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Wise vs Revolut vs Bank Transfer: Cheapest Way to Send Money from Australia

Key Takeaways

• Wise and Revolut typically offer better exchange rates and lower fees than traditional bank transfers
• Bank transfers are slower but may suit occasional, larger transfers
• The cheapest option depends on the amount, destination country, and frequency of transfers
• Always compare fees and exchange rates before sending money
• Set up accounts in advance so you're ready when you need to transfer funds

Why International Money Transfers Matter for International Students

As an international student in Australia, you might need to send money home regularly for personal expenses, or receive funds from family. Whether you're transferring AUD to your home country or receiving money from overseas, the cost of getting your money there matters. A poor exchange rate or high fees can mean losing hundreds of dollars on a single transfer.

This guide compares three main ways to send money: Wise, Revolut, and traditional bank transfers. We'll help you understand the costs, speed, and best uses for each option.

Understanding Transfer Costs

When comparing money transfer services, look at two key costs:

• Exchange rate markup: The difference between the real mid-market rate and the rate you actually get
• Transfer fees: The flat fee or percentage charged to process your transfer

The total cost is the combination of both. A service with no transfer fee might still be expensive if the exchange rate is poor.

Wise: The Specialist Money Transfer Service

How Wise Works

Wise (formerly TransferWise) is a specialist money transfer service designed specifically for international transfers. Instead of routing money through traditional banking networks, Wise uses a clever system where it matches transfers going in opposite directions.

Wise Costs

• Exchange rate: Mid-market rate (the real rate) with no markup
• Transfer fee: Typically 0.4% to 0.8% of the amount you send, with a minimum fee (usually around AUD $1-2)
• Example: Sending AUD $1,000 to the UK might cost around AUD $8-10 in fees

Wise Speed

• Most transfers arrive within 1-2 business days
• Some corridors (like Australia to UK or US) are typically faster
• Weekend and public holiday transfers may take longer

Wise Pros

• Best-in-class exchange rates (mid-market with no markup)
• Low, transparent fees
• Fast transfers to most countries
• You can hold money in multiple currencies
• Good for regular, smaller transfers

Wise Cons

• Not all countries are supported
• Some destination bank accounts may have additional requirements
• Fees are percentage-based, so very large transfers still cost more in absolute terms

Revolut: The Digital Banking Alternative

How Revolut Works

Revolut is a digital banking app that offers money transfer services alongside other banking features. It's designed as an all-in-one financial app for managing money across multiple currencies.

Revolut Costs

• Exchange rate: Mid-market rate for most users, though some plans charge a small markup
• Transfer fee: Free for standard transfers (3-5 business days), paid options available for faster transfers
• Example: Sending AUD $1,000 to Europe with a standard transfer might cost AUD $0

Revolut Speed

• Standard transfers: 3-5 business days (free)
• Express transfers: 1 business day (paid option, typically AUD $2-5)
• Instant transfers to other Revolut users (free)

Revolut Pros

• Free standard transfers with mid-market rates
• Good for sending money to many countries
• Multi-currency account features
• Can be useful as a general banking app
• Instant transfers between Revolut users

Revolut Cons

• Slower standard transfers (3-5 days)
• Paid express option adds cost if you need speed
• Not all countries supported
• Some users report customer service challenges
• Account verification can take time

Traditional Bank Transfer: The Conventional Option

How Bank Transfers Work

Traditional bank transfers use the SWIFT network to move money between banks internationally. You initiate the transfer through your Australian bank, and it routes through multiple banks to reach the destination.

Bank Transfer Costs

• Exchange rate: Bank's rate, typically 2-4% worse than mid-market
• Transfer fee: Usually AUD $15-30 per transfer
• Receiving bank fee: The destination bank may charge an additional fee (AUD $10-50)
• Example: Sending AUD $1,000 might cost AUD $40-80 in total fees, plus poor exchange rate

Bank Transfer Speed

• Typically 3-7 business days
• Can be slower to some countries
• No guarantee of speed

Bank Transfer Pros

• Works to virtually every country
• Familiar process if you've used it before
• No need for additional apps or accounts
• Good for very large transfers where percentage fees become significant

Bank Transfer Cons

• Expensive fees (both sending and receiving)
• Poor exchange rates
• Slow and unpredictable timing
• Least transparent pricing
• Most expensive option for regular transfers

Direct Comparison: Real-World Examples

Scenario 1: Sending AUD $500 to India

• Wise: Fee ~AUD $4, mid-market rate = approximately AUD $500 - $4 = AUD $496 sent
• Revolut: Fee AUD $0 (standard), mid-market rate = approximately AUD $500 sent
• Bank transfer: Fee ~AUD $25, poor rate = approximately AUD $500 - $25 - $20 (rate loss) = AUD $455 sent
• Winner: Revolut (if you can wait 3-5 days), otherwise Wise

Scenario 2: Sending AUD $3,000 to UK

• Wise: Fee ~AUD $24, mid-market rate = approximately AUD $3,000 - $24 = AUD $2,976 sent
• Revolut: Fee AUD $0 (standard), mid-market rate = approximately AUD $3,000 sent
• Bank transfer: Fee ~AUD $30, poor rate = approximately AUD $3,000 - $30 - $60 (rate loss) = AUD $2,910 sent
• Winner: Revolut (if you can wait), otherwise Wise

Scenario 3: Sending AUD $10,000 to Canada

• Wise: Fee ~AUD $80, mid-market rate = approximately AUD $10,000 - $80 = AUD $9,920 sent
• Revolut: Fee AUD $0 (standard), mid-market rate = approximately AUD $10,000 sent
• Bank transfer: Fee ~AUD $30, poor rate = approximately AUD $10,000 - $30 - $200 (rate loss) = AUD $9,770 sent
• Winner: Revolut (if you can wait), otherwise Wise

Choosing the Right Option for You

Choose Wise If:

• You need the transfer within 1-2 business days
• You're sending under AUD $5,000
• You want transparent, mid-market exchange rates
• You're sending regularly and want predictable costs
• Your destination country is supported by Wise

Choose Revolut If:

• You can wait 3-5 business days
• You want free transfers with good rates
• You want to use the app for other banking features
• You're sending to a supported country
• You have Revolut-using friends (for instant transfers)

Choose Bank Transfer If:

• You're sending to a country not supported by Wise or Revolut
• You're sending a very large amount (AUD $50,000+) where percentage fees become significant
• You prefer the familiarity of your existing bank
• You have no other options available

How to Set Up Each Service

Setting Up Wise

1. Visit wise.com and click 'Sign up'
2. Enter your email and create a password
3. Verify your email address
4. Complete identity verification (upload ID and take a selfie)
5. Add your bank account details
6. You're ready to send money

Setting Up Revolut

1. Download the Revolut app from your phone's app store
2. Enter your phone number and email
3. Verify your phone number with a code
4. Complete identity verification (upload ID and take a selfie)
5. Add your Australian bank account
6. You're ready to send money

Using Your Bank Transfer

1. Log into your Australian bank's app or website
2. Select 'International Transfer' or 'SWIFT Transfer'
3. Enter the recipient's bank details (IBAN, SWIFT code, or account number)
4. Enter the amount in AUD
5. Review the fees and exchange rate offered
6. Confirm and send

Important Warnings and Tips

Verify Bank Details Carefully

Before sending any money, double-check the recipient's bank details. International transfers are difficult to reverse if sent to the wrong account. Ask the recipient to confirm their details in writing.

Check Country Support

Not all countries are supported by Wise or Revolut. Before setting up an account, check that your destination country is on their supported list. This is especially important if you're sending to a less common destination.

Watch Out for Hidden Fees

Some banks charge receiving fees that aren't visible until the money arrives. Ask your recipient's bank about any fees they might charge. With Wise and Revolut, you typically know all costs upfront.

Exchange Rates Change Constantly

Exchange rates move throughout the day. If you're comparing costs, check rates at the same time. Wise and Revolut show you the exact rate you'll get before you confirm the transfer.

Keep Records

Save confirmation emails and transaction references for all transfers. You'll need these if there are any issues or for tax purposes.

Frequently Asked Questions

Is it safe to use Wise or Revolut?

Both Wise and Revolut are regulated financial services in the UK and Europe. They use encryption and security measures to protect your money. However, always download apps from official app stores and verify website URLs before logging in.

Can I send money as a student?

Yes, both Wise and Revolut accept international students. You'll need to complete identity verification, which requires a valid passport or ID. You'll also need an Australian bank account to fund transfers.

How long does verification take?

Wise and Revolut typically verify accounts within a few hours to 1 business day. Set up your account before you need to send money so there's no delay.

What if my transfer doesn't arrive?

Contact the service's customer support immediately with your transaction reference. Wise and Revolut have dedicated support teams. For bank transfers, contact your bank. Most issues are resolved within 5-10 business days.

Can I receive money using these services?

Yes, both Wise and Revolut can receive international transfers. You'll get local bank account details to give to the sender, making it cheaper and faster than traditional bank transfers.

The Bottom Line

For most international students in Australia, Revolut is the cheapest option if you can wait 3-5 business days, offering free transfers with mid-market rates. If you need speed, Wise offers the best combination of low fees and fast transfers. Traditional bank transfers are the most expensive option and should only be used when the other services don't support your destination country.

Set up both Wise and Revolut accounts before you need them. This way, you'll be ready to transfer money quickly and cheaply whenever you need to.

Official Resources

• Australian Securities and Investments Commission (ASIC) - Regulates financial services in Australia
• AUSTRAC - Australian Transaction Reports and Analysis Centre, manages anti-money laundering regulations
• Reserve Bank of Australia - Information about exchange rates and financial regulations
• Study Australia - Official information for international students
• Department of Home Affairs - Immigration and visa information

Looking for the full picture across every major provider? See our complete guide to the cheapest ways to send money overseas from Australia, covering Wise, Remitly, OFX, and bank transfers.

Frequently Asked Questions

Which is the cheapest way to send money from Australia overseas?

Wise and Revolut typically offer better exchange rates and lower fees than traditional bank transfers, but the cheapest option depends on the amount, destination country, and frequency of transfers. Compare fees and exchange rates for your specific transfer before choosing.

How much can I lose with a bad exchange rate?

A poor exchange rate or high fees can mean losing hundreds of dollars on a single transfer. This is why comparing the mid-market rate against what your provider offers is essential before sending money.

Is it better to use Wise, Revolut, or my bank?

Wise and Revolut generally offer faster transfers and better rates for regular or smaller amounts, while traditional bank transfers may suit occasional larger transfers but are slower and more expensive. The best choice depends on how much you're sending and how often.

When should I set up my transfer account?

You should set up accounts with your chosen provider in advance so you're ready when you need to transfer funds. This avoids delays when you urgently need to send or receive money.

This is general information only. Check official sources before acting.