# UK pension - how to get the best exchange rate?



## Spangles 72 (Oct 30, 2013)

Hi all,

My Mum has retired over here and has her UK state pension paid into her Spanish bank account. This works well but its her only income source and ever since the £ has dropped in value money is very tight for her, and I am looking for ways to help her make the most of what she gets. I have noticed currency cards giving a better exchange rate than her bank, do you have any thoughts or suggestions on how to get the most euros for you £??

Thanks in advance.


----------



## tebo53 (Sep 18, 2014)

Spangles 72 said:


> Hi all,
> 
> My Mum has retired over here and has her UK state pension paid into her Spanish bank account. This works well but its her only income source and ever since the £ has dropped in value money is very tight for her, and I am looking for ways to help her make the most of what she gets. I have noticed currency cards giving a better exchange rate than her bank, do you have any thoughts or suggestions on how to get the most euros for you £??
> 
> Thanks in advance.


Hi,

I don't know anything about currency cards but would expect there to be extra charges somewhere.

I understand that if you have your pension paid directly into a Spanish bank you are likely to get the best rates as the transfers are done bulk.

I use Transferwise to move my money from the UK to my Spanish Sabadell account and get the interbank / internet rates. You will find a lot of posters use their favorite money transfer companies and some wait until the exchange rate is higher before they transfer extra.

I personally do not know of any scheme where you can increase the exchange rate. 

Steve


----------



## Alcalaina (Aug 6, 2010)

I don't think she will get a better exchange rate than the one the British government uses to pay our pensions directly into overseas bank accounts. I assume this is what's happening, and it's not going via a UK bank first?

The only alternative is to let it accumulate in sterling and hope the exchange rate improves, then do a bulk transfer. But this isn't practical if you need the money each month - and of course it could get worse yet!

Presumably you are looking at other ways to save money e.g. on electricity and phone/internet bills. There are often savings to be made, for example, if you consolidate your mobile, landline and ADSL into one package.


----------



## Spangles 72 (Oct 30, 2013)

Thanks for your replies everyone. It seems you are right she does get just about the best rate possible already (it goes directly from the pension people to her Spanish bank account). I was looking at her banks exchange rate V those rates offered elsewhere, but looking at the numbers she gets more than the standard advertised rate, so we cant do much more on that. We shall look at other money saving avenues!! Thanks again....


----------



## chrisnation (Mar 2, 2009)

Spangles 72 said:


> Thanks for your replies everyone. It seems you are right she does get just about the best rate possible already (it goes directly from the pension people to her Spanish bank account). I was looking at her banks exchange rate V those rates offered elsewhere, but looking at the numbers she gets more than the standard advertised rate, so we cant do much more on that. We shall look at other money saving avenues!! Thanks again....


Does her Spanish bank charge for receiving the money? If so, how much?


----------



## DonMarco (Nov 20, 2016)

If you need the money on a monthly basis then you probably won't find a cheaper way of transferring your pension. If money is that tight, how about considering halving your standing bank charges by sharing an account with someone you fully trust. My bank Santander charges 24 Euros quarterly plus 28 Euros for the card annually and thats before they deduct commission on direct debits etc.


----------



## tebo53 (Sep 18, 2014)

DonMarco said:


> If you need the money on a monthly basis then you probably won't find a cheaper way of transferring your pension. If money is that tight, how about considering halving your standing bank charges by sharing an account with someone you fully trust. My bank Santander charges 24 Euros quarterly plus 28 Euros for the card annually and thats before they deduct commission on direct debits etc.


If you have a resident 'expansion' account with Sabadell you don't pay any charges at all, not even for your card. I'm sure that Santander do something similar. If you are non-resident you will have to pay charges.

Steve


----------



## DonMarco (Nov 20, 2016)

tebo53 said:


> If you have a resident 'expansion' account with Sabadell you don't pay any charges at all, not even for your card. I'm sure that Santander do something similar. If you are non-resident you will have to pay charges.
> 
> Steve


Didn't know that. Thought everybody paid standing charges in Spain.


----------



## Lynn R (Feb 21, 2014)

DonMarco said:


> Didn't know that. Thought everybody paid standing charges in Spain.


Most of the banks (the best known ones at any rate) have accounts which don't incur charges as long as a minimum amount (usually €600-€700 per month) is paid into the account either as a salary or a pension.


----------



## tebo53 (Sep 18, 2014)

DonMarco said:


> Didn't know that. Thought everybody paid standing charges in Spain.


Nope. You need to call into your branch and enquire. You should only pay charges as a non resident. 

I pay all my bills through my expansion account and get 3% cashback.

As Lynn has stated you do have to deposit a set amount each month. Mine is €700


----------



## Alcalaina (Aug 6, 2010)

Lynn R said:


> Most of the banks (the best known ones at any rate) have accounts which don't incur charges as long as a minimum amount (usually €600-€700 per month) is paid into the account either as a salary or a pension.


Exactly. It's usually called a "cuenta nómina". My UK pension goes directly into my account with La Caixa and as long as it's more than €600 a month I don't pay any bank charges.


----------



## Lynn R (Feb 21, 2014)

Spangles 72 said:


> Hi all,
> 
> My Mum has retired over here and has her UK state pension paid into her Spanish bank account. This works well but its her only income source and ever since the £ has dropped in value money is very tight for her, and I am looking for ways to help her make the most of what she gets. I have noticed currency cards giving a better exchange rate than her bank, do you have any thoughts or suggestions on how to get the most euros for you £??
> 
> Thanks in advance.


As you give Málaga as one of your locations, I am assuming your Mum lives in Andalucia? If so, does she have a Junta de Andalucia Sesentaycinco card (for the over 65s)? This gives a range of discounts for pensioners including half price bus fares, discounts on spectacles and hearing aids, reduced entry fees to museums, galleries, concerts, etc. If she doesn't already have one she can get an application form from her nearest Pensioners' Centre (every reasonabe sized town and village has one) which she has to send off to the JdA in Sevilla with a photograph, and the card will arrive in the post.


https://www.juntadeandalucia.es/age...ogramas/taj65/ventajas/wfprogramitem_view_pub


----------

