Tips for Sending Money Overseas
It may seem simple and straightforward to select a money transfer service to send money overseas, but there are many important factors you must consider before doing so. It is crucial to monitor the fluctuating, foreign exchange rates closely and be well-informed of all transfer fees before initiating a money transfer to India. Below are some important tips that we have complied to help guide you in making an informed decision and help you save time and money with the international money transfer process.
Here are some easy ways to save time and money with international money transfers:
- Compare different money transfer services. It only takes a few minutes. Comparing will help you find the best exchange rate, lowest transfer fees, and most reliable service.
- It is more cost-effective to send a single, large amount than multiple transfers of small amounts, as transfer fees can add up each time you initiate a money transfer.
- Be fully aware of transfer limits. The transfer fees, you may incur usually depend on the amount of the transfer.
- Avoid sending a large sum of money using a service that caters to smallera mounts. Consider sending large sums through Foreign Exchange Companies that can provide better exchange rates and fees.
- Be mindful and pay close attention to the total cost! The incurred fees may be low, but the exchange rate could be high. A higher fee could be worth it if the exchange rate is better. Make a true comparison by calculating the final amount the recipient will obtain. For Example: Company A offers an exchange rate of $1= Rs. 60 with a $2 transfer fee, and Company B offers $1 = Rs.60.20 with a $4 transfer fee. If you are transferring $500 dollars, Company A would send Rs.29,880 ($500xRs.60 - $2xRs.60). Company B would send $29,859.20 ($500xrs.60.20 - $4*60.20), which is lower.
- Don't pay additional fees to expedite the transfer unless you really need to. If the funds do not absolutely have to be wired within a few hours, choosing a standard transmission will save you money on unnecessary charges.
- Watch out for fluctuating or indicative rates! The foreign exchange market never sleeps, and exchange rates change by the second, significantly plummeting or soaring in a short span of time. Being observant of rates that seem to fluctuate by a few pennies can seem pointless. On the contrary, keeping a close eye on the rates will save you a lot more money in the end. Be smart when it comes to your personal finances.
- Taking advantage of online ACH transfer services can save you a lot of time, and it is quick and easy.
- Remember to ask and be informed about the procedures, alternative options, and liabilities you may face in case your funds are not transmitted promptly by the specified date or time.
- It is important to double-check the refund policy when arranging a cash pick-up in case the recipient is unable to pick up the funds on-time.
- Confirm whether or not the recipient will be required to pay a receiving fee or any miscellaneous service charges which can be levied on the transaction by the recipient’s bank.
- Transferring funds utilizing your credit card can get quite expensive. The transfer fees are usually much higher than a typical ACH/wire transfer. Do a quick cost-benefit analysis and confirm all fees with the remittance service so you don’t get any surprises. Unusually high transfer fees may also apply to transactions made over the phone.