Making Money Inland Cheaply

Old problem of how you can change money for cheap. Since the introduction of the transaction tax, one withdrawal will cost at least 0.6%, the street money exchange the other 0.3% plus the benefit of the bill. (Although the transaction tax is at least maximized when switching.)

To make matters worse, you should only switch money at a less favorable exchange rate with your bank and then transfer or buy the currency for another serious expense.

That is, a simple money exchange can hardly get under 2-2.5%

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If you go abroad for money, Transferwise has been the solution since you got away with the 0.5% deposit and even exchanged money at the central rate, so you won’t fail. (Read more here and here If you don’t already know how Transferwise works, you may want to read the articles so you can understand what it is all about.)

But what if you want to redeem your money from your forint account to your dollar or euro account at home? You might have a forint, but you want to transfer a dollar to your security account so that the brokerage firm does not exchange you money at a steep exchange rate?

I have heard a rumor that nowadays

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It is no longer an expectation for Transferwise to have two accounts in two different countries, within the country they are silently exchanging money between two domestic accounts in exchange for the usual 0.5%. (Which is much more favorable than you would normally switch for)

Since this is an important question, I thought to ask Transferwise if it really is possible.

Another problem was whether the notices could be handled by Transferwise? This is important because, for example, you want to transfer a euro to your brokerage firm, where you need the notice, or you would transfer a euro to your treasury to start from your forint account.

I also asked this. Also, when I write, is there anything new (let’s just refer to Egypt or something similar).

The following response was sent

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1. Yes, as long as there is a currency conversion involved and we support the currencies and direction, we can process the transfer, even if the sender’s and recipient’s bank account is in the same country. As we process the EUR and HUF in both directions we can process the payment from a EUR denominated bank account in Hungary to another HUF denominated bank account also in Hungary.

2. As regards sending messages with a transfer, it all depends on the maximum number of characters allowed for the currency. For both EUR and HUF the limit is 35 numerical figures / English letters.

So yes, you may be transferring money from your dollar account to the forint within the country, or vice versa, or your brokerage firm, not to convert your money to the euro at 3% cost, or by arranging a company account within the country.

In fact, even the bulletin is reportedly up to 35 characters long, which can be important, say, at the Treasury, where the money goes to a central bank account and the bulletin tells who sent it.