TSB international transfer: Fees, Time and Exchange Rates

If you bank with TSB in the UK and need to send money overseas, you might be wondering about the costs and processes for sending an international payment with TSB. This guide has you covered with all you need to know about TSB fees, rates, delivery times and more.

TSB has been serving UK customers for some 200 years - and today has over 5 million account holders. However, if you need to send a payment overseas, TSB isn't necessarily your best option. Specialist services like Wise or OFX are fast and easy to use - and could make your transfer cheaper.

TSB international money transfer comparison

Let’s take a look at the fees which are important when sending an international transfer. You might run into a few different costs - some of which are easy to spot, and some of which may come as an unpleasant surprise. Here’s what you need to watch out for:

• Transfer fee - this may be low, or free - and can vary based on how you arrange your payment

• Exchange rate markup - this can be the highest fee, but it’s often hard to see

• Correspondent bank fees - these fees go to intermediaries involved in the transfer process

We’ll walk through these costs one by one in just a moment. First, let’s take a look at a comparison of the costs and delivery times for sending an international transfer with TSB compared to some specialist providers. Here we’ll use the fees that would apply for a payment of 1,000 GBP to a friend in France, made online and to be received directly into the French euro bank account.

*Fees and exchange rates correct at time of research - 7th June 2022

https://www.tsb.co.uk/help/internet-banking/international-payments/

https://www.westernunion.com/gb/en/frequently-asked-questions/faq-send-money-online.html#Q2

https://www.ofx.com/en-gb/faqs/how-long-will-my-transfer-take/

The final costs for your TSB international transfer will depend on where you’re sending money to, and how you set up your payment. As well as any upfront transfer fee, you may pay a correspondent fee of 6 GBP. This cost can be passed onto your recipient in some cases, instead of you covering the charge. Other fees may also be deducted by intermediaries or your recipient’s own bank as the payment is processed.

You’ll see the exchange rate being offered by TSB when you arrange your payment online or in a branch. It’s good to know that bank exchange rates usually include a markup - a percentage fee added to the mid-market exchange rate. This is commonly around 3%, which doesn't sound huge, but does mean you’re paying more than you think for your transfer.

Compare TSB with some alternatives, to see if you can get a lower overall fee and a faster delivery time with a specialist money transfer service. Services like Wise use the mid-market exchange rate with no markups, making it far easier to see the true cost of your transfer in advance. Specialist money transfer services are secure and simple to use, and you can usually transact 24/7 online and through mobile apps.

TSB international transfer fees

The final costs of your payment with TSB will depend on where you’re sending money to and how you arrange your transfer. Some accounts have slightly different fees, so it’s worth checking your own account terms and conditions before you get started. Here’s a rundown:

TSB exchange rate

When you send a payment from a TSB account that’s held in pounds, to an account in a different currency, TSB will exchange currencies as part of the transfer, using the live TSB exchange rate on the day. You’ll be able to see the exchange rate that’ll apply online - or if you’re making the payment in a branch, you’ll be notified by the service staff.

It’s important to note that bank exchange rates tend to include a markup, which is an extra fee, often of around 3%. That might not seem like a lot, but it soon adds up, and can be far more than any other charge involved in moving money across borders.  Here’s how the fee would stack up with a 3% margin used for different transfer values:

• Sending 1,000 GBP - the exchange rate markup adds 30 GBP to the total

• Sending 5,000 GBP - the exchange rate markup adds 150 GBP to the total

• Sending 50,000 GBP - the exchange rate markup adds 1,500 GBP to the total

Here’s a reminder of the total costs - including exchange rate markups - from the providers we looked at earlier. This is what you’ll pay with each if you set up your payment online and send 1,000 GBP to a euro denominated account:

• TSB: No transfer fee, but exchange rate margin applies + relevant intermediary bank fees

• Wise: 4.28 GBP

• OFX: No transfer fee, but exchange rate margin applies

TSB additional fees

Bank international transfers are usually processed through the SWIFT payment network. This is a reliable, but fairly expensive way to move money internationally, and can result in surprise fees. In the SWIFT system, your money will be moved through 1 - 3 intermediaries known as correspondent banks, on the way to the destination account. While you’ll pay any charges TSB levies on your transfer, these intermediaries may also deduct fees from the amount being transferred, to cover their costs and charges. This can mean your recipient gets less than you expect in the end.

You can sometimes opt to pay all SWIFT charges yourself if you arrange your transfer by phone or in a branch - but higher transfer fees may apply in this case. Alternatively, pick a specialist provider which avoids the SWIFT network and its costs - like Wise. Your money might arrive faster, and you’ll be sure there are no surprise fees to worry about.

How long does a TSB international money transfer take

How long it takes for your money to arrive with TSB will depend on where your payment is headed, and whether you hit the cut off times on the day you initiate the transfer. Here are the anticipated delivery times assuming you meet the cut off on the day you set up your transfer:

The cut off time for sending a payment is 4:30pm. If you arrange your transfer after this - or at a weekend or public holiday - your transfer will start to be processed on the next working day.

Here’s a reminder of the delivery times for international transfers from TSB and a few other providers:

• TSB: Up to 12 working days depending on the destination country

• Wise: 80% of payments arrive in 24 hours

• Western Union: Up to 2 days

• OFX: 1 - 2 business days

Pros and cons of transferring money abroad with TSB

Pros:

• Safe, familiar and reliable service

• Arrange online, by phone or in a branch

• No upfront fee for euro transfers to the EU and EEA

Cons:

• Exchange rates may include a markup

• Delivery times can be high when sending to anywhere other than the EU and EEA

• High fees for in branch and telephone transfers

• Correspondent fees may apply - and can not always be known in advance

In many cases, you’ll get a better exchange rate and a lower overall cost if you choose a specialist provider for your payment, instead of relying on your regular bank.

How to make an international transfer with TSB

Send a payment in branch, by phone, online or in TSB’s mobile banking service. Sending a payment online or using your smartphone is usually cheapest and most convenient. You’ll need to:

• Log into your online banking

• Navigate to the payments section

• Follow the prompts to add the currency and amount you want to send

• Check the rates and fees

• Enter your recipient’s details

• Confirm and your payment will be on its way

What information do you need to make an international transfer with TSB?

You’ll need to provide TSB with:

• the full name and address of the person you want to pay

• the name and address of the bank of the person you want to pay

• the International Bank Account Number (IBAN)

• the Bank Identifier Code (BIC)

Transfer limits and available countries

You can send up to 75,000 GBP from any one account in any one day. That means that if you have a joint account your daily limit remains at 75,000 GBP - the same as for individual account customers.

TSB international payments can be sent to a broad range of countries and currencies. Log into yout online or mobile banking service to get a full rundown of the available countries and currencies for your account type.

Receiving money from abroad with TSB

If you’re expecting a payment from overseas to your TSB account you’ll need to give the sender your account information to make sure the transfer arrives safely. Usually, this will mean passing on:

• Your full name as shown on your account

• Your IBAN

• The SWIFT/BIC code for your account

Once your payment is on its way you won’t need to take any action - the money will be deposited into your TSB bank account when it’s cleared. However, there may be a fee to pay when you get your transfer, depending on the currency:

• No fee to receive euros

• Non-euro payments under 100 GBP value - 2 GBP fee

• Non-euro payments  over 100 GBP value - 7 GBP fee

TSB SWIFT code

It’s important to give the sender the correct SWIFT/BIC code if you’re expecting a foreign transfer. This is like a postcode for international payments and makes sure your money arrives at the right destination bank, even from the other side of the world. Giving the wrong SWIFT can mean your transfer is delayed or rejected. Here’s what you need:

• The TSB SWIFT code is TSBSGB2A

Conclusion

Using your regular bank for an international transfer might seem like the obvious option, but it can work out pretty costly and slow. While some international payments with TSB don’t have an upfront transfer fee - or may come with fairly low transfer charges - you’ll need to bear in mind the exchange rates and intermediary fees which can push up overall costs significantly. Because banks add a markup to their exchange rates, you could end up paying more than you expect - and if SWIFT fees are deducted as the transfer is processed, your recipient could end up with less than you anticipate, too.

Compare the costs of TSB international transfers against the fees, rates and delivery times offered by international transfer specialists like Wise to see if you could save. Specialist services are usually very easy to use, online or through an app - and can mean a better rate, lower fee, and faster payment time, too.