Tips On Saving On Atm/bank Fees

[schmutzie]

I have money saved in a standard UK bank account that are meant to sustain me over the next year or so. Further income over the coming year is also likely to be paid into this account. Overall, the UK bank charges will amount to a 3% fee (I call it bank tax) on these funds.

I was even shocked to learn that over the counter purchases are now charged at £1.25 per transaction.

I have in the past seen advice on using the NationWide debit cards. Santander/Abbey now also offer a card called Zero. However, whilst cheaper, they still impose a small fee. The main problem is I do not bank with either of these and wish to maintain my current bank account as it includes a fairly generous overdraft facility that I'm keen to hang on to.

Another option would be to do a larger lump sum transfer. But then I stand to loose out on potential gains in changing exchange rates (which aren't that favourable IMHO at the moment).

Also, I have considered taking out a chunk of the savings and put them in a higher interest savings account where the funds would be come available when I need them.

In general, how do others plan access to UK funds? Any tips on off-setting the loss on fees for withdrawal and exchange, if only slightly?

[Beardog]

I think you had it right with putting a lump sum in if you plan to be up here long enough to draw funds. The price will go up & down but if you use your Thailand banks atm there is no charge(or at least with SCB) I think they all will not charge if you use their atm short of going to outlying Islands(Koh Chang ETC.) there is no 20 baht charge. Better than the $35.00 or 35 Quid each time you go to withdraw.

[bonobo]

Someone else posted that if you use your foreign ATM at a bank currency exchange, you bypass many of the fees.

I don't remember all the details, but it might be worth investigation.

 

[citizen33]

Someone else posted that if you use your foreign ATM at a bank currency exchange, you bypass many of the fees.

I don't remember all the details, but it might be worth investigation.

 

Another possibility is to open a Halifax Reward account as a second current account and transfer at least £1000 a month into it (it doesn'thave to stay there just be paid in). Halifax give you £5 per month for doing that, and the cost of one online international transfer is £9.00. I must admit that although I have been paying in money I haven't yet made any international transfers, because my present use of Thai funds isn't enough to exceed two or three ATM transfer per month (costing less than £9.00).

[schmutzie]

Someone else posted that if you use your foreign ATM at a bank currency exchange, you bypass many of the fees.

I don't remember all the details, but it might be worth investigation.

 

Sorry, I'm not sure I quite understand. What do you mean by "a bank currency exchange"?

[schmutzie]

Another possibility is to open a Halifax Reward account as a second current account and transfer at least £1000 a month into it (it doesn'thave to stay there just be paid in). Halifax give you £5 per month for doing that, and the cost of one online international transfer is £9.00. I must admit that although I have been paying in money I haven't yet made any international transfers, because my present use of Thai funds isn't enough to exceed two or three ATM transfer per month (costing less than £9.00).

I'm keen not to open any new accounts although that's an option later in the year (I would have to be in the UK to sign the paper work AFAIK)

I do have an additional UK account with a soon-to-expire debit card, which I hang on to for "plastic" backup. Also a non-UK account where I have some funds.

Hauling your savings round one way or another ends up costing. I just think the 3% is quite alarming. I guess I'm actually trying to think of a way to "off-set" that loss, without loosing flexibility (eg. a rushed exit from Thailand with funds now held in a Thai bank).

I guess it all comes down to the sums involved. Here's an example from a typical charge on a 10000 baht withdrawal (I'm limited to £200. Sadly my UK bank is not able to raise this - or it's just their usual crappy customer service a la "computer says no"):

150 baht ATM charge (approx. £3)

£3.97 UK bank/VISA charge

£5.31 ERTF charge

That's approx. £12.30 for a single transaction that I'm likely to repeat at least 5 times a month.

60 x 12.30 = £738 per year in bank charges!

Geez. I remember it being less last time I checked. I think it's time to get an SCB account a pool some money into it...

[schmutzie]

I have been following some of the tips in this article (I vaguely remember a good guide on moneyseavingexpert too)...

Moneygram need me to turn up in person, so that's a no-no.

Western Union are not competitive, really - the limit of approx. 40000 baht (£775) transfer incurs a £47 fee. Not mind-boggling.

Interchangefx seems like an option. Anyone used them? Seems like I could go for a £2-3000 transfer and pay £10 for that.

I've never used a broker like this before so a little unsure.

[FarangSerbia]

What is ERTF charge? I am coming in february first time in thailand and I was planning to use ATM's as primarly source of money, since I dont wanna have a lot of cash on me. Are you telling me I am gonna pay €10+ for every transcation I make?

[schmutzie]

(To Mods: I think this would probably have been more appropriately posted in the "jobs, banking, business" section, but not sure how to move...)

Have done the decent thing and searched the forums:

AEON ATM network is said not to charge the 150 baht fee. That's a start.

Moneybookers.com - something I'm now also looking at, along with Interchangefx

It's worth noting, that as where the intention is to save on the ATM/bank fees and charges, by doing the lump sum transfer you're exposed to loosing out (or win) on fluctuations in the Pound - Baht exchange rate: Looking at 2009, this has on average gone from 1-50 to 1-55. On average, a swing 5 baht per pound with the Pound gaining strength.

Following my own previous suggestion to transfer £2000, I'd save approx. £110 on fees assuming the exchange rate is competitive with VISA. However, if the exchange moves to 1-55 (currently getting approx. 1-52) over the 2 month window the transfer is supposed to cover, I'll have missed out on 6000 baht (could go the other way of course, which would be scary...), which in turn cancels out my savings on fees. OK, so the incremental ATM withdrawals would mean it would be a bit less than that, but still...It's not as clear cut a deal as one would expect. I guess it does allow one to plan a budget with a degree of certainty.

Am I missing something? Still inclined to go the transfer route.

At the end of the day, I could just take the ATM/bank transfer charges as a hit, worry a lot less, and concentrate/project on somehow earning that money.

[schmutzie]

What is ERTF charge? I am coming in february first time in thailand and I was planning to use ATM's as primarly source of money, since I dont wanna have a lot of cash on me. Are you telling me I am gonna pay €10+ for every transcation I make?

ERTF = Exchange Rate Transaction Fee

Usually charged as a percentage. You should check with your local bank as much of this applies to a UK resident holding funds in a UK account.

Also note that the forums hold tips on how to at least try and avoid the 150 baht ATM fee imposed by the Thai banks.

For a quick trip to Thailand I wouldn't really worry too much about this.

It's just that the fees start to stack up over say a 12 month period. Unfortunately I neglected to really plan this before departing the UK.

Edited January 13, 2010 by schmutzie

[MJo]

Well it's no rocket science.

If you want to minimize the fees open local bank account in Thailand and transfer all your money in one go.

If you want to keep some flexibility transfer every 6 or 3 or 2 months or every month. This will naturally cost you more but propably still much cheaper than using UK cards and ATM's.

And when you transfer, always send in your native currency and let them do the exchange here in Thai end. Much better rates...

[jesimps]

Three options that I can think of:

1. Open a Thai bank account and transfer a largish sum from your UK Bank every month or two.

2. Take your passport and debit card to a Thai bank and get money over the counter. No charge this end but not every bank will do it and it requires a wait while they copy passport, fill in forms etc.

3. Use Bank of Ayuthaya (yellow) ATMs, you can draw up to 10,000 baht daily without being charged this end. I'm speaking now for Pattaya, I don't know about the rest of the country.

[Chaimai]

Someone else posted that if you use your foreign ATM at a bank currency exchange, you bypass many of the fees.

I don't remember all the details, but it might be worth investigation.

Another possibility is to open a Halifax Reward account as a second current account and transfer at least £1000 a month into it (it doesn'thave to stay there just be paid in). Halifax give you £5 per month for doing that, and the cost of one online international transfer is £9.00. I must admit that although I have been paying in money I haven't yet made any international transfers, because my present use of Thai funds isn't enough to exceed two or three ATM transfer per month (costing less than £9.00).

I have been an advocate of the Halifax Reward account and have regularly made transfers to Thailand in the last year. I was therefore a little disturbed to discover this 'Important Message':-

<H1 align=center>Important Message</H1>

This site is intended for use by UK residents only. All products or other financial services accessible through this website are offered in the UK only.

If you are currently outside the UK (for example, when you are on holiday) and wish to use the service to view information about your accounts, you may do so. However, before using this site, you must ensure that you would not be breaking any laws or regulations within the jurisdiction by doing so.

You must not make any transactions or open any accounts using this site if you are outside the UK.

As it happens I think I have just successfully instructed a transfer of GBP 7,000+ - but, it may expalin why I was 'locked out' last November.