SWIFT is a safe and standard way of sending or receiving money from banks all over the world.
SWIFT is a messaging system for banks from all over the world, it links up banks by using standardised codes for the payments.
SWIFT stands for Society for Worldwide Interbank Financial Telecommunications, they have been around since the 1970s.
11,000 financial institutions over 200 countries are using SWIFT.
To send money via SWIFT you need:
The SWIFT code itself identifies the bank whereas the IBAN code is longer and it identifies a specific bank account.
SWIFT codes can also go by BIC codes, they are widely available as they are not personal so you can find them online.
The best way to find them is on the bank’s website.
You need the SWIFT code for the receiving bank not the sending bank.
IBAN codes are longer than SWIFT codes as they include specific account details.
IBANs can be anything from 16 to 32 characters depending on what country you are looking at.
Money transfer companies can assist you with all this information.
The timeframe can vary depending on the time zones, different destinations and the banks.
SWIFT payments generally take 1 to 4 working days.
Before the funds arrive in the recipient's bank account it will go through some mandatory checks that are anti-money laundering and anti-fraud, this can slow the process down.
If there is no relationship between the sending and receiving bank then this can slow the process down too!
The costs vary depending on what bank or money transfer specialist you use.
There are normally two costs and these are:
Banks and money transfer specialists will charge you a combination of fees and exchange rates.
There are four simple steps for SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfers and they are: identity check, get an exchange rate, make your payment and finally the money is sent.
Identity check. In line with the Anti-Money Laundering (AML) Regulations, all international wire and SWIFT transactions are subject to identity checks. This is to protect you and the sender from falling foul of organised crime and to ensure your SWIFT money transfer ends up where you intended.
Exchange rate. At Regency FX we will ensure you get the best exchange rates possible on the proposed date you are sending money to the UK. Because we carry out many SWIFT transactions every day you can be sure the very best rates are secured for your UK bank transfer.
Make your payment. To send money to the UK, simply complete the details of your UK bank transfer and the money is sent to the intended UK recipient.
SWIFT Money Transfer System Explained
SWIFT, or Society for Worldwide Interbank Financial Telecommunication, is an international wire transfer system which has been around since the 1970s. You will need your bank’s international SWIFT code which can be found using a quick online search.
SWIFT fees are fixed for each amount sent and vary between banks.
Typically, using a SWIFT money transfer system will see your money transferred in one to four working days.
Many people know about the transfer fees but they forget about the exchange rates.
Exchange rates are not a standard rate.
They vary depending on what bank or money transfer company you use.
A small change can affect the exchange rates massively.
UK banks do not offer competitive rates.
Some people are not aware of what they have even been charged for by their bank for a SWIFT transfer.
The big banks charge 3-5% in exchange rate costs on a SWIFT transfer.
It also depends on the amount of money you are sending, usually the larger the amount of money, the better the rate is.
Exchange rates tend to be more costly than the transfer fees.
For example, with a SWIFT transfer of £240,000, if the bank had a 3% exchange rate margin, then you will be charged £7,200 off the exchange rate.
That is a lot of money to be paying in costs!
Banks will not help and guide you with a SWIFT transfer.
As the rates are changing constantly, choosing the right time to make the transfer can be very important.
Many money transfer companies will help you pick the right time and let you know what is happening and if the rate moves in your favour.
The better the exchange rate, the more money you will have in your pocket.
The large UK banks can charge a whole combination of fees, the more common fees that they charge are transfer fees and recipient fees.
These are normally fixed fees for every SWIFT transfer.
Below I will show you the fees charged by the UK’s big banks:
NatWest charge £15 under £5,000 or 0.3% (maximum £40) over £5,000 and the receiver is also charged at £7.50.
HSBC charge £4 online or £9 in a branch, the recipient is charged £8.
Barclays charge £25 if you use a branch or free online. The recipient is charged £6.
Lloyds charge £9.50 online or in a branch, the recipient is charged £12.
If you wish to speed the payment process up then there will be additional fees!
Many money transfer companies do not charge any fees for SWIFT transfers.
SWIFT is a very safe and reliable network that has been used for the last 40 years. Roughly, half of all overseas payments international use SWIFT.
SWIFT itself does not handle the money, your bank or money transfer company will do that part; they are just a way of communication between accounts.
You should ensure that the company you use to transfer the money are regulated by the FCA (Financial Conduct Authority).
If they are regulated by the FCA it means that they are required to keep your funds separate from the company funds and in a safeguarded client account that is only used for customers transactions.
You can type a company’s name in the FCA register online to check to see if they are regulated.
Regency FX are a UK based independent currency broker, specialising in high volume transfers.
We pride ourselves on our premium level of customer service, you will be allocated your own personal account manager whom you will have direct access to.
All funds transferred through Regency FX are made using client segregated accounts in accordance with the FCA (Financial Conduct Authority) guidelines.
The important thing is the comparison, online rates shown on Google and other search engines are not always accurate for the consumer.
They can often refer to the rates that banks exchange at rather than what is available to you, the customer.
Even if you are just looking for property at this stage it is worth getting in touch to discuss your options.
We can monitor the market on your behalf enabling you to budget more effectively.
As a first-class currency transfer service, here at Regency FX we endeavour to get the best available rate regardless of how much you are transacting.
Get a quote and see how we stack up.
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