How to send money to South Africa using a money transfer service or foreign exchange broker to a South African bank account.
Transferring Money to South Africa
When transferring money to SA either routinely or occasionally. There are numerous ways you can ensure you get a fantastic South African rand exchange rate. Are offered outstanding FX solutions and ensure you are transferring money to South Africa safely.
Ways to Send Money to South Africa
- Debit Card – If paying for items online or through an e-tailer, you might have the ability to make use of a debit card. You are unlikely to purchase with a competitive ZAR currency exchange rate when sending money to SA with a debit card. You may also be billed an admin charge or transfer cost. Those that are looking to transfer money to SA to acquire a property or pay a legal bill relating to a residential property. Might need to send money to SA through a bank transfer. Therefore, they will need to move funds either using a bank or, ideally foreign exchange broker. In many situations, a currency exchange broker will approve a debit card as a payment settlement. Thus, allowing you to trade currency with ease, in addition to receiving a better ZAR currency exchange rate.
- Credit Card – Perfect for leasing a home in South Africa to guarantee financial protection and the bank’s assurance, in case all isn’t as it seems. Not significant concerning the currency exchange rate, yet sometimes air miles or reward factors can compensate for a poor exchange rate.
- Bank Transfer – Many will opt to transfer their money directly from financial institutions current account. Usually, the currency exchange rate to transfer money to SA will be a lot less competitive than the currency exchange rate available by a foreign exchange broker. In addition to this, you might have to visit your regional branch to move a significant quantity of Rand. When sending money to South Africa via a financial institution transfer, you will generally be billed a transfer charge of around ₤ 10-30 or local money equivalent.
- Swift – Swift payments relate to money transfers outside the EU, within the EU. Therefore, not applicable when sending money to SA is the SEPA repayments system. As a result of South African rand transfers not belonging to the quick SEPA system, money transfers to South Africa can take a couple of days longer than transfers within the EU.
Required Bank Details to Transfer Money to South Africa
Identification – To send money by bank transfer, you will require 1-2 examples of photo ID. Plus need to have a debit card in your possession when visiting the bank branch. If you can send out money to SA utilising your online checking account will need a card reader and relevant logins.
If using the solutions of a currency exchange broker, all of your documents etc. will be conserved when you opened the money transfer account. Your account manager will ask you a couple of straightforward questions to validate the account over the phone. Their online systems are similar to those of financial institutions, just with far better online currency exchange rate pricing.
Swift Code – A South African Swift code will begin with a four-letter bank code, adhered to by a two-letter country code, then a two-letter area code, finished by a 3-number branch code. South Africa does not use the IBAN system.
Time taken to send money to South Africa
- Typical time – For a foreign exchange broker to receive, convert your local money to the South African Rand. Then transfer your money to a South African checking account. You have to allow between 1-3 working days. Occasionally the beneficiary bank branch may take a while to process and designate funds. If using a retail banking establishment, you should allow 1-2 days extra as their handling is typically slower.6
- Same-day transfer – If funds lie in your foreign exchange transfer account. You have a possibility of transferring your South African Rand to South Africa and the Rand clearing the next day. A same-day transfer to South Africa is exceptionally unlikely when making use of the swift payments system. It can take the recipient checking account one day or even more to assign funds. Financial institutions will take a while longer, generally 2-4 working days.
Cost to Transfer Money to South Africa
- Commission – Commissions earned on international money transfers by banks differ from bank to bank yet are inevitably uncompetitive. A currency exchange broker will usually have the ability to economise in between 1-4% when sending money to South Africa in addition to various other locations.
- Transfer Fees – A financial institution will usually charge anywhere between ₤ 10 -40 to send your money to SA. Generally, foreign exchange brokers will not bill a transfer fee. All included on foreign exchange live operate a fee-free service.
- Exchange Rate – Financial institutions will generally use a ‘day currency exchange rate’, which will be calculated when the branch opens. To cover any FX market movements with the South African Rand, a healthy margin will be included to cover daytime volatility and safeguard earnings on the potential trades. On the other hand, FX brokers work from real-time South African rand rates, allowing you to gain from good trends and seek advice if the rate works against you.
Fees for Receive Money in South Africa
South Africa adopts the swift payment service, which, when compared to SEPA, can be pricey and slow-moving. If you are sending money to South Africa, you will most likely be billed an intermediary fee or charge. An fx broker will commonly absorb the cost, yet banks will certainly bill or deduct from the Rand.
Limits on Money Transfers to South Africa
Customers should not be limited to how much money they can move to South Africa. On the proviso, you or your business can justify the South African rand money transfer. If your currency exchange broker authorises the money transfer, there is no restriction on just how much you can trade.
Generally, suppose a transfer goes beyond ₤ 500,000+ or local money equivalent. In that case, your international currency broker can request a copy of the bank statement to verify your capacity to buy the ZAR currency contract. They may supplement these request documents to show the reason for the transfer (e.g., South African property purchase).
Transfer Deposit to Open a South African Bank Account
Global financial institutions or foreign exchange providers will be more than happy to assist with transferring funds to a new ZAR bank account. Just ensure any documents, together with your Rand account details, are to hand. After that, your financial institution or broker can assist with your ZAR bank deposit transfer and send your money to SA.
Do Foreign Exchange Brokers Transfer Money to all South African Banks?
Foreign exchange providers will be pleased to send ZAR to any South African bank, providing they have the correct SA regulation. An issue will only occur if the bank, credit union or investment house has been blacklisted. If this is the case, the foreign exchange specialists will do their best to protect their client and reject the client’s transfer. A transfer rejection only usually occurs when the account is linked with fraudulent activity.
Safely Send Money to South Africa
Fortunately, foreign exchange brokers understand global settlements frauds exist. They will be diligent in your place, run recipients via their systems, and flag any questionable payments or beneficiaries.
- FCA –Always be sure your UK foreign exchange broker is the financial conduct authority authorised. They shouldn’t ever refrain from sharing their number on the FCA’s register, which should also be visible on their company website.
- Guarantees – Whilst a broker will not have the ability to provide assurances, their accounts should only be held with tier 1 banking establishments. All customer funds must be allocated to segregated accounts, with funds kept individually from their funding and capital. As a result, if something was to occur to the foreign exchange provider, your funds can be retrieved directly from the tier 1 banks.
- Protection – Trusted foreign exchange brokers abide by substantial anti-money laundering protocol to guarantee they are exclusively looking after the transfers of reputable clients and companies. This diligence is continued when they transfer money and likewise transfer funds to South Africa. To ensure standards remain high, money exchange brokers may make inquiries on transfers whose recipients look dubious. Money broker’s FX trading systems are electronically secured. They also use high degrees of internet protection to avoid the opportunity of their customer’s information being taken.
- Fraud – Despite these preventative steps, dubious cash transfers can occur within the international money transfers’ field. You can, however, take measures to restrict your chances of ending up being a transfer fraud target. Never send your password or secure logins over email or be pressurised to make a money transfer by an FX broker. Make certain interaction with your broker is from their company email address. Suppose you are phoned unexpectedly by an unidentified member of the broker’s group or new money account supervisor. Arrange to call them back to guarantee they are a staff member of the forex broker you work with.
Reasons to send money to South Africa
- Bills – Your South African property or company will certainly have regular running expenditures and also payments. These can include South African property tax, restoration costs, or utility bills. A currency exchange broker will be more than happy to assist with ongoing transfers to cover your South African bank account. They’ll be glad to take care of any money transfers to South Africa.
- Loans – If you have been lent money by a good friend or member of the family in America, you may desire to clear the financial debt if ZAR rates move in your favour. On the other hand, if you have a second home mortgage on your South African residential or commercial property. Imagine the South African Rand rate remains in your favour. You might consider sending money to South Africa to clear part of your Rand domestic or office mortgage.
- Family – Birthday parties and events, along with household celebrations, are never far away. Your foreign exchange broker account can be an excellent means to send financial gifts to a loved one in South Africa.
- Property – When the South African rand currency exchange rate jumps in your favour, you may think of capitalising and renovate or improve your home in South Africa.
- Inheritance – Regretfully, many people experience family and friends passing away overseas. You might need to repatriate inheritance funds to South Africa. A broker can sensitively deal with the transfer.
- Car – If transferring to South Africa, you may wish to lease or purchase a car to commute or discover different other areas in South Africa
- Holiday – If renting a home or apartment for a trip to South Africa. Your foreign exchange broker will provide a much better ZAR currency rate than your financial institution or debit card.
- International wholesalers – When buying overseas products or items. You can use solutions offered by a currency exchange broker to lessen FX risk connected to purchasing items from wholesalers that market in South African Rand.
Foreign Exchange Brokers
Considering the services of a credible currency exchange broker is the best way to save money when sending money abroad. Savings between 1-4% are feasible, significant on regular transfers and South African property purchase money transfers. They can also provide you with several solutions to maximise the amount of currency you receive in South Africa.
Finding a reputable Foreign Exchange Broker
Clients can compare the offerings of transfer services and currency exchange brokers in many ways when they need to transfer money to South Africa.
- Regulation – always ensure the foreign exchange broker you use is regulated. In the UK, for example, brokers must be authorised by the FCA (financial conduct authority)
- Length of time in business – typically indicating knowledge of the market, number of clients they’ve helped, stability in the market. They are most likely to have helped many other clients transfer money to SA and deal with many different scenarios.
- Transfer fee or no transfer fee – especially worth considering when the payments being transferred to South Africa are small. A transfer fee can typically outweigh the advantages of sending the money to South Africa via a bank or broker, even if the rate offered is competitive. All brokers promoted on Foreign Exchange Live work on a fee-free basis.
- Online transfer, telephone transfers or both – online Apps are great for small transfers to South Africa. Recourse can be slow if the money goes astray. Customer service when dealing solely online can vary. Much of this service is via a chat/text box or email. An established currency exchange broker will operate both an online and telephone dealing service. Meaning you speak directly to an account manager who will be assisted by a back-office team or customer service division.
Find The Right Broker To Transfer Money To South Africa
Specialists such as Moneycorp and Rational FX have vast experience in advising and assisting clients all over the globe and saving them thousands of pounds in the process.
- Customer Service – Banks are cumbersome and hard to contact from overseas. Transfer apps can be convenient for smaller payments but don’t offer prompt customer support if an issue arises. Currency exchange brokers offer a consistent service. All clients receive a personal account manager with a direct email address and phone number to enable easy contact and customer service if required.
- Safety And Security – All top currency exchange brokers will hold client funds in segregated accounts. All transactions are conducted following the FCA regulations and guidelines. We strongly advise checking with your broker on the exact details.
- No Expensive Fees or Charges – Depending on the bank, it could cost anywhere from £10 to £4o or local currency equivalent for each transaction. A foreign exchange broker will process your transfer to South Africa with no transfer fees and a narrow margin (or spread).
- Better Exchange Rates – A bank will, as a rule, be making a spread of between 2-6%, whereas the rates on offer from leading providers will be around 1%. Once your trade is executed, you will be provided with a deal notification showing clearly the base currency amount and the number of Rand purchased.
Foreign Exchange Contracts
A currency exchange broker offers several supplementary services not available in banks or on many money transfer apps. These include:
- Spot contracts – Arranging a transfer and agreeing on a rate, and sending the money to South Africa shortly after
- Forward contracts – fix today’s exchange rate for payment up to 2 years in the future. They are guaranteeing the cost of your purchase and avoiding foreign exchange volatility.
- Stop-loss – If your currency pair is trending lower, a stop-loss protects your currency from depreciating too much. The money is traded automatically when it hits the agreed level.
- Firm order – target a rate superior to the current foreign exchange market rate. Once the desired exchange rate is reached, the currency is purchased automatically day or night.
- Option contract – as with the forward contract and having the ability to opt for a better exchange rate if the market rate improves. Typically for businesses rather than private clients.
- Regular international transfers – A payment plan to send money overseas regularly.
Documents needed for a foreign exchange broker account
The application to open your foreign exchange account can be completed within minutes. The first step is to apply online, giving personal details and a brief overview of transfer needs. Once complete, you will typically need to supply the following to get your account approved
- A valid form of photo ID
- Recent utility bill or address proof (less than three months old)
List of Foreign Exchange Brokers
- Boutique brokerages such as Newbridge FX offer tailored services. Catering to their client’s needs and work tirelessly to limit their FX risk.
- Midsize brokerages such as Rational FX operate both corporate and private client operations, focusing on key markets such as France and Spain.
- Large multi-Geographic operations such as Moneycorp operate in multiple jurisdictions. They have many local offices to best serve their global clientele.
Arranging a transfer to South Africa
Once you have chosen the foreign exchange broker, you wish to send your money to SA. You have provided the broker with the relevant documents. The next step is to arrange a money transfer to the SA. Your first money transfer can either be placed over the phone or booked online or App if the broker has this feature. Once your ZAR currency rate is booked, the FX broker will supply you with Bank details to pay your base currency or request a debit card payment. The broker will then ask for your ZAR account details to make payments.
Large Money Transfer to South Africa
Timing is vital when making a large transfer to South Africa. Therefore, many FX brokers will be advised to get in touch a few weeks before the transfer is needed in SA. The difference in a 3% exchange rate movement on a £1000 is only £30. However, on a £100,000 transfer to South African Rand, a 3% change will equate to a £3000 saving or loss.
Instant Money Transfers to South Africa
A handful of money service providers offer instant money transfers to SA. The fees charged will be comparable with the transfer fees taken by retail banks. The ZAR currency exchange rates on offer will be significantly worse than those on offer from a foreign exchange provider and be comparable to the exchange rates offered at airports and train stations.
When should I use an Instant Money Transfer Service?
Moving money to South Africa via an instant money transfer service should only be used when all other avenues have been exhausted. The currency exchange rates and transfer fees charged are the premium paid for this immediacy. If a relative loses their purse whilst overseas and needs emergency travel money, instant money transfer to South Africa should be considered.
Banks in South Africa
South African financial institutions are among the most powerful corporations in the entire continent. The presence of these banking establishments in South Africa has brought in financial investment both worldwide and locally.
So whichever bank you elect to use, you can be assured to find an extensive network of branches and ATMs that you can utilise throughout the country. Plus, enjoy online solutions allowing you to operate on a 24/7 basis.
As in the UK, charges and tariffs can differ considerably from bank to bank. South Africa’s leading banks include:
- First National Bank
- Standard Bank
- Investec Bank
- Post Bank
It is possible to open a bank account without current employment and without depositing any money. However, quarterly maintenance fees may apply, depending on the individual bank. In terms of security of funds, all South African banks above are regulated by the South African Reserve Bank.
Opening a bank account in South Africa
To open up a resident current or savings account as a foreigner, it is essential to:
Confirm all the funds or foreign assets brought into South Africa
Declare a Foreign National Statement and Verification of Employment by a South African Company form
Supply a declaration that international properties will not be offered to a third-party resident in South Africa
Provide the new south African bank with copies of:
- Valid passport
- Work or study permit
- Proof of address in South Africa, such as a utility bill
- Copies of recent bank statements from a bank in your native country or collective banking history
SA Bank accounts can’t be opened from abroad; however, the application form and any accompanying declarations must be accompanied by a certified signature (from a lawyer or solicitor).
Non-resident South African bank
If you are a non-resident applying for a savings or current account in South Africa. You will, at a minimum, require the following
- Proof of foreign income – recent payslips
- A recent document from a bank in your home country – a recent bank statement should suffice
- Ability to credit the bank account with a minimum balance
Generally, non-resident accounts may be opened in international currency only, which can sometimes be appealing due to the volatile nature of the South African Rand. There are nonetheless some exceptions to this policy. For more information, check with your local South African bank to which extent you can keep a Rand-denominated interest-bearing account.
Can I Send Money from a South African Bank Account to the UK?
Sending money from an SA account to the UK isn’t the more straightforward process. In SA, there are limits linked to annual Rand allowances. Foreign investments for SA citizens are limited to R 10 million per year. If you are dealing with a foreign exchange specialist with local accounts, this can make the process a lot more straightforward.
Can I Send Money from a South African Bank Account to a US Bank Account?
Clients will face the same challenges when sending money to the US. However, a broker with local banking will be able to help and get a great ZAR/USD exchange rate.
South African bank details
- Swift code (8 characters) – characters that identify your south African banks country, city, bank, and branch.
- Branch name -Investec Johannesburg
- Branch address – 55 17TH ROAD, Johannesburg
- Branch code – 4 characters are representing the bank. Typically looks like a shortened version of the
- South African bank’s name.
- Bank name – Investec Johannesburg
- City – Johannesburg
- Country – South Africa
Sending Bank Deposits to South Africa
Retail banks or foreign exchange specialists will be delighted to send bank deposits SA for you. All you’ll need is the relevant documentation and make sure your ZAR banks details are to hand. Once this has been provided, your foreign exchange broker will be able to convert your currency and transfer the South African bank’s deposit to your account.