HSBC v Currency Broker

[MTut]

HSBC are currently running a nice little incentive for switching UK banking accoutnns to them - £150 now, £50 in a year.

https://www.hsbc.co.uk/1/2/current-accounts/hsbc-advance

Now, this has no fee and includes the ability to withdraw cash from overseas ATMs. It also has the global banking option where you can transfer from UK to an Aus HSBC without transfer fees.

Has anyone had experience on this in terms of the rate you get compared to a broker?

I was planning on retaining my Nationwide Flexplus account in the UK for the odd ATM withdrawal (these are free overseas.) but the monthly fee has gone up to £13 p/m.

I'll still have around £10k per year in rental income in the uk, of which I'd imagine half I'll bring over as an when needed, so not huge amounts.

Wondering whether this is a simpler solution or to stick with Nationwide, an Australian acocunt and broker transfers each month?

[Ken]

Be very wary of any offer to transfer currency "without transfer fees". In most cases they're making a big profit in the difference between the buy and sell rate of the currency (the spread) and so have no need to charge a transfer fee because it's just loose change in comparison. Always compare the actual amount you'll receive (after deducting any fees) to see who is offering the best deal. The difference between an exchange rate that is 2% away from the mid-market point and one that is 1% away from the mid-market point is $1,000 on a $100,000 transfer. A transfer fee might only be $10. I'd rather pay $10 if it's going to save me $1,000.

 

I'd also be very wary of banking with HSBC in the light of some the information they've been collecting about their customers under the headline "HSBC Safeguard". It certainly wouldn't make me feel safe if I was one of their customers - but then again your bank will always know an awful lot of personal information about you it's just that most aren't stupid enough to demand you to write it all down on one form!

Edited July 19, 2017 by Ken

[MTut]

True, they'll obviously be making some money somewhere.

However, I guess this won't be for me to make payments at that high a level but more a little and often. Say £500 a month-ish just to supplement here and there, especially in the short term.

I've heard some Aus banks will charge you a fee for recieving foreign payments of $10-$12, when recieving money from a broker? 

If so, that would negate any real currency rate savings, when with HSBC I could go from my UK to AUS account without a transaction fee.