

We’re sorry for this inconvenience but unfortunately we are currently dependent on the service providers accepting the IBAN as required by SEPA Regulation. We are continuing to look into how we can improve your experience and we will keep you updated on any changes.

Well thank you very much Starling , you are really on the ball and looking after your customers.

How about you acting on behalf of your customers? ANd how many time did I point out to you that they were wworking last year?  And that the reason was not insufficient funds.