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sim
Joined: 08 Sep 2006
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 Posted: Tue Dec 12, 2006 7:39 pm Post subject: wire transfer to UK |
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ok im a bit confused about this whole thing, maybe someone can send some light. l looked up the exchange rate of 2 million KRW into British pounds online today and it confirmed it at 1099, but then when i transferred the money home at my korean bank (kiup bank) they only transferred 1070.
my question is where did that 30 quid go? did the korean bank charge me 60,000 won. if so thats seems extreme, as the intermediary will also take about 20 quid. Total of 80 pounds out of pocket....
does this seem normal?
any advice appreciated  |
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SPINOZA
Joined: 10 Jun 2005
Location: $eoul
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| Posted: Tue Dec 12, 2006 7:41 pm Post subject: |
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very normal.
your UK bank charged you some rip-off receiving fee.
With Barclays it's 12 quid, but possibly yours is more expensive?
edit: at KB, you get charged 8,000 (I think - it's small anyway) and there's no intermediary fee as far as I know. So it's a couple of quid for KB and 12 quid for Barclays, so not too bad. |
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ilovebdt
Joined: 03 Jun 2005
Location: Nr Seoul
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| Posted: Tue Dec 12, 2006 8:42 pm Post subject: |
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I transfer money to the UK through KB too.
The fee for KB sending the money is around 8,000 won. My bank DOES NOT charge anything to receive the money, I have called them to confirm this.
HOWEVER, KB in the UK takes 12 pounds off of each transfer I make.
ilovebdt |
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eamo
Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.
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| Posted: Tue Dec 12, 2006 8:53 pm Post subject: |
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| It's almost certainly your British bank taking the lions share of the transfer fee. I hated banks back home. 20 quid for a letter to tell you you're overdrawn!! Parasites. |
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sim
Joined: 08 Sep 2006
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| Posted: Tue Dec 12, 2006 9:49 pm Post subject: |
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i know, ive had a few of those letter. scandalous so it is.
thanks for the replies  |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Dec 12, 2006 9:55 pm Post subject: Re: wire transfer to UK |
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| sim wrote: |
ok im a bit confused about this whole thing, maybe someone can send some light. l looked up the exchange rate of 2 million KRW into British pounds online today and it confirmed it at 1099, but then when i transferred the money home at my korean bank (kiup bank) they only transferred 1070.
my question is where did that 30 quid go? did the korean bank charge me 60,000 won. if so thats seems extreme, as the intermediary will also take about 20 quid. Total of 80 pounds out of pocket....
does this seem normal?
any advice appreciated |
You pay 3 different fees when you send money home.
You pay a transfer fee here. You pay a receiving fee at your home bank AND
you pay a currency exchange fee.
The first 2 you are stuck with but they are somewhat variable depending on the banks involved.
Now to answer your question.
The exchange rate you see on the internet is the overnight rate between National banks (Bank of England or Bank of Korea or the US FED are examples) or LARGE currency traders (multi million/billion pound/dollar funds).
You, as a retail customer, doing small exchange transactions pay a different rate. When you check the rates at a bank they will have a buying and selling rate.
The difference between the rates is the banks hedge on fluctuations and their profit margin. The spread is usually about 4%. This means that you will typically pay a price that is about 2% different each way from the overnight rate both when you are buying and selling currency the local currency.
I hope that was clear enough to answer your question. |
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sim
Joined: 08 Sep 2006
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| Posted: Tue Dec 12, 2006 11:26 pm Post subject: |
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crystal...thanks a lot for that informative reply!
so what about if i use the exchange service in the airport? was thinking about doing that... |
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vexed
Joined: 25 Aug 2006
Location: Daegu
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| Posted: Wed Dec 13, 2006 12:07 am Post subject: |
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| ilovebdt wrote: |
| My bank DOES NOT charge anything to receive the money, I have called them to confirm this. |
Can I ask which bank this is? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Dec 13, 2006 1:03 am Post subject: |
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| sim wrote: |
crystal...thanks a lot for that informative reply!
so what about if i use the exchange service in the airport? was thinking about doing that... |
They are run by the local banks and charge a rate differential that is about 1% more buying and selling than the normal banks. (6% spread instead of 4%).
The advantage is they don't stamp your passport and they have many currencies (Baht, Pesos, Yuan, etc) not just the usual ones (GBP, USD, EUROs). |
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essexboy
Joined: 11 Jun 2006
Location: close to orgasm
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| Posted: Wed Dec 13, 2006 2:53 am Post subject: |
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| i had the same problem. Abbey frickin national and my citibank here pulled my pants down royally; i had to pay 100,000 from a million. |
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ilovebdt
Joined: 03 Jun 2005
Location: Nr Seoul
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| Posted: Sun Dec 17, 2006 6:50 pm Post subject: |
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| vexed wrote: |
| ilovebdt wrote: |
| My bank DOES NOT charge anything to receive the money, I have called them to confirm this. |
Can I ask which bank this is? |
NatWest
ilovebdt |
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ilovebdt
Joined: 03 Jun 2005
Location: Nr Seoul
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| Posted: Sun Dec 17, 2006 6:51 pm Post subject: |
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| essexboy wrote: |
| i had the same problem. Abbey frickin national and my citibank here pulled my pants down royally; i had to pay 100,000 from a million. |
That's a ridiculous amount to pay!
ilovebdt |
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