Co-operative Bank includes a 4% exchange rate markup on outgoing and incoming currency transfers. This is high compared to other UK banks, and especially high in contrast to specialist money transfer services.
The other transfer fees charged by Co-operative Bank are in the typical range, and have most impact for smaller transfers.
Co-op international transfer fees & rates
With banks, fees aren't usually the issue. Most of them charge a similar flat fee for various types of international transfer.
If you're sending more then a couple of hundred quid, the fee pales into insigificance compared to the exchange rate.
Charge | Amount |
|---|---|
Sending money to another currency/country | 4% markup on mid-market rate |
Receiving foreign currency to GBP account | 4% markup on mid-market rate |
SWIFT payment | 0.25% of the value of the transaction, capped within a range of £13 to £35 plus postage, transmission and agents charges where applicable |
Structured USD payment | £8 |
SEPA payment | Free |
Real time euro payment (TARGET) | £25 plus postage, transmission and agents charges where applicable |
Cancellations, amendments and enquiries | £20 plus postage, transmission and agents charges where applicable |
Examples of exchange rates offered by Co-op Bank
The following examples show the impact of Co-operative Bank's 4% conversion markup on both outgoing and incoming transfers.
To demonstrate, I've used live exchange rates taken on the 24th of September 2024.
Amount sent | Amount received | Effective cost vs. the mid-market rate |
|---|---|---|
£500 | €576.12 | £20 |
£1,000 | €1,152.25 | £40 |
£2,000 | €2,304.50 | £80 |
£10,000 | €11,522.48 | £400 |
£50,000 | €57,612.41 | £2,000 |
£250,000 | €288,062.06 | £10,000 |
Amount sent | Amount received | Effective cost vs. the mid-market rate |
|---|---|---|
$500 | £358.90 | $20 |
$1,000 | £717.81 | $40 |
$2,000 | £1,435.61 | $80 |
$10,000 | £7,178.06 | $400 |
$50,000 | £35,890.32 | $2,000 |
$250,000 | £179,451.60 | $10,000 |
As their conversion fee is a flat 4%, the effective cost to you is the same across currencies.
This percentage is high for any amount, but as you can see from the data, large transfers could cost five figures.
Yes, you're right - the nuance is where the currency conversion happens.
Let's look at a USD to GBP transfer.
If the sending bank converts the currency to GBP, then the recipient will receive in their own currency, and no further conversion fees will be applied by the receiving bank.
If the sending bank transfers in USD, then the receiving bank will need to do the conversion. In this case, their currency markup will be applied to the conversion instead.
You can learn more about this in the guide I created on receiving international payments.
How Co-op's foreign transfers compare to the alternatives
Co-operative Bank vs other UK banks
Co-operative Bank has some of the highest exchange rate markups of any UK high street bank.
Nationwide, for example, convert at rates almost half the cost of Co-op.
They really aren't competitive at all, so if you have incoming or outgoing currency transfers and are using the Co-op, it's really time to find a new solution.
I've put together a guide that specifically looks at how much UK banks charge for international transfers. Take a look for a more detailed analysis.
Co-operative Bank vs money transfer specialists
If the Co-op is uncompetitve compared to banks, then it looks even less favourable against the FX pros.
Let's take a look:
Transfer provider | Fee structure | Amount received on a £10k transfer to USD (estimate) |
|---|---|---|
Co-operative Bank | Standard transfer fees + 4% exchange rate markup | $12,837.82 |
Fees from 0.3% + 0% exchange rate markup | $13,331.06 | |
No fees + typical 0.4% to 0.7% exchange rate markup | $13,315.00 | |
0.2% fee + 0% exchange rate markup | $13,347.59 | |
No fees + 0.3% to 2.1% exchange rate markup | $13,319.00 |
By sending money via a money transfer company or currency broker, you can avoid Co-operative Bank's high charges.
The process would be simple:
Compare companies and get quotes to find the best for your needs
Create your account and set up your transfer
Fund the transfer by making a payment from your Co-operative Bank account to the money transfer company you selected
This company will then perform the conversion for you at a low cost, and send the funds on to your chosen recipient.
Co-operative Bank international payment contact details
Call 03457 212 212
Lines open 8am to 6pm Monday to Friday, and 9am to 5pm on weekends
For receiving payments, Co-operative Bank's BIC/SWIFT is CPBKGB22 and their registered address is The Co-operative Bank plc, 1 Balloon Street, Manchester, M4 4BE
