Fee-free foreign currency payments from NS&I accounts

[pomme]

I've just seen National Savings do fee-free foreign currency payments from NS&I accounts (e.g Direct Saver) to a range of countries.

See http://www.nsandi.com/international-payments-service

I'm wondering how their rate compares to other forex companies, whether you can just deposit money into a savings account and then make a transfer, etc.

Has anyone any experience of the service?

[Loiseau]

I was wondering about that, too, pomme.

One of their fliers came recently with a Premium Bond win (form an orderly queue, folks; it was for the princely sum of £25!).

I suppose it will depend on what rate of exchange they are offering on the day.

Angela

[pomme]

That was where I first came across it as well (same size prize).

They do have the current indicative daily exchange rates on the web site. But it really needs a comparison of what is available elsewhere to see how good they are. Having said that, I assume they are similar to the rate used for state pensions which always seems reasonable.

It also looks as though, if you have the necessary funds already in a saver account, the transfer is a lot quicker than most money brokers?

[Loiseau]

I usually make transfers to my Frebch account from my UK bank account, which costs £10. Maybe I should send identical sums from there, and from NS&I (where I do have a saver account), and see which turns into the most euros! Though of course one is running down the content of the NS&I saver account by so doing, and thus would lose some interest unless one tops it up again right away...

Angela

[pomme]

I don't have a NS&I saver account so can't currently try the experiment. If you do, it would be interesting to see the result.

The current interest rate on the Direct Saver account is 1.1% (but taxable in the UK or in France) so your £10 fee is the equivalent of the loss of interest on about £1000 for a year.