TransferWise (WISE) Money Transfer | How To Use TransferWise

what's up simon here back with another video and in this video we're going to talk about transferwise which is a service that you can use to transfer money to all over the world without having to pay crazy high transfer fees for your money i'll be covering exactly how transferwise works and why they're able to offer such low prices for money transfers internationally i'm also going to show you step by step how to actually carry out an international money transfer using transfer ice on my computer so if this is the first time you're using transferwise to carry out the money transfer you can just follow along with this video and i'll show you exactly how to use transferwise and how to get the lowest fees possible for your money transfer so if you want to skip the part where i talk about how transferwise actually works and you want to go straight to the part where i explain how to carry out the money transfer step by step on my computer just hover over the progress bar of the video and click on the part that you're looking for or just go to the video description and click on the timestamp where it says how to carry out the money transfer with transferwise also if this is the first time you're actually sending money somewhere using transferwise feel free to use my personal referral link down below in the description which will get you a free money transfer up to a certain amount okay so what is transferwise and what makes a difference to the other traditional ways of sending money well the main reason people use transferwise is because you can save a lot of money on conversion fees and transfer fees for example i live in switzerland so if i want to send a thousand swiss francs to a friend who lives in the united states with a u.s bank account i would have to pay 12 more for the compared to using transferwise meaning that the amount that will actually end up in my friend's u.s bank account will be 12 less compared if i would have used transferwise the reason is because my bank charges a higher transfer fee and also exchanges my swiss francs into us dollar at a much worse exchange rate now when i increase the amount i want to send to let's say 10 000 swiss francs the difference becomes even more significant even though i have to pay a higher transfer fee using transferwise compared to my bank the transfer is still cheaper using transferwise because the exchange rate transferwise offers me to convert my swiss francs into us dollars is so much better compared to my bank that is still a lot cheaper if i were to use transferwise but now why is transferwise actually able to offer money transfers for so much cheaper than most other alternatives well the secret lies in the way transferwise actually carries out the transfer so let's go back to my initial example of sending a thousand swiss francs to a friend who lives in the united states who has a u.s bank account well what a traditional bank does is take my thousand swiss francs convert that into u.s dollars at a pretty bad exchange rate and then send that us dollars across to the united states to the u.s bank account across countries which is what makes this transfer so expensive so we have the conversion fee to actually convert the swiss francs into u.s dollars and also the transfer fee for the money going from switzerland to the united states and that's exactly where transferwise had an idea to make things a lot cheaper so they have their own bank accounts in over 50 countries worldwide in the local currency so they don't actually have to convert one currency to another and they don't have to transfer money across borders saving them a lot of fees so how this would work in my specific example of sending a thousand swiss francs to my friend in the us is that i would send my thousand swiss francs from my swiss bank account to the swiss bank account of transferwise and then what they do is they take those sound swiss francs and calculate how much us dollars those swiss francs are right now using the mid market rate which is pretty much the google exchange rate that you can just look up on google which is a lot better than what banks actually use to convert your money and then they take that amount of u.s dollars and send that from their local to the local u.s bank account of my friend in the united states so they never actually convert the swiss francs into u.s dollars and they never actually transfer money from one country to another so as long as transferwise makes sure that all of their bank accounts and all of their countries have enough funds then cheat transfers like that are possible also next to international money transfers transferwise also offers a multi-currency account and also a transferwise debit card that you can use while traveling so that you can avoid paying high conversion fees when you're paying for stuff abroad i will actually make another video specifically about those topics so you can check the description below this video and click somewhere on the top of this video right now if you want to check out that topic but now let's actually take a look at how to carry out an international money transfer using trends rice on my computer so you can see step by step how this would work again if you want you can use my personal referral link down below in the description which will give you a free money transfer up to a certain amount so let's now get onto my computer and get started okay so this is the site where you should end up on when you click on the link in the description to get a free transfer up to 600 swiss francs and if you actually just go to transferwise.com which is something you can also do then you will end up on this page here um and then you just have to start by entering the amount you want to send and also the currency you want to send in and you can um click somewhere here where it says start your transfer or or create your account or something like that and then it will be exactly the same process but most of you probably will use the link to get that free transfer or the discounted transfer depending on the amount um i'm going to start using this page here i'm going to walk you through everything from here on out and also don't worry if it says 600 swiss francs or another amount or another currency because it will just calculate whatever that amount is for your currency that you want to transfer in and then you will still get that discount or that free transfer depending on the amount so let's get started by creating our transferwise account you just have to type in your email and create a password and then type in the country that you live in and then click on claim your fee free transfer so i'm just going to quickly do that right here and then i'm going to click on claim your fee free transfer okay okay so the next page we have to decide what we want to send so how much we want to send in what currency so again i'm going to go back to my example here of sending a thousand swiss francs to united states so i'm going to choose swiss francs here and us dollars on the bottom here and you can also already select a payment method right here but you can also do that at the end where uh when we are at the at the pay option here so i'm going to cover that at the end so it it depends uh what a payment method you use also on the fees so currently the fee is five swiss francs 49 and we get a discount because um if you use the discount link you get a discount for the first 600 swiss francs and then the rest will be one swiss franc 70 for the last 400 swiss francs of the transfer if i would just type in 600 right here i would have to pay zero fees but let's go back to a thousand and then we'll see exactly the amount that will be converted which is a thousand swiss francs minus the total fees and you can also see the the conversion the exchange rate that um transferwise is using so again i said it's probably most likely very close to the google exchange rate that you simply find on google so let's actually um check if that's true so we see here 1.08861 so let's actually go to google and check what we find there so i'm gonna type in swiss francs in us dollars then type in a thousand swiss francs and we have 1.0887 compared to 1.0886 so like i said it's pretty much the google rate which is a lot better than and the rate you get with a bank that have because they have high markups okay so you also get that rate guaranteed for the next 17 hours or maybe a bit longer or less long depending on what currency what country you're in it's really uh dynamic so um but you don't have to worry that the exchange rate will actually be worse once you have started that transfer as long as you do your payment within that time frame you will actually get the conversion rate that you see here and then what's very cool with transferwise is that you will always see exactly what your fees are and how much money will end up after you transfer the money so here is exactly what my friend will see in his u.s bank account once the transfer is finished um then we also see an estimate of when the money should be there and here it says october 5th right now is first of so it says four days so over the weekend but um it probably will be there tomorrow and i'm going to show you in the next step because sometimes and adjusts that that estimation at a later step but you're going to see that okay and then i'm going to click on continue once everything's set up here and then we have to tell them if we are if this is a personal transaction a personal transfer or business transfer so in my case it's a personal transfer so i'm going to click on personal and then we have to fill out our personal details make sure you actually type in your real details otherwise you will have problems with the money transfer so i'm just going to quickly type in my details and i'm going to come back to the video okay so once you've filled in your details here just click on continue and then they ask us where we want to send the money to we can send it to ourselves so to our own bank account or to someone else or to a business or charity i want to send it to my friend so i click on someone else and then we have to enter the details of the recipient so of the friend i want to send that money to so i'm just going to enter their name here and also the country so that would be united states in my case and also um if you don't wanna or if you don't have all the details of your friend you can just type in their email address and also and then transferwise will send them an email asking them to fill out their details so you can just uncheck this box here and just type in the email address but probably most of you will actually have the the details of the person you want to send that money to so um you can just fill it out here so also i'm going to quickly do that and i can then come back to the video all right so once everything is filled out here we just click on confirm maybe it's if you have a large amount that you want to transfer like i don't know 15 000 euros or 20 000 us dollars then it might ask you for a verification so you have to uh you have to scan or you um upload your id personal id and also give them some proof of residence which is mostly like an electricity bill or a gas bill or something that shows your name on the bill so that they can actually verify that you are the person you are saying you are but if it's just like a thousand dollars or a couple of thousand it probably won't ask you for a verification so right now it didn't ask me for any verification so i'm just going to continue here the next step here is the review of details of your transfer so just um check again if everything looks good and like i said here you see it should arrive now by october 2nd so that would be already tomorrow i don't know why it said 5th of october in the beginning but um that sounds a lot better so it only takes a day to actually arrive at my friend's bank account then also if you want to type a reference for your recipient you can do that here and once you've finished everything click on confirm and continue and then we get to the next step which is the step um about how we actually pay and the payment method really decides on how many fees you will have to pay so um i would suggest you actually use just a manually a manual bank transfer because that is pretty much the cheapest option the only thing that would be cheaper is if you already have a balance on your transferwise account but as you see because this is a new account i don't have any balance on here so i can choose your balance um if you are really in a hurry and you need the money to arrive as fast as possible you can use debit card or credit card a debit card mostly is a bit cheaper than credit card and that will basically arrive immediately or in a couple of seconds if you choose that option just click on continue to payment then type in your card information and then click pay but i would suggest you just use a manual bank transfer if you're not in a hurry for the money to arrive because you'll save um you save more money on fees so i'm going to show you how it works with a manual bank transfer so we're going to choose the top option here again you see all the fees here and what will end up in the bank account of my friend and then i'm going to click on continue to payment then they ask us what bank account this money is coming from is it coming from me or is it coming from a joint account it's coming from my own account so i'm gonna click on yes i'm the account holder then we're gonna click on continue and here they ask us how we want to actually transfer the money so we're going to use online banking telephone banking or bank branch they pretty much give you the same information it doesn't matter what you choose here um the difference is that you just have to call your bank and give them the information that way if you choose telephone banking but it really doesn't matter how i do it the way it works for you just do it like that but most of you are probably gonna use the online banking option here so i'm gonna choose this and click on continue to bank details and this is where i see now the bank details of transferwise's swiss bank account again we try to avoid any trends any transfer over different countries and also any conversions so they give me their swiss bank account because i'm sending in swiss francs so what you have to do is basically take that information go to your online bank and or just log into your online banking and then carry out the payment there also make sure you use the reference here where it says um this number and just put that in the reference field of your online banking payment and that way they say it might be delayed if you don't put that that number here so just make sure to put it to avoid any delays in with your transfer but that's basically it once you have actually done your payment with your online banking you can click on i've made my bank transfer on the bottom here and then you will be redirected to your transferwise dashboard this is what you see every time you log into your new transferwise account right now so here you see all your activity and this is the transfer that we have just set up so we have just set up our transfer and now the money is on the way from my bank account to their bank account then once they receive my swiss francs they will actually give me a message and say hey we received your swiss francs we are now paying your friend from our us dollar to their u.s bank account and you can track your progress of your transfer here or you can also just check your email because they will keep you updated um by email how uh on the progress of your transfer and that's basically that's basically it that's basically how you carry out an international transfer using transferwise okay so i hope this video actually helped you out getting started with transferwise and for you to understand how transferwise actually works if it was in fact helpful make sure to give me a thumbs up on this video which really helps out my youtube channel and also if you want to see more content from me feel free to actually subscribe to my channel and hit the little notification bell next to the subscribe button so you don't miss any new videos that i put out with that being said thank you very much for watching and i look forward to seeing you in the next video [Music] you