Nedbank International Transfers & Exchange Rates

Nedbank Group is the financial services company in charge of Nedbank. The bank headquarters are in Sandton, South Africa and the company employs over 31,000 people, predominantly serving the South African region. In this bank review we will assess the quality and viability of Nedbank’s international money transfer service.

About Nedbank

Nedbank’s vision is to be the most admired African bank on the market, by focusing on delivering key financial products and expertise to families, individuals and businesses. The bank offers many of the traditional banking services you would expect from a modern establishment; this includes loans, savings accounts, money transfers, mobile banking and business accounts.

Exchange Rates and Fees

In this section we will assess the average rate of conversion for foreign exchange charged by Nedbank, along with the transfer fees that may be incurred.

Exchange Rate

Nedbank’s foreign exchange rate averages out at 3% above the mid-market rate for most currencies, which is not very competitive: find out more on the bank’s FX Rates page. The rates constantly change, so keep an eye out for when you can get the best deal. In fact, the rates are updated on this page every 15 minutes. You typically get to see the rate before having to confirm a transaction.

Transfer Fees

At Nedbank sending money internationally means executing a wire transfer. However, they come with fees that can be steep. There is a 0.66% commission applied to international transfers with a minimum of R179.01 (11.69 USD) and a maximum of R900.03 (58.813 USD)

Additional Costs

Nedbank applies an additional fee, known as a communication fee, which costs R125 (8.16 USD) per transfer. These fees begin to add up, and you will be paying, and it works out cheaper to send money overseas with dedicated transfer services like TorFX, who do not charge fees.

How Do Nedbank Transfer Fees Compare to Using a Money Transfer Provider?

Nedbank charges 3 fee types: a percentage of the transaction amount, a fixed fee and the margin on currency conversions. Overall, it will eat into a significant chunk of the transfer amount, whether it’s a small or big transfer.

Therefore, bank transfer fees are significantly higher than what you can expect to pay with a money transfer provider, who usually charge smaller percentages or a fixed fee. Services like Xe and WorldRemit will save you money in the long-term, especially if you execute multiple transactions throughout the year.

Nedbank Pros and Cons

So far we have touched on the overall cost and different types of Nedbank international transfers, but in this section we will be presenting a full list of the advantages and disadvantages of this bank service.

How to Open an Account and Transfer Money With Nedbank

Next we will run through the process of opening an account and transferring funds at Nedbank.

Opening an Account

To open a Nedbank account, you’ll need to visit the official website or download the app. On both platforms you’ll need to provide the same documentation and wait for a response from the customer service team.

To be eligible for a Nedbank bank account you must be 18 years old and have a valid South African ID. When using a smartphone you’ll need to allow the app camera access to take a picture of your face for verification. Also, you’ll be prompted to provide your phone number. Nedbank claims that the entire sign-up process can be completed within 5 minutes.

Transferring Money

The intentional money sending procedure is similar to most other banks’ wire transfer processes. Here is a step by step guide:

Additional information

• Nedbank offers 2,000 branches across 39 countries. Therefore, you can get help and use banking services while traveling.

• There is a one-touch ATM withdrawal feature via your phone and QR codes.

• Visit their blog to get educated on financial matters so you can make an informed decision.

• Use the American Express card for membership rewards from the points you earn.

What customer support options are available?

• Phonecall: For personal banking queries customers should call the bank on +2 7800 555 111

• Chat Online: The Nedbank chatbot can be found in the top right hand corner of website homepage; the bot does a good job of helping customers navigate through the vast FAQ archive

• In-person Visit: Pop into one of 2,000 Nedbank branches to speak with a customer service advisor face-to-face

Summary

Nedbank is an established South African bank that has been around for a long time. They offer a wide range of services such as traditional banking, loans and a highly rated mobile app. Furthermore, with the large branch network you can get help and execute transactions at physical locations.

However, their international money transfer service is expensive and slow. Use service providers with more specialist experience, such as TorFX and Xe to save money and transfer funds quickly. You will also save money on currency conversions since Nedbank makes a profit on the foreign exchange spread applied to international transfers.

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