Bendigo International Transfers
Bendigo Bank has proclaimed itself as the “only credible challenger to the major Australian banks.”
With that in mind, some of its 2.5 million customers might wonder: is Bendigo a smarter choice than Australia’s big banks for international money transfers?
In this guide, we’ll simplify the process of sending money abroad with Bendigo, cutting through the often unnecessary confusion.
We’ll highlight all the key information that’s typically buried in the fine print and present it to you in clear, concise terms.
By the end, you’ll understand how Bendigo’s rates, fees, limits, and service compare to other providers, giving you a clear idea of whether Bendigo is the right choice for your international money transfers.
How much does it cost to make international transfers with bendigo?
Whether it’s a bank or money transfer company you choose to send money overseas, the types of cost you need to look out for are:
- Transfer fees
- Exchange rate markup
Let’s dive into each of these and look specifically at Bendigo’s charges.
Bendigo transfer fees
Bendigo charges a flat AU$30 fee for all outgoing international payments.
But, their online currency converter fails to disclose this fee. Slightly misleading from a firm that’s been voted ‘Australia’s most trusted bank’.
They also state that intermediary and beneficiary banks may deduct additional fees, but unlike some banks, Bendigo will not cover any of these costs.
There’s also a AU$10 fee for international payments received in a foreign currency, which drops to just AU$2 for payments received in Australian dollars.
In our opinion, both these transfer fees are unnecessary. Most providers, including banks, make the majority of their profit in the currency exchange.
Bendigo exchange rates
Despite Bendigo and other bank’s steep fee structures, the greatest cost involved in international money transfers is in the markup included within the exchange rate itself.
Banks purchase foreign currency at the ‘interbank exchange rate’ but will sell that currency to you for a worse rate, with the difference equalling what’s known as the ‘fx markup’ or ‘margin’.
Put simply, the higher the margin, the more banks profit.
However, the fx margin is never publicly advertised, so you’ll need to work this out to know the true cost of your international transfer.
In this instance, we’ve saved you the time, so take a look below at some of Bendigo’s fx margins based on sample transfers in common currencies:
| Currency Pair | FX Margin |
|---|---|
| AUD to GBP | 5.73% |
| AUD to USD | 5.70% |
| AUD to CAD | 5.47% |
| AUD to EUR | 5.61% |
| AUD to NZD | 4.71% |
The verdict is clear: Bendigo’s exchange rates are extremely poor, even by Australian bank standards, who are renowned for notoriously bad exchange rates.
If ‘fx margins’ are a new concept to you, let’s look at what this fx margin equals in dollars and cents.
Say you’re converting AU$50,000 to GBP for a payment to the UK, an fx margin of 5.73% will cost you AU$2,865.
Like we said, this is by far the biggest cost associated with foreign exchange and dwarfs the previously mentioned transfer fees.
Interestingly, the Bendigo currency calculator only provides a flat exchange rate, irrespective of the transfer total, suggesting you’re unlikely to secure a better rate for larger transfers.
An average fx margin between 4.5%-5.75% is extremely high, but given most Australian banks fall into a similar region of 2.5-5%, you’re likely left wondering what your alternatives are?
How do Bendigo’s costs compare to other providers?
The simple truth for providers like Bendigo, or any Australian bank for that matter, is they simply don’t compete with alternative money transfer providers on cost.
It’s not even close!
Many leading currency brokers do not publish their exchange rates, but we can take insight from the thousands of verified reviews, where many customers highlight how much they’ve saved.
Take a look at how Bendigo’s average rate compares to the guideline margins from two leading currency brokers.
Whilst these are only guidelines, the fact that you stand to save a minimum of 2-3% is huge!
As we’ve already demonstrated, a few percent can often equate to several thousand dollars.
Customers using a leading currency broker to transfer large amounts into a common currency have been known to secure margins as low as 0.2%
That’s essentially 20 times cheaper than the average Bendigo margin for common currencies.
Just remember that many different factors affect what rate a specialist provider can offer you, so someone making a one off transfer into an exotic currency should expect a completely different fx margin to a customer making large and regular transfers into a common currency.
The best way to compare Bendigo’s costs with leading alternatives is by signing up with a currency broker like OFX or TorFX and speak to your account manager about your requirements so they can provide you with a bespoke rate.
How long do Bendigo international money transfers take?
Bendigo does not provide any details for how long their international transfers take.
It’s also the only type of transfer that doesn’t have specific cut-off times listed on its website.
Seeing as Bendigo has clearly invested time into producing other international transfer content, the fact they’re so vague regarding delivery times suggests this is not a key selling point.
They’re also very open about the likelihood of having to pay handling or acceptance fees to one or several intermediary banks, which might indicate that they’ve not established great payment networks.
This is an important consideration as the more intermediary banks that your funds pass through before reaching its destination, the more you should expect potential delays.
Can you make international transfers using the Bendigo app?
Yes, although you won’t have immediate access to Bendigo’s ‘Telegraphic Transfer service’.
You’ll first need to register over the phone or in a branch, after which you’ll be able to find this feature under the ‘Move Money’ section of the app.
From there, sending money overseas with Bendigo is a pretty smooth process, as the app provides a specific list of the recipient details required, based on destination country and transfer type.
Once you’ve made your payment, you can instantly generate a receipt that can be sent to an email recipient of your choice in a few clicks.
It is worth noting that the Bendigo app has one of the worst rated apps for any bank or money service provider that we’ve reviewed at MoneyTransferAustralia.
Its average rating across the App Store and Google Play is just 3.2 out of 5 stars, far below the industry average.
What is the maximum amount I can transfer internationally with Bendigo?
If you register for international transfers over the phone, the maximum you can set your daily transaction limit to is AU$30,000.
The only way to increase this daily limit is to complete a form in your local branch, but it’s not clear what the upper limit is for those who do so.
This is a higher daily limit than most of Australia’s big four banks, only ANZ offers more with a limit of AU$50,000.
However, seeing as many specialist international money transfer providers do not have any maximum limits, a maximum limit of AU$30,000 is considered very low by industry standards.
Is Bendigo a good option for international money transfers?
At a glance, Bendigo might seem like a good option, seeing as they have a couple of pages dedicated to international money transfers that promote ‘quick and secure payments’.
They even include a live currency calculator, which helps give the impression of transparency, perhaps to suggest they’re a cost effective choice.
However, you need only assess the true cost and availability of their service, and you can quickly conclude that Bendigo is not a good option for international money transfers.
Far from it.
On average, Australian banks are one of the most expensive options for sending money abroad, and Bendigo is the most expensive bank that we’ve reviewed so far.
High fees aside, Bendigo’s exchange rate includes such a high markup to the mid-market rate, that you stand to potentially lose thousands if you choose Bendigo rather than a leading bank alternative.
Not only that, Bendigo is not clear about its transfer limits or delivery speed, so as well as overpaying, you’d also potentially be getting a sub-par service.
Leading currency brokers like OFX and TorFX consistently offer fast and secure transfers, with zero fees and very competitive exchange rates.
Which is why in most instances, they’re the smart choice for international money transfers.
They’ll also usually provide you with a dedicated account manager and access to additional fx tools, helping you get the most out of every overseas transfer.
Those looking to only make smaller transfers, say less than AU$20,000, might find better value from digital money transfer apps such as Wise, as they offer a streamlined service that often means they’re the most cost effective choice for small international transfers.