HBL UK International Money Transfers: Everything You Need To Know

Habib Bank Limited (HBL) is a multinational bank headquartered in Karachi, Pakistan, which today has a wide reach spanning as many as 25 countries worldwide.

While based in Zurich, Switzerland, rather than in London, HBL Bank UK is the global bank's UK subsidiary, where it holds major branches in the cities of London, Manchester, Leicester, and Birmingham.

Offering a wide range of financial services, including international money transfers, HBL UK is particularly popular among people with a Pakistani background living in the UK, due to the bank's close relationship with the country. As a result, if you're somebody who's looking to send money from the UK to Pakistan, HBL Bank UK offers some of the most competitive rates on the market.

What Will HBL UK Charge You?

Making an international money transfer with HBL UK comes with its fixed costs. These will depend on where you're sending your money to, as well as the type of transfer you'd like to make.

Take a look at the breakdown below to get a better picture of what you might pay when sending money abroad with HBL UK:

• When sending remittances to Pakistan, transfers over £140 are free, while transfers under £140 are charged £10;
• When sending money to any country other than Pakistan, transfers up to and including £100,000 are charged £30, while transfers over £100,000 are charged £50.

If you're looking to transfer money to Pakistan by any means other than online or mobile banking, then you'll be subject to the following fees in addition:

• When sending in-person using your bank account, you'll be charged £0.50 per £100 you transfer;
• When sending in-person using your credit card, you'll be charged a 3% fee on your transfer;
• When sending in-person using your debit card, you'll be charged a £2.50 fee on your transfer.

HBL UK International Money Transfers: Beware the Hidden Fees

On top of the standard fees and commissions outlined above, HBL Bank UK weaves in another fee into its international money transfers, this one considerably less transparent!

In essence, every time you convert your Pound sterling into another currency, you sell your cash to a bank that, in turn, agrees to transfer that same amount to your beneficiary in another currency. This is where banks introduce a hidden fee. Because the bank's exchange rates are slightly different to the exchange rates you might see on Google, for example, a small profit can be made on international transfers — something that's known as an exchange rate margin.

HLB UK's exchange rates vary quite considerably depending on the currency to which you're converting. Still, in general, they are considerably lower than those you'd get with big-league UK banks such as HSBC, Barclays, and NatWest. For example, with Barclays and NatWest, the hidden exchange rate fees will typically be between 4% and 10% of your entire transfer amount. However, with HBL UK, the most pricey exchange rate margins we found were less than 2.5%.

Noteworthy is that HBL UK makes it significantly cheaper to send money to Pakistan than sending money to a European country, for example. As such, the bank is an especially attractive money transfer option if Pakistan is the destination of your transfer.

The Costs Combined

All things considered, the total cost of your international money transfer with HBL UK will ultimately be a combination of the fixed fees and the exchange rate margins outlined above.

In the case of sending money abroad with HBL UK, while the total costs are indeed notably lower than those of many other UK banks, they can still amount to a lot of money, especially in the face of lower-cost alternatives on the market. What's more, the costs depend significantly on the amount of money you choose to make an international money transfer.

For example, if you were to send £100 to a family member in Pakistan, you'd be hit by considerably higher fees as a percentage of your transfer amount than you would if you were to send £150 to that same person. Because of the fixed fee of £10 for amounts sent to Pakistan under £150, in the former example, you'd pay £10.50 in total fees (10.50% of the transfer amount), wherein the latter example, you'd only pay £0.83 in total fees (0.55% of the transfer amount).

This is why we firmly recommend that, if you're sending money to Pakistan with HLB UK, you make sure that you send your money in sums larger than £140 to avoid the fixed fee and pay only the (relatively low) exchange rate margin on your transfer.

Take a look at the table below to get a sense of how much you can expect to pay in fees when making an international money transfer with HBL UK to Pakistan and to the United States:

HBL UK International Money Transfers: Other Fees to Anticipate

Over and above the fees listed above, you may run into several other fees when sending an international money transfer with HBL UK, depending on your individual circumstances:

• If you choose to duplicate or cancel your money transfer, you can expect to pay a £10 fee for amounts under £500, and a £15 for all amounts £500 and over;
• When sending money to Pakistan for non-remittance purposes (i.e. for commercial purposes), you will be charged a £25 flat fee.

In addition to this, if the overseas bank of your recipient doesn't have an established relationship with HBL UK, you may also be hit with what's known as a foreign bank charge or agent charge. Should this apply to you, HBL UK will use an intermediary bank to complete your transaction. You'll be given the option either to pay the cost yourself ("OWN"), to share the cost with the recipient ("SHA"), or to pass the cost along to the recipient entirely ("BEN").

💡 INSIDER'S TIP

Avoid "OUR" Payments. In the case that you're asked to choose between "SHA", "BEN" and "OUR", we recommend that you avoid choosing "OUR" payments wherever possible. These instructions can open the door to your beneficiary's bank or the intermediary bank levying further fees from you long after the transfer has been sent.

Is HBL UK Right for You?

Habib Bank Limited is a solid and reputable financial services provider with a long history of excellence. Popular among the global Pakistani community, HBL UK offers some of the lowest rates on remittances to Pakistan, making the bank an extremely attractive choice if you wish to send to that country and value both low fees and reliable service.

While HBL UK offers some of the lowest rates available on the market (lower even than some low-cost currency exchange providers such as Xendpay), they're still not the cheapest transfer of all. Solutions such as Western Union, Remitly, Skrill, and TransferWise, offer lower fees and exchange rates, making them smarter choices for the savvy user.

Take a look at the table below to get a better idea of how HBL UK's rates compare to those of other low-cost providers on a 2,500 transfer to Pakistan:

For this reason, if you're planning to send money to Pakistan and don't mind paying slightly higher fees for the reputability and service that comes along with HBL UK, then we recommend sticking with the bank. However, if you'd like to get the lowest-cost deals on every remittance you send home, then we recommend looking at one of the transfer providers above or using our comparison engine before every transfer.

What's more, if you're not planning on sending money to Pakistan, HBL UK largely loses the competitive edge it has. Therefore, we recommend that you choose lower-cost currency exchange providers if you're somebody who values making savings on every transfer.