Transferring funds from UK

[suein56]

[quote user="La Vette"]

When I used my bank they couldn't tell me what rate I would get until the deal had gone through and ... they also charged me around £25 (should not apply now) and it took two weeks to get to my French account. 

[/quote]

Hi

I still pay my UK bank £21 to transfer money from my UK account to my French account as they are the ones who convert my ££s to euros and this, is how it was explained to me, is what I am paying for. The actual transfer comes free under the terms of the EU regulation dealing with such financial matters - as long as the total amount is not more than 50,00 euros at one time. If my French bank was an associate of my UK bank then the charge to me in the UK would only be £10.

Crucially to avoid paying even a 'token' charge to your French bank you do need to ensure you use the correct Iban etc numbers. If they still charge you 2 euro 75 then, IMHO, you should complain.

Sue - who is not always right.[:$]

 

[alnmike]

This is very interesting - CA charged me €2.75 (I think) to received a

Euro payment with full IBAN from the Netherlands this summer. When I

complained they said it was for the letter of notification. I said I

didn't want a letter as I could check online, but basically got told

'tough'.

So I shouldn't have been charged?

[pugwash]

Spg, is that  € 50.00 or  €5000, or what  ?   seems like a lot of trouble for 50

 

Pugwash

[andyh4]

It's 50 000 euros.  The poster missed a zero

However even with smaller sums the banks will need to notify the authorities it seems having just been quizzed by CA about a transfer of 20k€ into my account

[Will]

The large sum of money for your house purchase should be transferred to the notaire's account at the trésor public. That way you avoid awkward questions about money laundering or excessive charges. You will almost certainly get the best rate of exchange from one of the currency specialists, e.g. Foreign Currency Direct, HIFX etc. Do be aware though that although most of these are perfectly reputable companies they are not regulated in the same way as banks, so if you are unltra-cautious then a bank might be better for you. Another frequent difficulty is that the money, particularly when using an exchange company, may not reach the notaire's account on time, so do set things up well in advance and keep tabs on the situation. Another alternative, if time is tight, is to get a euro bank draft that you can hand to the notaire in person - probably the most reliable method, and generally at a good rate although you will probably get a bit less than through the currency specialists.

 

[Quillan]

I am almost certain that the EU rules are that it should cost you no more to transfer money from one Euro country to another than to transfer money say across the street. I buy and sell on Ebay and many people in Euroland use bank transfer. I am with Bank Populair and never get charged for these transations coming in to my account. When I send money it costs me a straight 5 Euros to any Euroland country.

My problem always comes with dealing with the UK because they don't have the Euro. When people pay their holiday deposits with us they send cash via registered mail because the transfer rates are between £20 and £25 depending on the bank used. Nobody is going to use a moneybroker for 100 Euros so the post is as good away as any and the least expensive.

I did need a large amount shipped quickly in 2005 and found that by shipping it in Sterling and letting my French bank do the conversion I got a better rate and the money arrived in my account within 48 hrs. I was also charged less than my UK bank as well but it was not as low as using a broker.

I don't want to pee on anyones parade but I totally agree with what somebody else said about bank loyalty. I am afraid it's changed completely now, managers can't make decisions it always has to be pushed upwards and most have become nothing more than keyboard bashers. The banking laws in the UK ensure that all banks operate basically the same. Having held a business account with Nat West in particular and my family having an account from before it even became Nat West I can safely say they are no better or worse than any of the rest. Younger people know this and use banks like shops, moving their money around to get the best deals and interest rates. Nat Wests TV ads always make me smile.

My French bank is quite a different story. I get good advice, I can sit down with the manager who is empowered to decide things and whilst the service is not always perfect I put this down to the fact I am dealing with humans who unlike computers can make mistakes. It took me ages to get to grip with the French system and like many Brits hated the fact that I seemed to get charged for everything, well for internet banking and my debit card anyway. Having said that I don't use the internet part I just phone my bank (my branch who know me) and do it over the phone and then sign any papers I need to when I next visit. I don't think you will find a UK bank that does this. I had a problem with my debit card and the restrictions placed on it but I would suggest that anyone who find theirs too low to go and have a chat with their branch. I didn't even have to see the manager and got mine raised to several thousand Euros per month when I first came here and its stayed the same ever since. There is no such thing as a free dinner nor is there such a thing as free banking, somebody somewhere pays somehow and with banks its the time they have your money and the time it appears on your account and the interest they get for themselves during that time.

Having said all that at the end of the day people use what they are happy with which is their right.

[suein56]

[quote user="Spg"]

- as long as the total amount is not more than 50,00 euros at one time.

[/quote]

Yes it definitely should have read 50 000 euros - apologies for the confusion. That will teach me not to post in a hurry when I really should have been out the door.

Sue - who  is not always right - and proved it this time.[:$]

Quillan said:

 ***I did need a large amount shipped quickly in 2005 and found that by shipping it in Sterling and letting my French bank do the conversion I got a better rate and the money arrived in my account within 48 hrs. I was also charged less than my UK bank as well but it was not as low as using a broker.

I am intrigued by this - anything to save some transfer costs. I am going to make some enquiries with my UK bank. Thanks.

Sue

[Will]

Quillan, I am sure that what you say is correct for the banks you deal with, and I can't really disagree with the basics, but my experiences are not the same. The euro zone is still an alien concept for most French banks: transfer of funds, or paying in cheques, from other euro countries is nowhere near the quick, simple and cheap solution that it is supposed to be. And I have yet to find a French bank where decisions can be made at branch level - they always have to be referred to regional HQ, even simple things like can we have a second card for our account.

Contrast that with my Nat West account in Britain. Well, one of the two to be exact. One is held in a branch at a town where I used to work and I guess that reflects the norm, not outstandingly  good or bad, but I can see where the 'computer says no' and similar TV jokes come from. The other, our joint account, is at a small branch, in a small town where we formerly lived, and that is very much as you describe for your French bank. Instant action, direct line that I can call the manager himself, or his assistant who is particularly helpful, on from France, easy and reliable transfers of funds to France, etc. OK, other banks may pay a bit more interest if I meet their conditions, and an exchange company may offer a slightly better euro rate, but I would willingly pay what I may be perceived as losing, or more, for the standard of service I get. 

[cooperlola]

i

[andyh4]

[quote user="Quillan"]

I am almost certain that the EU rules are that it should cost you no more to transfer money from one Euro country to another than to transfer money say across the street. I buy and sell on Ebay and many people in Euroland use bank transfer. I am with Bank Populair and never get charged for these transations coming in to my account. When I send money it costs me a straight 5 Euros to any Euroland country.

[/quote]

Absolutely correct Quillan.  EU rules dictate that bank transfers have to cost the same across EU states as they do within an EU state - for me it is 65c from Germany and 2,5€ with CA in France

[quote user="Quillan"]

My problem always comes with dealing with the UK because they don't have the Euro.

[/quote]

 

The euro is only half the problem Quillan.  UK banks rarely use bank transfers as a means of conducting business.  Consequently they can legitimately charge the earth (minimum I heard was 8 pounds with the Coop up to 25 pounds with someof the majors) and still comply with the EU regulation.  Then on the top they have the cheek to charge a very favourable (to them ) exchange rate. 

[pugwash]

My thanks to everybody that has replied and contributed to my original question "which is the best way to transfer a large sum of money for house purchase in France?". The problem is distilling an answer from the various and no doubt genuine contributions, because it really is not a lot clearer.

I would say at the moment that buying a one off deal with a "dealer" to bring in the large amount required for start up is best because although the banks are supposed to do it for the same rate as an internal transfer they may not, and they will not give me a good rate of exchange.  I then need to find a friendly French Bank, which could be a different bank in different areas although the CA seems to come reasonably well reccomended, and use the Nationwide for the day to day transfers of "running cash". Thankfully we all seem to agree on the benefits of the Nationwide system, so that I have done already. I still have to sell the Bungalow here in Devon, so at this time there is no great panic but  I think we are getting closer to an answer.

Thank you all for your help, sorry if I have directly contradicted anyone, no offence intended, Cooperlola, your participation was just too cryptic for me, I am sure the single lower case "i" is significant but I just cannot see it at the moment.[:D]

 

Pugwash

[cooperlola]

Sorry Pugwash, I posted something then realised I was covering old ground and the forum wouldn't allow me to delete the message altogether.  My mistake!