Life, Money, What's New
Published on September 12, 2019 11:08 pm, by Pete Lalor
It’s a familiar story – if you bank with one of the big 4 banks you are probably paying too much. Our analysis of transaction accounts, savings accounts, credit cards and mortgages proves this over and over again.
It also applies to International Money Transfers. Last week the Australian Competition and Consumer Commission (ACCC) released the results of it’s inquiry into Foreign Currency Conversion Services. The inquiry focused on International Money Transfers, foreign cash services, credit and debit card foreign currency conversion services and pre-paid travel card services for consumers and small to medium sized enterprises.
Foreign currency conversion services are important – each year Australian consumers purchase more than $40 billion dollars in foreign currency.
The key findings weren’t that surprising:
The ACCC made the following recommendations for consumers:
For all foreign currency services
When sending money overseas
When travelling overseas
When shopping online
You can read the full ACCC Report here.
Here is a list of cards that might be cheaper than your current card for overseas transactions
|Product name||Card network||Purchase interest rate||Interest free days||Cash advance rate||Cash advance fee (%)||Cash advance fee ($)||Normal annual fee||First year annual fee||Complimentary travel insurance||Website link|
|BankWest Breeze Platinum||Mastercard||9.90%||55||21.99%||2.00%||$4.00||$0.00||$0.00||Yes||Link|
|HSBC Low Rate Credit Card||Visa||12.99%||55||25.99%||3.00%||$4.00||$99.00||$99.00||Yes (Domestic)||Link|
|BankWest Zero Platinum||Mastercard||17.99%||55||21.99%||2.00%||$4.00||$0.00||$0.00||Yes||Link|
|Coles Rewards Mastercard||Mastercard||19.99%||55||19.99%||3.00%||$1.95||$99.00||$99.00||No||Link|
|28 Degrees Platinum Mastercard||Mastercard||21.99%||55||21.99%||3.00%||$4.00||$0.00||$0.00||No||Link|
Here is a list of transfer services that might be cheaper than the transfer service you currently use. The costs were calculated using a transfer of $1,000 AUD to USD
|Company name||Minimum amount||Online transfer fee||Transfer speed|
|OFX||$250||$15||1 - 2 days|
|Remitly||$10||$3.99||3 - 5 days|
|Word Remit||$1||$3.99||within an hour|
This summary has been prepared by MoneyBrilliant Pty Ltd (AFSL 492711). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice or taxation advice you should seek advice from a licensed financial adviser or tax agent.
Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.