Foreign Perspectives

Archive for the ‘Society’ Category

Not so long ago there were all kinds of restrictions on transferring money abroad due to currency controls that lots of countries had in place. They’re almost all gone now and it has become more of a natural thing for “ordinary people” to need to transfer money abroad.

Most of the time it’s due to holidays, of course, but an increasing number of us are becoming small scale international jet setters with homes in more than one country and with both of those come a need to transfer money abroad.

Holidays usually involve a different category of currency conversion in that you are on the spot when you need the money, the amounts involved are smaller and you probably don’t have a local bank account. However, whilst the amounts may be smaller individually, added up over the years they will come to quite a hefty sum. Also, many of those who holiday in the same country each year may be considering the purchase of a property there and so have that local account too.

Most people ignore the costs of all those international transactions to their detriment. One friend of mine found that almost 10% of his entire salary was going in such bank charges simply because he was living abroad and using his “home” account in exactly the same way that he always had ie lifting small amounts frequently.

Saving money on those transactions is usually fairly easy. If you don’t want to change your bank, check out exactly how they charge for use of credit, debit and cash cards abroad. You will usually find that debit and cash cards are more economic ways of getting cash than credit cards are in that you won’t be paying interest on the money. However, that’s not to say that they are cheap. Typically a withdrawal of £100 in the local currency will cost you £4 to £5 but note that this includes a fixed transaction charge so withdrawing £20 will cost you around £2 ie 10% whereas £200 would be about £7 ie 3.5%. You can eliminate these charges altogether with some travel money cards.

It’s slightly better if you buy things, usually. Using a typical Mastercard or Visa card will only incur the foreign exchange charge ie buying £100 of goods will cost you £2.75 and that £20 item would be 70p. Therefore you should buy things with the card directly rather than lifting the cash to pay for them.

What about larger amounts ie if you’re living abroad or have a holiday home abroad? Well, if you follow our advice and get one of the better travel money cards you can lift £500 per day which means that it’s quite viable to use that card in conjunction with a local bank account to transfer amounts equivalent to several thousand pounds. You certainly couldn’t buy a house in that way but it’s enough to fund the payments for electicity bills and the like.

If you are talking thousands, then the usual way is to ask your bank to do a SWIFT transfer. This will cost around £25 plus there’s a currency exchange charge (which isn’t widely known). However, that too can be eliminated in some circumstances. For example, if you bank with HSBC then you can do free transfers to an HSBC account elsewhere in the world but the HSBC Premier account that you need to avail of this costs £20/month (unless you have £50,000 or more on deposit with them) so it’s not as useful as it first appears. However, if you are buying in Spain, the Halifax run to a free account which offers free transfers from Halifax UK accounts to Halifax Spain ones. What’s less obvious is that this route gives you a pretty much free way from pounds sterling to euros anywhere in Europe as banks are required to transfer euros at the same level of charges in other European countries as they do domestically ie to get euros in an account in France, you could transfer from the Halifax UK to Halifax Spain and from there to a French bank.

Other options include the use of the specialised money transfer services such as HiFX (there are lots of similar services around).

We could do with an extra couple of days added on to the week at the moment.

The kids are busy with their Christmas extravaganza at the moment. I think the school were rather optimistic about the staying power of 4 to 8 year old children as they’re running four performances of it over the course of this week and after just one day our little guys were pretty worn out. It also throws up extra stuff for us to do with a performance to go to later today and needing to pick them up before lunch on Thursday.

Friday will be even busier with Mum to be taken to the performance for the elderly in the morning, the Kip McGrath class just after school, immediately after that John has a party to go to and then just after that we’re off to a BBQ thing at the church. Yeah, I know, it’s not BBQ weather at the moment so we’re not 100% sure about going to that.

Next week is looking quite busy too with our first free slot not coming up until Thursday!

What is with this country? The second busiest airport in the country is closed, trains are stranded and thousands of people can’t get out of their houses. All because of a relatively small amount of snow.

What on earth would it be like if there was another mini iceage like they had in the 1800s when the Thames was regularly frozen?

Ironically, it would probably be a whole lot easier going. The reason for many of the problems this year is simply that the UK as a whole simply isn’t prepared for really cold weather. Were it to be a regular feature of our climate then more money would be thrown at the problem and many of the difficulties that we’re currently experiencing would go away. After all, colder countries don’t have all these issues.

We were tootling along quite nicely with our various regular activities until a week or two back but now it’s getting to the point that we can barely fit everything in.

It’s mainly down to the Christmas activities that the school seem to be throwing at us almost daily which are difficult to fit into what was already a reasonably full though doable schedule. Thus we have school photos to deal with, school calendars to come in the next day or two, the school Christmas fair this week, the school play next week, the school Christmas pantomime the following week and, no doubt, many more Christmasy things that we’ve forgotten or not been told about yet.

Naturally, there are also things like Christmas cards to write, Christmas presents to be bought, the Christmas markets to be seen and lots more besides.

And, of course, there are the non-Christmas things to be done which, for me, seems to be largely taken up with assorted course assignments though there’s lots of non-course things to be done too.

We signed up again for Fitness First again way back at the start of August when they’d one of their offers running… “sign up for BodyFirst, get three free personal trainer sessions by paying £35 now and you’ll get it refunded after 20 sessions”. Well, that’s what we were told at the time anyway.

It turns out that we should have been given a card to stamp for each of those 20 sessions which presumably lists a couple of extra conditions that we weren’t told about. First, those 20 sessions had to be taken within 8 weeks of signing up. That shouldn’t be a problem as we were attending 4 or 5 times a week so those 20 sessions were completed in late August or possibly early September. Except that 1) we didn’t have that card to get stamped, 2) their computer was down quite a bit towards the end of August so our attendance wasn’t recorded and 3) it’s quite common to get waved through without the membership card getting swiped. Net effect of that was that we have only 16 recorded attendances in the 8 weeks ie they swiped the card just twice a week on average.

Second problem was those “free personal trainer” sessions. It seems that they weren’t optional as, presumably was stated on the card which we didn’t get, not doing them within the 8 weeks means no refund of the £35. On that particular point, we were explicitly told by the membership guy at the time that we could take them at any time so I guess he doesn’t read the contracts that he’s signing people up to.

I’d say at this point that it was important to read all the conditions of a contract with Fitness First but seeing as we weren’t given the contract, we couldn’t do that.