Money from home: fees, rates and fake 'agents'
Lesson 13 of 14 in our free Banking & Payments guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Banking & Payments is free for everyone.
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Questions you'll answer
Your family sends the equivalent of £1,000. Service A: no fee, but a rate 3% worse than mid-market. Service B: £8 fee and a rate 0.5% worse. How many pounds more does Service A cost?
You need £2,000 for rent from family abroad. Which comparison is the fair one?
Quick facts
- Red flag: “I can get you a special rate, 15% cheaper than your bank.” — Nobody legitimate can beat the market by 15%. Fake 'fee agents' use stolen cards or criminal money, and your payment gets reversed.
- Red flag: “Send the money to my personal account” — Tuition goes to the university, through the payment routes on its own website. Never via someone's personal account.
- Red flag: “and I'll pay the university for you.” — If the payment is fraudulent, the university reverses it. You still owe the fees and may lose what you sent.
- Red flag: “Offer ends Friday, many students waiting!” — A deadline plus 'everyone's doing it' is pressure. Real payment routes don't run flash sales.
- Fact: “Paying your fees through the routes on your university's website is the safe way to do it.” — Use only the payment options your university lists. If unsure, email the finance office from the address on its website.
- Myth: “A transfer with no fee is always the cheapest way to send money.” — The margin on the rate can cost more than a fee. Compare the amount that arrives.
- Fact: “Carrying £10,000 or more in cash into the UK from outside it means you must declare it.” — The UK has a cash declaration rule at £10,000 (and €10,000 into Northern Ireland from the EU). A bank transfer is safer anyway.
- Myth: “Letting a stranger's 'fee payment' pass through your account is harmless if you don't keep any money.” — That's money muling. It can close your account, hurt your credit and put your visa at risk.