Quote

“I'd rather regret the things that I have done than the things that I have not.”
― Lucille Ball

Wednesday, August 26, 2015

TransferWise Excellent Money Transfer Company

If you have to transfer regularly money like I do, between your funding country and the country you are living in - e.g.as a pensioner living abroad, or as an OFW1) sending money to your family in the Philippines - you should consider to make use of TransferWise.

TransferWise is a three year old (or young!) company sponsored by several venture companies and funding by Sir Richard Branson, the founder of Virgin Atlantic Airlines.

As they are saying on their web site, they are beating the banks and they really do, including Western Union, which is used by many OFW's.

I tried it out several times and conducted a comparative test between the classic bank transfer (from ABN NL to BDO PH) and TransferWise. Below you find the details for two transfers of € 1,000.00, initiated on the same day in July 2015.

Read here how it works. Below you find the details of my transfers (items 1 and 2), a conclusion (item 3) and  an performance overview of  a test done with some British banks and Western Union (item 4).

As you will see from my test below, TransferWise is really much cheaper and faster than the traditional international bank to bank transfer.


  • Bank transfer (from ABN-NL to BDO-PH)

Transmitting date: July 27, 2015
Receiving date: July 31, 2015
Amount transferred: € 1.000.00
Amount received: PhP 49,069.90
ABN administrative cost: € 9.00 (not included in amount transferred) 
All-in calculated conversion rate: 48.6322 (49,069.90 / 1009.00)


  • TransferWise transfer (from ABN to TransferWise to BDO)



Transmitting date: July 27, 2015
Receiving date: July 27, 2015
Amount transferred: € 1.000.00
Amount received: PhP 50,069.77
TransferWise administrative cost: € 9.90 (deducted from amount transferred) 
All-in calculated conversion rate: 50,0697 (50,069.77 / 1000.00)

  • Conclusions

1) Indeed TransferWise is cheaper. In this case I got (50,069.77 - 49,069.90) = PhP 999.87 more via Transferwise than via a traditional international bank transfer and I paid € 9.00 (which is more or less 450 PhP) more to the bank than to TransferWise.
2) So in total the difference is PhP 1450 or more or less  € 29.00
3) TransferWise is faster, delivery date difference is several days. 

Note 1): OFW means: Overseas Filipino Workers
Note 2): The mid-market conversion rate on July 27 was 50,5704.



  • Transfer performance comparison table from the TransferWise website.




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