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Fee for Money Being Transferred to Turkey

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Transferwise is highly recommended in the forums and other websites I visit. There's a fee for the sender. Some banks also charge a small fee for receiving the money. I bank with Yapıkredi and I think they charge like ten lira.

You can contact your bank to see how much they would charge. Sometimes they have a fixed rate, sometimes they charge a fixed amount. You can also check Transferwise to see how much they charge, just go to their website.

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If I send a Canadian currency to Turkish bank account through Transferwise, does it transfer Canadian currency to Turkish currency into the Turkish bank account? Is there any way that I can transfer Canadian currency  to Canadian currency into the Turkish account?

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If you send Canadian currency to a Turkish currency account, it will be exchanged to Turkish lira during the transfer using the going international conversion rates. From what I have read online from others who have transferred money that way, this is cheaper than transferring foreign currency to a foreign currency bank account in Turkey and then having the bank convert it.

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  • Ken Grubb changed the title to Fee for Money Being Transferred to Turkey

An important update on what I wrote above.

On April 7th, 2021, I needed to send $10,000 US dollars to my Yapı Kredi bank account in Turkey. So I called my bank and arranged it. It would be a transfer that would automatically convert to Turkish Lira and be deposited into my Yapı Kredi Turkish lira account. That way, I wouldn't pay any fees.

But while arranging the transfer, the person I was speaking to said they would send the money at the exchange rate of 7.2425.

So my $10,000 USD would arrive as ₺72,425 Turkish lira.

Oh, wait! I remembered looking at the exchange rate on the Yapı Kredi Bank website. Their exchange rate, for converting US dollars to Turkish lira, was 7.8752. That's a BIG difference from 7.2425.

If I had transferred US dollars into my Turkish bank account, I would have lost around $600 dollars. Far more than whatever fees Yapı Kredi would charge me for the exchange.

So I canceled the transfer.

And I arranged a new transfer of the same $10,000 US dollars from my American bank account to my US dollar account at Yapı Kredi.

The money arrived in two days. From the $10,000 US dollars I transferred, Yapı Kredi charged me $63 US dollars. So I ended up with $9,937 US dollars.

I then exchanged the $9,937 US dollars into Turkish Lira. And Yapı Kredi did that at an exchange rate of 7.8905, which was even better than the exchange rate I had when I was arranging the transfer.

By transferring $10,000 USD into my YapıKredi US dollar account, after the fees, I ended up with ₺78,351.

If I had transferred $10,000 USD into my YapıKredi Turkish lira account, with no fees, I would have ended up with ₺72,425.

That's a difference of ₺5,926 Turkish Lira.

I was astonished at the difference in the exchange rates, and that even if I had to pay the Turkish bank fee, how it would still be to my advantage.

Note: Interestingly, that was the day that the US government sanctioned Turkey for buying Russian missiles.

The most important thing to walk away with from this is:

If you're going to make an international bank transfer from your home country to Turkey,

  • Learn what your Turkish bank charges for receiving your foreign money into an account of the same foreign money.
  • Learn what your home country bank fee is for sending your money to a Turkish lira account.
  • Learn what exchange rate your Turkish bank uses to convert your foreign money into Turkish lira.
  • Learn what exchange rate your home country bank will use to convert your home country currency to Turkish lira.
  • Learn what exchange rate your Turkish bank will use to convert your foreign money into Turkish lira.
  • Take time to do the math. Then make the transfer that is most profitable for you.
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