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ryanbrezzi
Joined: 23 Jun 2011
Location: Seoul, South Korea
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 Posted: Sun Jul 10, 2011 3:58 pm Post subject: How do I get best bang for my buck when converting currency? |
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Hello,
My wife and I are living in Seoul and are trying to save as much money as we can and are trying to decide which bank is best to go with. I have taught in Korea for two years with a break in between and am now back. Last time I lost a lot of money in the process of converting the currency when I went back to Canada. I have heard some banks are better than others, for example, internatioal banks (?), or perhaps some banks don't have as many fees when converting currency(?). Also, I'm thinking it's better to convert when in Korea compared to converting once back in Canada. Does anyone know any better ways to go about doing this? Which banks are better? Or does anyone have some tips? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun Jul 10, 2011 5:17 pm Post subject: Re: How do I get best bang for my buck when converting curre |
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| ryanbrezzi wrote: |
Hello,
My wife and I are living in Seoul and are trying to save as much money as we can and are trying to decide which bank is best to go with. I have taught in Korea for two years with a break in between and am now back. Last time I lost a lot of money in the process of converting the currency when I went back to Canada. I have heard some banks are better than others, for example, internatioal banks (?), or perhaps some banks don't have as many fees when converting currency(?). Also, I'm thinking it's better to convert when in Korea compared to converting once back in Canada. Does anyone know any better ways to go about doing this? Which banks are better? Or does anyone have some tips? |
Ya. DON'T TAKE WON OUT OF KOREA.
Send money home as little as possible (largest amounts and least fees as a percentage of the money sent).
Use internet banking if you can. Lower fees than counter service.
Don't send money to a credit union (you get hammered by intermediary bank fees).
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TeaTime
Joined: 12 Jan 2011
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| Posted: Sun Jul 10, 2011 9:06 pm Post subject: |
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| I didn't know that about credit unions. Weeeeell, one more thing I've got to figure out in the next month, I guess. Though I was also wondering (from the other thread), what the difference between HSBC, a regular bank, and is it really better to transfer money from/to the same bank? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun Jul 10, 2011 9:38 pm Post subject: |
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| TeaTime wrote: |
| I didn't know that about credit unions. Weeeeell, one more thing I've got to figure out in the next month, I guess. Though I was also wondering (from the other thread), what the difference between HSBC, a regular bank, and is it really better to transfer money from/to the same bank? |
It won't really make any difference.
They all operate at arms length from each other; by that I mean that the HSBC at home operates at arm's length from HSBC in Korea.
It is NOT like different branches of the same bank within your home country - it is like different banks that just happen to have the same name.
In virtually all cases you are looking at about US$40 to send money to a North American bank and about 40-50 quid going to the UK. (I don't know the costs for sending money to NZ/AUS/S.Africa).
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ryanbrezzi
Joined: 23 Jun 2011
Location: Seoul, South Korea
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| Posted: Mon Jul 11, 2011 1:41 am Post subject: |
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| Thanks a lot for your words of advice. I think the Internet banking could be the ticket. Do you know if they take a percentage cut of the total amount being transferred for Internet banking? Or is it a set rate for the service? That would be awesome if it were just a set rate. Also have to wonder if there is a conversion fee when the money is transferred electronically. Do you guys know anything about that? |
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ryanbrezzi
Joined: 23 Jun 2011
Location: Seoul, South Korea
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| Posted: Mon Jul 11, 2011 6:39 pm Post subject: |
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| Actually i read a good way is to use banker's drafts. They are super cheap and reliable. They are basically a cheque which you cash when you get back. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Jul 11, 2011 7:34 pm Post subject: |
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| ryanbrezzi wrote: |
| Thanks a lot for your words of advice. I think the Internet banking could be the ticket. Do you know if they take a percentage cut of the total amount being transferred for Internet banking? Or is it a set rate for the service? That would be awesome if it were just a set rate. Also have to wonder if there is a conversion fee when the money is transferred electronically. Do you guys know anything about that? |
You pay the spread (the difference between the buy/sell rate and the bank rate) as you would anywhere. This is usually about 1% for wire remittances.
Then there is the flat fee (about 5-20k won depending on which bank and whether or not you use an ATM/internet or counter service). In addition there may be an additional fee added by YOUR bank in the states for accepting an inbound remittance and there may be an additional fee if an intermediary bank is needed (not usually the case if you are at a "national" as compared to a local or regional bank. ALWAYS the case if you use a credit union.
| ryanbrezzi wrote: |
| Actually i read a good way is to use banker's drafts. They are super cheap and reliable. They are basically a cheque which you cash when you get back. |
It is like a check. You buy it (cash rate), make it payable to yourself and mail it to your bank with the endorsement "For deposit only to the account of the payee, #xxx-xxx-xxxx".
Other than the fee to buy the check (usually about 5000 won), 560 won for postage, and 15 won for an envelope there usually aren't any other fees.
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R. S. Refugee
Joined: 29 Sep 2004
Location: Shangra La, ROK
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| Posted: Tue Jul 12, 2011 6:12 pm Post subject: |
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| ttompatz wrote: |
| ryanbrezzi wrote: |
| Actually i read a good way is to use banker's drafts. They are super cheap and reliable. They are basically a cheque which you cash when you get back. |
It is like a check. You buy it (cash rate), make it payable to yourself and mail it to your bank with the endorsement "For deposit only to the account of the payee, #xxx-xxx-xxxx".
Other than the fee to buy the check (usually about 5000 won), 560 won for postage, and 15 won for an envelope there usually aren't any other fees.
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So, can you buy this banker's draft denominated in dollars or does it have to be in won?
Also, what kind of protection is there when sending it in the post against loss or thief? Can it be insured?
I'm looking for the cheapest ways to avoid the sending bank and receiving bank fees, but want to have protection against the banker's draft going missing in transit.
Thanks. |
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jazblanc77
Joined: 22 Feb 2004
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| Posted: Tue Jul 12, 2011 7:27 pm Post subject: Re: How do I get best bang for my buck when converting curre |
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| ryanbrezzi wrote: |
Hello,
My wife and I are living in Seoul and are trying to save as much money as we can and are trying to decide which bank is best to go with. I have taught in Korea for two years with a break in between and am now back. Last time I lost a lot of money in the process of converting the currency when I went back to Canada. I have heard some banks are better than others, for example, internatioal banks (?), or perhaps some banks don't have as many fees when converting currency(?). Also, I'm thinking it's better to convert when in Korea compared to converting once back in Canada. Does anyone know any better ways to go about doing this? Which banks are better? Or does anyone have some tips? |
Launder it. |
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freddy teacher
Joined: 01 Jan 2011
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| Posted: Tue Jul 12, 2011 8:06 pm Post subject: |
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| sometimes banks have coupons on their websites that offer discounts when converting currency... |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jul 12, 2011 10:49 pm Post subject: |
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| R. S. Refugee wrote: |
| ttompatz wrote: |
| ryanbrezzi wrote: |
| Actually i read a good way is to use banker's drafts. They are super cheap and reliable. They are basically a cheque which you cash when you get back. |
It is like a check. You buy it (cash rate), make it payable to yourself and mail it to your bank with the endorsement "For deposit only to the account of the payee, #xxx-xxx-xxxx".
Other than the fee to buy the check (usually about 5000 won), 560 won for postage, and 15 won for an envelope there usually aren't any other fees.
. |
So, can you buy this banker's draft denominated in dollars or does it have to be in won?
Also, what kind of protection is there when sending it in the post against loss or thief? Can it be insured?
I'm looking for the cheapest ways to avoid the sending bank and receiving bank fees, but want to have protection against the banker's draft going missing in transit.
Thanks. |
It is the same as a money order. If lost it can be replaced (but takes time).
The letter can be sent registered or EMS (13k won - trackable and traceable via the internet) if you are really paranoid about it.
They can be bought in dollars (drawn on a US bank).
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thejasman1
Joined: 13 Sep 2010
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| Posted: Thu Jul 14, 2011 6:20 pm Post subject: |
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| I'm assuming you already checked the exchange rates for exchanging dollars to won. Today it's http://www.x-rates.com/calculator.html 1 us dollar is 1,058.93 won good luck! |
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atwood
Joined: 26 Dec 2009
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| Posted: Thu Jul 14, 2011 7:07 pm Post subject: |
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| If you wait and send only large amounts home--good advice on that above--you can usually get a better rate of exchange. Just make sure and ask for it. |
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