Cheapest International Money Transfers

I need to transfer more than 50,000 Swiss francs to an Austrian bank account at the PSK-Bank (postal bank).

I can use one of 3 Swiss banks: Berner Kantonalbank, Migros Bank and Postfinance. Is it possible to negotiated the exchange rates? Is it possible that Postfinance provides the best transfer conditions?

I have already tried to get answer over the phone. However, the Posfinance representatives did not give me any real, useful information. I am not sure how to go about negotiating with them.

Hi there,

You can certainly try to negotiate. However, most Swiss banks will only negotiate custom exchange rates for amounts much larger than 50,000 Swiss francs.

There are two main ways to go about transferring the money:

1. You can transfer the money in euros using a SEPA transfer. In this case, the Swiss bank converts the money from CHF to EUR before transferring it to the Austrian bank. You can find more information in the moneyland.ch guide to international bank transfers.

A study of average currency exchange spreads conducted by moneyland.ch in November 2017 shows that of the 3 banks which you mentioned, the forex rate used by Postfinance has the lowest average exchange spread. You can request a free copy of this comparison as a PDF at the foot of the moneyland.ch guide to Swiss bank currency exchange rates.

Rates change on a daily basis, so checking and comparing the current rates is recommended. You can find today's Postfinance exchange rates here: https://www.postfinance.ch/de/priv/prod/pay/abroad/currency.html

2. You transfer the money in Swiss francs using an international giro transfer. In this case, the Austrian bank receives the money in CHF and converts it to EUR using its own exchange rates. This type of transaction may take 3-5 days to clear. The rate which applies at the time that the transfer is cleared will be used for the conversion. Consider asking the Austrian bank for their exchange rate so that you can compare their spread to those of your Swiss banks.

Other options:

There are other ways to move large amounts of money. These can be more complicated than simply performing a bank transfer, but in some cases you can save a lot of money.

Currency brokers and money changers are one option. These financial services providers specialize in currency exchange. Some specialize in exchanging specific currencies only (CHF to EUR and vice versa, for example), and offer exceptional rates. Peer to peer money transfer services also offer competitive rates. In some cases, even using wire transfer services like Western Union and Moneygram can work out cheaper than making a bank transfer. The online comparison service Monito provides a good overview of the costs of international money transfer services.

Best regards from Moneyguru

Hello Moneyland

Love your website and the information you provide. I have a question regarding transferring money from Canada to Switzerland. We need to transfer $150k to CH for a house downpayment.

What platform do you recommend? Using bank to bank gives a terrible exchange rate. We are debating at the moment between CurrencyFair and Wise. Another consideration is to fly back home and bring the cash here, is that even possible?

I look forward to your reply.

Hi there,

There are money transfer services and neobanks which have lower fees and more favorable exchange rates than most banks. A good first step is to compare offers from money transfer companies and currency brokers. Monito.com is a comparison platform that specializes in money transfer comparisons.

It is theoretically possible to bring the money to Switzerland in cash, but that is not likely the most favorable option. Apart from the cost of travel, the cost of changing the money will also likely be high. The banknote rates used by Swiss banks for changing cash are often less favorable than the forex rates which they use for bank transfers. You will also have to declare the money when leaving Canada, and provide clear documentation about the origins of the money. If more documents are needed, this could result in delays and additional expenses. There is also the risk of theft or loss during transportation. For these reasons, I would not recommend bringing that sum of money to Switzerland in cash.

Best regards,

Daniel