Finweek English Edition - - MONEY -

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.

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