Lowest transfer fees – TransferWise

The Banks vs TransferWise

We all know that when transferring money, the bank takes a good chunk of the money. This effect is often amplified when transferring lower amounts (like me). TransferWise offers the lowest transfer fees (to which i am aware of). This is an 100% unbiased review of TransferWise, and based on my own personal experience.

My personal bank takes a fee of ~7 euro when transferring cross-boarders and have very high exchanges rates. However, i have recently been informed about TransferWise. This service significant lessens the monetary burden of transferring money cross-boarders.
To show an example of the usefullness of TrasferWise i will use their own illustrations.

Example of TransferWise' price of transaction.
Example of TransferWise’ price of transaction.

I have been sending 800 DKK equal to ~107,22 to my Nordnet account to buy index and mutual funds for about half a year. This is a Danish-to-Danish transfer and therefore i have had no expenses in connection with the transaction. However, i will be transferring these 800 DKK to a peer-to-peer lending site from now on (Marts-2019). My own bank are taking 50 DKK per transaction equal to ~7 euro per transaction. Before my bank sends the money they exchange them to Euro, which has been costing up to ~4 euro additionally. Looking at the TransferWise’ own example, i will receive 106,23 euro of my 107,22 euro.

Bank transactionTransferWise transaction
Account worth96,22106,23

I would, anyday of the year, chose to transfer through TransferWise rather than my own bank. I can look forward to a 10,01 euro saving for the monthly transfer.

Options of TransferWise

TransferWise is by far not limited to the traditional bank transfers:

The four options of adding funds to TransferWise.
The four options of adding funds to TransferWise.

You have the additional feature of adding funds by debit or credit cards as well. This will however add a 0,32 euro fee. Not critical and the money will arrive instantly. The extra choices is always nice, e.g. if a high yielding project is posted on Envestio, we know they are funded rapidly and you want the money transferred fast.

When the funding method has been selected and the information has been filed you either has to wait for the funds to arrive (e.g. if you have chosen bank transfer), otherwise you can view you funds on your TransferWise account.

Sending funds from TransferWise

With funds now available at you TransferWise account you can freely transfer them to any other accounts you might have in the world. You can exchange you funds to almost any currency you can think of.

I made a deposit of 3000 DKK i wanted to exchange to Euro. The exchange fee ~1.5 euro. Normally my bank takes ~7 euro for this exchange. By looking at the exchange rate at a third party live currency exchange, i could determine that the exchange rate was the live rate, and not a higher rate to leverage the exchange.

Convertion of 3000 DKK to Euro.
Convertion of 3000 DKK to Euro.

The 400 euro which i just exchanged from DKK, is going to the p2p-lending platforms Mintos and Envestio. I decided to split the money fifty/fifty. Hence transferring 200 to Mintos and 200 to Envestio. To transfer you simple enter the details of you account details (in my case the details provided by the p2p-lending platform). There was a small fee of 0.8 euro to transfer the 200 euro.

A transaction of 200 euro
A transaction of 200 euro

When the transferring details are provided and confirmed you get a visual overview of the process and the estimated time frame. I started the transfer a Friday night, and TransferWise estimated a 2 days waiting time. It is my guess that they work Monday to Friday.

The transfer process.
The transfer process.

To conclude the transfer – Low fees!

As previously mentioned my bank has taken around ~7 euro for an international transfer and ~4 euro in exchange fees. This is a simpler process, as it only involves your bank account and the receiver account. TransferWise is a middleman and will add extra processes to be made. However cheaper, and let me prove it by adding up the numbers.

TransferWise took ~1,5 euro to exchange my DKK to euro. The transfer from TransferWise to my p2p-lending account was solely 0.8 euro.

Total cost~11 euro~2.3 euro

Hence i save ~8,7 euro on this transfer. If i transfer at least once a month i end up saving ~104.4 euro per year.

My conclusion is therefore that everyone should use TransferWise instead of their own bank. Unless you can of course transfer cheaper with your bank.

My personal experience using TransferWise

Whenever i use TransferWise, i use the deposit “model” as i just described. It saves me money any time i need cross-boarder deposits. So far i have only had one problem. This was when trying to deposit ~200 EUR to my Mintos account.

However, this was a one time problem and has worked fine since.

Disclaimer: This post may contain affiliate links. I may receive a commission when you, the visitor, uses an affiliate link. Investing involves risk of losses.
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I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments, and everything financially relevant.
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