Due to their close proximity to Europe, travel between the UK and Italy is easy, quick and a trip that is made regularly by a lot of people. There are also a number of people who have decided to settle in the UK and Italy. As such. there is a need to make money transfers to Italy and to the UK.
Whether for investment purposes or for personal reasons, you want to ensure that you are getting the best deal out of your currency transfer. You want to find the lowest rates and fees and the best exchange rates.
With so many providers to be found online it’s much easier to be clever about how you choose your money transfer specialist. Consider your needs for making a money transfer and then compare the offerings of the providers to ensure you get the best deal for you.
There are positives and negatives about any provider and the intention of this guide is to consider a number of situations and suggest the best possible service to use to transfer your currency.
So What Is The Best Ways to Transfer Money to Italy?
If you are Moving from Italy to the UK
Every UK bank will accept money in Euros (EUR) but if you choose to use a bank for your transfer, then you are tied in with their rates. Banks will always charge high international money transfer fees and they will not offer you the best exchange rates.
Choosing to use an online money transfer service gives you a far wider choice of providers and will let you avoid higher fees.
Our Verdict: OFX offers competitive exchange rates on GBP and EUR currency transfers to Italy. They are particularly good rates for payments that are under £10,000.
Business Currency Transfers
If the business is frequently making transactions between Italy and the UK, there are a couple of things to consider.
- The Exchange Rate Margin is the difference between the rate you are offered and the wholesale exchange rate published by xe.com.
- The specific business products on offer. These could be forward exchange contracts, limit orders and foreign currency accounts.
Our Verdict: HiFX have great exchange rates and a £0 fee structure which maximizes your overseas payments. You can also set up foreign currency accounts. This lets you keep the funds in your account in a foreign currency, only converting them when the time is right.
Buying a Property in Italy
Regardless of whether you are buying your first home and moving to Italy permanently, or purchasing a property as an investment, you need to find a provider who has a strong presence in both countries. This will give you peace of mind and flexibility in what is usually a stressful time.
Our Verdict: TorFX is the obvious choice for international property transactions. It has local account managers in each country and a fully licensed global network.
Sending Money Home
Western Union, for example, are the ideal choice for sending small amounts internationally, like gift money for friends or relatives. Other companies may waive transfer fees if you are sending a large amount. Discussing your specific needs with a money transfer specialist is critical to getting the right deal for you.
Tuition fees are a cost that continues to increase year after year. The cost of some courses can add up to thousands of pounds. There are also ongoing living expenses to consider such as accommodation, food and utility bills. Not to mention, smaller payments for books and other course requirements.
If you are making a large transfer than it’s important to find a provider who gives you the best exchange rate. If it’s a smaller amount then it’s the fee that is being charged that should get more consideration.
Our Verdict: WorldFirst. A new company but one that is fast establishing itself as a great choice for students and their parents.
Ways to Send Money to Italy
The Costs of Sending Money Between the UK and Italy
Trying to figure out the complete cost of a money transfer can be difficult. It all depends on the transfer method and the fees involved; the margins aren’t always clear. To help you, we’ve compiled a list of the most common charges you’ll face when sending money from one account to another.
- The Transfer Fee – This is also called a Telegraphic Transfer (TT), a Wire Transfer or a Remittance Fee.
- Exchange Rate Margin – The difference between the rate you are getting and the wholesale rate you see on xe.com.
- Correspondent Bank Fees – The fees that your bank charges for guaranteeing your transfer gets to the right account. It is taken out when the funds arrive in the recipient’s account, it’s always very difficult to estimate it and impossible to reverse.
- Receiving Bank Fee – If you’re transferring foreign currency into an overseas bank then that bank will charge you a fee for doing so. For example, if you send Euros to a British bank account, the British bank will charge you for converting it.
What are the options?
Banks in the UK have more competitive fees and better exchange rates than most other banks around the world as there is much more competition for this kind of service in the UK. Using a bank is the fastest way to get money between accounts.
If you’re sending less than £1,000 then this is a great option. The fees will be similar to those you’ll find at a bank but the exchange rate will be better. If the person you are sending money to also has a PayPal account then the process is even more convenient.
Money Transfer Company
Money transfer companies such as HiFX and OFX are definitely the cheapest option if you are sending anything over £1,000. They offer low or no fees and the exchange rates are better. It can take a little longer to make the transfer which is a disadvantage. You’ll initially have to set up an account with them. This process can be as little as ten minutes or as long as two days depending on the company and what they need to know. When you eventually make the transfer it can also take one day longer than a bank.
How to use a Money Transfer Company (instead of a Bank)
Transferring money in this way is similar to using a bank but with a few distinct differences. Here are the basic online steps.
Setting things up (one off)
- Log in to their website and enter the details required. Make sure you have your ID available.
- Wait for account approval, you’ll then receive a login and a password.
- Ensure you have the banking details of where you are sending the money and enter them. The receiver is usually known as the ‘Recipient’ or ‘Beneficiary’.
Transferring the Money
- Advise the amount you want to send and get a quote.
- Reconfirm the details, accept the exchange rate offered to you and confirm the amount in sterling.
- You will receive a confirmation of the deal. You will pay them in sterling before the amount is sent to Italy.
Information You’ll Need Before Making Your Transfer
When sending funds overseas you will need the following information about the account you are sending to.
- Account name of the recipient
- Their address
- The SWIFT code of the bank
Banks can be picky and it is worth checking to ensure your details don’t have a digit or a letter out of place, just to ensure the process isn’t held up.
Here are a list of SWIFT codes for the larger Italian banks.
- UniCredit : UNCRITMMXXX
- Intesa Sanpaolo : FIBKITMMXXX
- Banca d’Italia : BITAITRRISS
- Depositi e Prestiti : CADPITRRXXX
How Long Does it Take to Transfer Money to Italy?
If you’re looking for speed then HSBC, Western Union and PayPal are your best options. Transfers take a matter of minutes. If you’re sending money to a bank account using a bank then the process will take 1-2 days. Using a money transfer specialist would increase the duration to 2-3 days.
To find out more on how long it takes to transfer money overseas, click here.
Is There a Minimum Transfer Amount?
Banks and PayPal do not have a minimum limit but some money transfer specialists do. Before using them make sure you check their minimum transfer amount.
Phoebe is spending a year in Rome as part of her course at a London University. The university has found accommodation in the city and the first three months rent are payable in advance as are the tuition fees for the year.
Phoebe and her parents decide to use WorldFirst. They call them to discuss a plan to transfer the large upfront payments and then arrange a schedule where regular payments can be made for Phoebe’s ongoing living expenses for the rest of the year.