England, Sterling and planes

It seems that despite what every banker will tell you, the bank won't give you an exchange rate anything close to what you will find on the internet when you transfer money from a sterling account to a euro account.

According to Boursorama.com, the rate on the 17th of August was 1.1655. On the 17th, I transferred 5000£ to my new euro account in germany. I was charged 15£, and I received on my german account 5591.50€ - that's a rate of about 1.118. At the rate indicated on Boursorama, I could have got 5827€ - 236€ more. Add to this a 15£ fee - that payment roughly cost me 250€.

Considering that a good currency exchange office would cost me about 1.5-2% of 5000€ (100€), it would be 150€ cheaper to exchange it here in Berlin - which is, heck, more than a return ticket to London. In other words, flying to London, getting my money cash (for any amount higher than 5000€), and changing it back here in Berlin would probably be cheaper than leaving my bank do the payment.

Maybe not the best way to get to my money, carbon-footprint-wise? Anyone experiencing the same issue? Ideas welcomed...

PS: Of course the rate you get when doing a payment is "secret" - you have no way to check it in advance, neither online or by calling your bank - and even afterwise, you have no way to check if your bank has applied the rate specified by the Bank of England, or applied a lower rate and taken a commission.

 



Comments:

Hi Yann. I transferred some £ some weeks ago to my account in € in Spain and all I can say is that the rate was right and I got the money I expected according to the website where I check (almost everyday) the money's price: www.xe.com

Greetings.

Posted by RafaMj on August 22, 2009 at 02:45 PM GMT+00:00 #

none.

Posted by Rob Miller on September 08, 2011 at 12:14 PM GMT+00:00 #

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