TransferWise alternatives for getting Money into NZ from UK

ranjitsinghrai90 on 28/09/2020 - 10:53

Hi everyone,

I have been using transferwise account from last few months to get money into NZ bank account from UK. Transferwise has closed my account without any reason or notice. Tried to ask them but they're not saying anything.

Does anyone know about better alternative?

Reasons for choosing Transferwise were-

1) It lets you open bank account(virtua) in the currencies it supports. So, I used to give other party my Transferwise Uk bank account (virtual) no and then transfer from UK bank account to Transferwise NZ bank account (virtual). After that I deposit from virtual nz bank account to my real bank account. Thus, saving lots of bank charges.

2) They also offer Mastercard with options to save many currencies. I used that card as eftpos when I visited Australia.

3) Better exchange rate and less fee as compared to Western union.

Could anyone please suggest better alternative?

Thanks

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  • evilplan on 29/09/2020 - 22:48
    +5

    I use foreign exchange services regularly and have used a few over the last 10 years in my search for the best solution. TransferWise currently have the best overall offering that I am aware of, however I can offer a comparison to some others based on my experiences.

    • TransferWise: Very good exchange rates with high transparency (they use a mid-market rate and show their fees separately instead of hiding them in the spread). Their website and mobile apps are easy to use and are both are fully featured. Fast deposits and withdrawals which are mostly limited by delays in the banking systems in each country with low withdrawal fees making them great for small transfer amounts. Have a multi-currency account which allows you to keep money in many currencies and get your own bank details for some of them. A platinum debit Mastercard is available (apparently NZ$14 now) which will spend balances in the respective currency of the transaction first before converting other balances using their great exchange rates (the mobile app notifies you of any transactions in real time).
    • CurrencyFair: Exchange rates equivalent to TransferWise with less transparency around fees baked into the spread. Allow you to set your preferred rate and wait for it to be matched which can be useful if you aren't in a rush and have patience (not supported in the mobile app). Be aware that their markets close over weekends (Friday night through Sunday night, Ireland time). Slow to recognise deposits and process withdrawals (takes a few days to move between NZ and AUD vs same day with TransferWise) which can be frustrating. Has higher bank withdrawal costs than TransferWise (eg. NZ$5 vs NZ$1.45). Is a multi-currency account by default which allows you to keep money in many currencies. You are allowed to use their bank details to receive money from other parties overseas however you need to make sure they use your account number as a reference. They have no card available at this time.
    • Revolut (not available to NZ residents yet): Very similar offering to TransferWise but seem to market themselves more towards travellers. Rates are some of the best if you stay under their free thresholds and typically only a little worse than TransferWise/CurrencyFair once you exceed them. Rates are marked up over weekends so it is best to avoid transfers then. They have a multi-currency account with the added ability to create multiple accounts each currency to help organise your money. They have a few different card options available. If you have an Australian or UK phone number and can verify your identity and residency in that country then you may be able to activate an account. Some people experience issues with their account being temporarily frozen each time they make a top-up, though it is unclear whether this is due to the size of their deposits.
    • OrbitRemit: NZ based (yay)! A more traditional money transfer/remittance service for point to point transfers with rates almost as good TransferWise/CurrencyFair. Only allows transfers to be sent from NZD/AUD/GBP.
    • HiFX / XE: HiFX were a well established UK based foreign exchange broker focused on the UK, Australia and NZ which has now been merged ("joined forces") with XE. I used them for a few years when transferring reasonable amounts of money and found them reliable with decent rates which were not quite as good as TransferWise/CurrencyFair/OrbitRemit now offer. XE's rates sit about halfway between TransferWise/CurrencyFair and PayPal
    • PayPal: Poor exchange rates but convenient as many people already have accounts. Allows you to hold multiple currencies and can be used to request money from people in other currencies. May be suitable if you only occasionally want to transfer small amounts and don't want to sign up and get verified for one of the better options.
    • Banks: Poor exchange rates with slow clearance times. Rates are typically better than PayPal's prior to the high fixed fees which makes them a bad option for both small and large amounts.

    TLDR: Without knowing more information, CurrencyFair is probably your next best option if you can no longer use TransferWise as it meets your 1) and 3) reasons. Unfortunately TransferWise have the only decent solution for for 2) if you are a NZ resident (disregarding the underwhelming airline related travel cards), however if you are able to open a Revolut account overseas then it should hopefully meet all your conditions.

    If you decide to use CurrencyFair and will be making a transfer greater than €2000 or equivalent at any time then you can also get a €30 referral signup bonus (which they deposit after you withdraw that transfer). You can probably find a referral code online or can message me to get one if that is allowed.

    • Alan6984 on 30/09/2020 - 00:07

      I have no particular need for this right now, but just wanted to say 'thanks' for a superb post.

      Alan.

      • evilplan on 01/10/2020 - 23:20

        Glad to hear it was appreciated!

        PS. Neil has added CurrencyFair to the referral system if anyone wants it.

    • asterix on 08/10/2020 - 22:15

      my thanks as well evilplan! nice to know the alternatives available.

  • BargainHunter on 29/09/2020 - 08:26
    +1

    Hi, have not done a lot of transfers although have found hifx https://www.hifx.co.nz/ to be pretty good. Not sure if they offer the "bank account" which I think you mean is like a holding foreign exchange account or not.

    When I have used them, get the quote online and ALWAYS call them afterwards as the guys on the phone seem to give a better exchange rate in my experience. Imagine it must be sales/commission based for them.

    Good luck

  • 36wish on 29/09/2020 - 12:00
    +1

    Revolut gets you 2) and 3) but no NZD virtual accounts yet. You'll need someone in UK/EU to give you a hand in signing up.

  • kiwical on 29/09/2020 - 08:11

    I've always just used paypal. No idea if the cheapest, but painless and secure.

  • ranjitsinghrai90 on 30/09/2020 - 20:10

    Thanks everyone.

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