How to save fees on sending money overseas
There are many ways to send money overseas. Figuring out the cheapest method depends on the amount you’re sending, its destination and how fast you need to get it there. Here are four quick tips for sending money: always take into account hidden exchange rate costs; make sure you get the best rates; check out the competition; and always read the small print.
Money transfer companies
There are a number of money transfer companies operating online like Western Union and Moneygram. Plan ahead and use delayed transactions. In other words, if the money transfer is not urgent, then you can schedule your transfer to take two to four days. The fee for this slower service is at least 20 per cent cheaper. PayPal allows individuals to transfer funds electronically from one PayPal account to another. It’s free to send money through PayPal, though the recipient overseas is charged a fee to cash the payment.
Currently, major banks offer wire transfer services in at least 25 foreign currencies. Some banks will transfer money directly into the recipient’s bank account depending on the country. This might take up to five business days and you might also need to provide your and your recipient’s banking details. But this can save a lot of hassle for the recipient.
Bank drafts
Bank drafts are known by many names. They are called money orders in Canada or cashier’s cheques in the United States. You draw a bank draft in the recipient’s name and mail or courier it to them. It takes a bit longer for the recipient to receive money, sometimes up to 15 days, but this is the best method to save on fees in a non-emergency situation.
Email money transfers
Some financial institutions offer an email money transfer service. The funds are not physically transferred by email, though the transaction is initiated by email and the recipient is notified by email that the funds are available. You don’t require the recipient’s bank account number, though a security question is generally required to identify the recipient before they can retrieve the funds.
Currency exchange brokers
When transferring much larger amounts of money, for purchasing a property, starting up a business or sending regular payments abroad, it may often be cheaper to use a reputable currency broker. In most cases, you will have to open an account with the company and you will need to fund the account using a bank account or credit card. However, the benefits of using such companies means you can make specific arrangements for your individual needs such as fixed exchange rates for a set period.
Gokul Jayapal has a master’s degree in biological sciences and currently works and lives in Toronto. A freelance writer on money and finance, he is an investment junkie who trades stocks and options part time. He can be reached at [email protected].
Courtesy: CanadianImmigrant.ca
Money transfer companies
There are a number of money transfer companies operating online like Western Union and Moneygram. Plan ahead and use delayed transactions. In other words, if the money transfer is not urgent, then you can schedule your transfer to take two to four days. The fee for this slower service is at least 20 per cent cheaper. PayPal allows individuals to transfer funds electronically from one PayPal account to another. It’s free to send money through PayPal, though the recipient overseas is charged a fee to cash the payment.
Bank-to-bank transfers
Currently, major banks offer wire transfer services in at least 25 foreign currencies. Some banks will transfer money directly into the recipient’s bank account depending on the country. This might take up to five business days and you might also need to provide your and your recipient’s banking details. But this can save a lot of hassle for the recipient.
Bank drafts
Bank drafts are known by many names. They are called money orders in Canada or cashier’s cheques in the United States. You draw a bank draft in the recipient’s name and mail or courier it to them. It takes a bit longer for the recipient to receive money, sometimes up to 15 days, but this is the best method to save on fees in a non-emergency situation.
Email money transfers
Some financial institutions offer an email money transfer service. The funds are not physically transferred by email, though the transaction is initiated by email and the recipient is notified by email that the funds are available. You don’t require the recipient’s bank account number, though a security question is generally required to identify the recipient before they can retrieve the funds.
Currency exchange brokers
When transferring much larger amounts of money, for purchasing a property, starting up a business or sending regular payments abroad, it may often be cheaper to use a reputable currency broker. In most cases, you will have to open an account with the company and you will need to fund the account using a bank account or credit card. However, the benefits of using such companies means you can make specific arrangements for your individual needs such as fixed exchange rates for a set period.
Gokul Jayapal has a master’s degree in biological sciences and currently works and lives in Toronto. A freelance writer on money and finance, he is an investment junkie who trades stocks and options part time. He can be reached at [email protected].
Courtesy: CanadianImmigrant.ca