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SumDumJoe

USAA Wire vs Transferwise

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SumDumJoe

 I decided to roll the dice and try out Transferwise. I was really getting tired of USAA ripping me off on the exchange rate. I love USAA for everything else, but as you can see they are brutal on their rates. 

 Both services delivered in about the same time frame. The big difference was in the total fees section. USAA cost with the forex difference a whooping $167.19. I actually made a little money with Transferwise as they lock you into the rate when you finalize the transfer. I was locked in at 49.98 and the final rate of the day was slightly lower at 49.74. Just plain dumb luck that worked in my favor for once. 

 I did have to give Transferwise my log in and password for the account that was funding the transfer. That did and does still worry me a bit. I have full faith and trust in USAA  however, Transferwise based in Estonia, not so much. 

 If I had it to do again, I would set up an account specifically for these types of transfers. Then I would fund it with just enough to cover the transfer. That way if they do decide to use my login and password for nefarious purposes, there would be next to nothing there.

I would also have sent my wife 5049.50 to make the numbers come out even. I didn't know Transferwise would deduct the fee from the transfer amount, I assumed wrongly that it would be added as a separate line item. 

 Overall though, I am very happy with Transferwise. I will more than likely use them again in the future.

 

post-17254-0-01472800-1483179294_thumb.jpg

 I attached the simple sheet I made up to do some of the math for me. You can play around with it if you like. If you change the rate given or the XE rate it will show you what you will receive and what you should have received and the difference between the two. The total fees will not change as I did not build a formula into that cell. 

 

xfer.xlsx

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senseless

Do those rates scale or are they flat rate? I just sent over $3,000 wire from my chase account -- received $3,000 USD in my wife's local BPI USD account and was charged $40 to send. $5 is $5! :D

Edited by senseless

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TheWhiteKnight

 I decided to roll the dice and try out Transferwise. I was really getting tired of USAA ripping me off on the exchange rate. I love USAA for everything else, but as you can see they are brutal on their rates. 

 Both services delivered in about the same time frame. The big difference was in the total fees section. USAA cost with the forex difference a whooping $167.19. I actually made a little money with Transferwise as they lock you into the rate when you finalize the transfer. I was locked in at 49.98 and the final rate of the day was slightly lower at 49.74. Just plain dumb luck that worked in my favor for once. 

 I did have to give Transferwise my log in and password for the account that was funding the transfer. That did and does still worry me a bit. I have full faith and trust in USAA  however, Transferwise based in Estonia, not so much. 

 If I had it to do again, I would set up an account specifically for these types of transfers. Then I would fund it with just enough to cover the transfer. That way if they do decide to use my login and password for nefarious purposes, there would be next to nothing there.

I would also have sent my wife 5049.50 to make the numbers come out even. I didn't know Transferwise would deduct the fee from the transfer amount, I assumed wrongly that it would be added as a separate line item. 

 Overall though, I am very happy with Transferwise. I will more than likely use them again in the future.

 

attachicon.gifxfer1.JPG

 I attached the simple sheet I made up to do some of the math for me. You can play around with it if you like. If you change the rate given or the XE rate it will show you what you will receive and what you should have received and the difference between the two. The total fees will not change as I did not build a formula into that cell. 

 

attachicon.gifxfer.xlsx

 

TransferWise worked great for me. I used it once, right in to my BPI account for some bill pay.

 

Don't worry about your password man, those systems aren't even exposing your password directly to TW as far as I can tell. It's an API.

Edited by TheWhiteKnight

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senseless

Hold on bro you are comparing 2 month difference in the exchange rate. The peso got way weaker in that time, right (maybe not)? a true test would be sent at the same time.

 

He's looking at the difference between rate given and exchange rate for the day. A lot of institutions will give bad exchange rates to take a greater fee. In his case, it appears his bank has a 1.18P/1USD spread. For every $1 he sent his bank was making $0.025 -- over his entire send of $5000 his bank made $122 because of their given XE rate vs actual market XE rate. Some places are able to offer better rates than others. Banks traditionally have the worst spread in my experience than all other institutions.

 

Probably more data is needed. I'm not sure how transferwise would be able to give better than market exchange rates. They would be losing money on the transfer.

Edited by senseless

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TheWhiteKnight

He's looking at the difference between rate given and exchange rate for the day. A lot of institutions will give bad exchange rates to take a greater fee. In his case, it appears his bank has a 1.18P/1USD spread. For every $1 he sent his bank was making $0.025 -- over his entire send of $5000 his bank made $122 because of their given XE rate vs actual market XE rate. Some places are able to offer better rates than others. Banks traditionally have the worst spread in my experience than all other institutions.

 

Probably more data is needed. I'm not sure how transferwise would be able to give better than market exchange rates. They would be losing money on the transfer.

 

 

Haha yeah I realized I was wrong and edited almost instantly.

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SumDumJoe

Do those rates scale or are they flat rate? I just sent over $3,000 wire from my chase account -- received $3,000 USD in my wife's local BPI USD account and was charged $40 to send. $5 is $5! :D

 

 The fee from USAA is fixed. I believe it's 20 dollars to USAA and 25 dollars to the Bank of New York, or vice versa.

 The fee from Transferwise scales and I think it's set at one percent.

 I don't know if they would do a dollar to dollar transfer though, like the one you did. 

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Salty Dog

When I used my USAA ATM card in the Philippines to withdraw money, the exchange rate was whatever the listed rate was. USAA didn't seem to even charge a single centavo more or less.

 

Sent from my SM-T817V using Tapatalk

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TheWhiteKnight

When I used my USAA ATM card in the Philippines to withdraw money, the exchange rate was whatever the listed rate was. USAA didn't seem to even charge a single centavo more or less.

 

Sent from my SM-T817V using Tapatalk

 

They do. They charge 1% Visa Mastercard Fee (and its not always apparent until the transaction settles).

Schwab, Fidelity, and State Farm bank give you the exact and refund all ATM fees. USAA still not too bad.

 

 

Transactions at ATMs located outside of the United States may not be eligible for ATM usage fee refunds. A 1% foreign transaction fee applies to withdrawals outside the United States. No ATM usage fees will be charged at USAA Preferred ATMs pursuant to an agreement with the ATM network/owners to not charge an ATM fee for USAA Bank ATM Debit cards."

 

https://communities.usaa.com/t5/Bank-Services/International-ATM-Fees/td-p/82701

Edited by TheWhiteKnight

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tonny

If i use HSBC ATM machine no worries and for 40,000 P cost about $8bucks,  so twice a month only $16  not to bad and there rate lately has been over 49.65 i think.Wish they would give 80,000 but i am sure that never happen. I could never figure out why the where so generous, but maybe they can make more on volume versus all the other banks expensive rates for only 10 to 20  thousand?? As a lot of busy weekends there out of money on the thousand peso note ATM machine ,bye Sunday morning

Edited by tonny

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