UK Post Office launches new money transfer service

The Post Office has launched a new Overseas Property Money Transfer service which allows people to transfer money between UK and overseas bank accounts, reports The Financial Times. The article continues:

The new service enables customers to fix at a favourable rate of exchange for up to a year, giving customers protection against volatile currency fluctuations.

”Until now, many users of international bank to bank money transfer services have found it to be an expensive business, with limited options for small transfers,” said Sarah Munro, Post Office head of money transfers. “They have often been unable to capitalise on the great rates offered by currency specialists because they weren’t buying in bulk. And they were also at the mercy of volatile currency markets, making it harder to get the most from their money.”

The Post office says the service is aimed at people making repayments on a foreign mortgage, with deposits or costs associated with buying, selling or maintaining a property abroad and those paying utility bills. Other people expected to use the service are those people that are bringing money back to the UK after the sale of an overseas property, people with one off payments such as a wedding venue or emigration and those with regular payments such as transfer pensions, salaries or even school fees.

”The Post Office Overseas Property Money Transfer service offers customers the ability to fix at a competitive exchange rate, giving them peace of mind for up to a year, which is a real advantage in current markets,” said Munro. “We calculate that with 0% commission and our competitive exchange rates we will be saving customers a serious amount of money if they’ve just sold their house or are paying a deposit on a new property.”

Based on a monthly transfer of £700 over a year, the Post Office claims its new service could save customers £528 by going to the Post Office.