We helped a client transfer his R4m annual allowance to New Zealand. At the time of the transaction, the spot rate in the market was R7.33 (not really a true indication of the rate as it is not available to smaller users like you and me). At the time, Standard Bank was offering a rate of R7.69/NZ$ – that’s 5% higher than the spot rate and a difference of more than R25 500 on the R4m transaction. With a bit of intervention on our part by using a different forex dealer we were able to secure a rate of just under R7.36 – still R23 000 better than the “bank rate”.
So remember, banks are there to make money from you and me – we need to make sure that in the process we are getting maximum value for minimum buck. If not, it’s time to change banks. Gregg Sneddon is a certified financial planner with The Financial Coach in Cape Town.