Transferring money to South Africa
Costs of transfering money to South Africa
How exchange rates effect the cost of your property
General Forex Tips and Advice

Transferring Money to South Africa

Transferring money to South Africa is a very simple process.

Foreign exchange and international money transfer services to South Africa are provided by:

- your personal bank, and
- specialist money transfer agents

The above service providers will convert your foreign currency to South African Rand and transfer your funds to a nominated beneficiary bank account in South Africa which is typically a secure trust account held by a reputable lawyer or estate agent.

It is very easy to transfer money abroad but please be aware of the costs involved in sending money to South Africa.

Costs of transferring money to South Africa

1. Transferring money through your personal bank:

The cost of transferring money to South Africa through your personal bank typically involves large transaction costs in the form of:

- transfer fees (around £20 to £30 from the UK)
- commissions
- deposit fees charged by the South African bank (typically R500)
- lower exchange rates

2. Transferring money through a money transfer service provider:

The cost of transferring money to South Africa through a money transfer service provider can involve substantial savings in the form of:

- lower transfer fees (around £10 from the UK and in some cases for FREE)
- zero commissions
- better exchange rates

Even more important than the transaction costs is the exchange rate that you will receive on your international money transfer.

This can have a huge impact on the ‘effective price’ that you are paying for your South African property.

How exchange rates affect the cost of your property

It is important to understand the impact that your quoted exchange rate has on both the ultimate cost of your South African property as well as your estimated budget.

Assume you are based in the UK and have committed to buying a house in South Africa with a value of R 2,800,000:

Cost of property in SA - R 2,800,000
Current Exchange Rate – 14.00
Total estimated GBP cost of your property = £ 200,000

Now, assume you receive the following exchange rate quotes from two different foreign exchange providers:

Bank X – 13.50
Money Transfer Provider Y – 14.00

* Please note that this is a realistic difference in the rate you will be given by a high-street bank and a money transfer service provider

The actual GBP costs of using the above two providers would be as follows:

Actual GBP cost of using Bank X = £ 207,407
Actual GBP cost of using Money Transfer Agent Y = £ 200,000

The difference between the two quotes is 50 cents which equates to a saving of £ 7,407 or R 100,000 by using the money service provider!

The other way to look at it is that is potentially costing you an extra £ 7.407 or R 100,000 to transfer your money through Bank X.

It is clear from the above that the exchange rate can have a huge effect on the ultimate cost of your South African property and it is important to ensure that you receive the very best exchange rates and lowest costs available.

So do your research and ensure that you do not have any unexpected surprises to your budget.

Click here to goto the Forex Converter.
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General Forex Tips and Advice:

• Always compare the rates offered by different banks and money transfer services to ensure that you receive the very best exchange rate possible and thus save money on your property purchase.

• Shop around asking for quotes and costs (including any hidden costs)

• Physically calculate how much you are able to save on your property purchase by receiving a favourable exchange rate. You will be surprised!

• Only use a reputable money transfer service provider who is a registered money transfer agent

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