How does SWIFT Transfers work?

If you want to send money abroad, the quickest and safest way to do so is to make an international bank money transfer. Several types of transfer are available, each attracting different fees and associated costs so it is important to understand the options so you can choose the type that suits you best.

One of the most popular methods of transferring money from your bank to one in a foreign country with a different currency is to use a SWIFT funds transfer.

First established in 1973, the Society for the Worldwide Interbank Financial Telecommunication protocol is both safe and secure.

Every bank that is a member of the society - and the vast majority of banks are - is provided with a SWIFT number, also known as a bank identifier code. These codes are usually eight characters long and are unique to the individual bank. Your relationship manager will be able to provide you with the SWIFT number of your bank, should you wish to receive funds in this way.

The SWIFT system involves sending secure messages between banks letting them know that money has been paid into one and should therefore be made available in another. No actual money is transferred as the result of a SWIFT message but the system acts as a guarantee that the appropriate funds will be credited to the required account.

In order to make a SWIFT transfer you will need to have the account number of the person you want to pay along with the full address of their branch. You will also need the SWIFT number of their bank. It can take up to five days for the funds made via a SWIFT transfer to arrive in the account of the beneficiary. SWIFT transfers are subject to fees and the amount of money received will be dependent on the prevailing currency exchange rate.

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