Don’t send money overseas from your supermarket

You'll pay more than you need to!

If you need to send money overseas, you can now do it through your supermarket after Sainsbury's announced a new partnership with Western Union.

As a result, you'll now be able to make use of the Western Union money transfer services at 170 of Sainsbury's travel money bureaux across the UK.

But is it a good idea?

Western Union isn't cheap

Western Union is one of the dominant players when it comes to sending money overseas, 

However, it's also one of the most expensive. It doesn't actually charge a transfer fee to send money overseas, but instead offers a frankly dreadful exchange rate and pockets the difference. 

[SPOTLIGHT]For example, if I wanted to send £10,000 to America, I would get $14,958.

Let's see how badly that shapes up compared to banks and brokers.

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Transferring money with a bank

While there are plenty of banks who offer this service, it’s still pretty pricey.

Exchange rates are usually poor, often 3% less than those offered by brokers. Fees are also problematic. Some charge an excessive £10-£30 upfront fee for a transfer, bumping up your overall transfer cost.

The table below details what you'd get if you wanted to transfer £10,000 into US dollars through a handful of high street banks:

Correct on 21/05/15

As you can see, the fees are pretty substantial, not to mention the amount of time it takes to transfer. But the return is still better than with Western Union.

Save on your international money transfers with loveMONEY

Transferring money with a broker

You'll be much better off going with a broker. Moving money between countries is their entire business, rather than just one of a suite of services, so they can give you better rates and lower fees.

If you’re willing to pay more for greater rate security, there are brokers that even allow you to ‘lock-in’ an exchange rate for as long as 24 months. This is great if the current rates are good and you’re looking to emigrate in the near future.

This is what the same £10,000 transferred to the US through some of the UK's top brokers would look like:  

Correct on 21/05/15

Going through a broker means no fees, shorter transfer time and almost $600 more than with Western Union!

Save on your international money transfers with loveMONEY

More on money transfers:

How to save money on international money transfers

Banks vs brokers: the best international money transfers