Living and working abroad is a popular choice for many people. In fact, more than 8 million people board airplanes daily to travel to different places, according to International Air Transport Association. And majority of those choose to stay at the country of destination to work or search for a new and different life.
If you’re one of those people who travel abroad for work, chances are you want to send money back home – whether to support your family, invest for some properties, or fund your SMSF or other retirement accounts. Whatever you purpose, this simple guide will help you understand what you need to do to make out of the most of your money transfer. Remember, in these days, you can never be too safe. It’s very crucial to explore all the things needed to find out the best ways to transfer money, particularly if you’ve never done it before. Otherwise, you’ll soon find yourself out of pocket.
Beware of hidden charges
With the advent of new technology, sending money abroad is now convenient and fast. But of course, along with these convenience and fast payments come a much higher cost.
The cost when making international payments usually falls into two major categories: the fees and exchange rates. So before you send any payments abroad, you would want to check both of these categories first. Fees are relatively straightforward to search out and may include transfer charges and overseas bank receiving fees. You can check the amount by visiting the website of the bank or transfer company of your choice or asking them personally. Amounts may vary but they typically range from $15 to $30.
Exchange rates are much more complicated than service fees, because they tend to change rapidly. If you want to get significant amount of savings, it’s crucial to check the interbank or wholesale rate of your currency before you exchange it. You can find it on Google, Yahoo finance, other online currency services, and even in the media. In this way, you’ll be able to find which overseas money transfer is best for you.
Remember, most banks and transfer companies don’t use interbank rates. Most of them add varying amounts to the exchange rate to make money on the transfer. It’s important to compare providers properly to get the best deal. In addition, beware of those companies who claim to offer “no service fees” but add a large margin to the exchange rate to get more profits.
Choose the best provider
There are several ways from which you can transfer money overseas, but the question is: which service should you choose? Well, this depends on your specific circumstances. When it comes to transferring funds internationally, there are 3 common options to choose from, and these are bank-to-bank transfer, online money transfer, and cash transfer.
Bank-to-bank money transfer is the easiest and probably the safest way to send money abroad. However, the downside is that the fees are relatively high. Most banks are known to charge more than $30 per transaction. This is not to mention the large amount of margin they incorporate in the exchange rate. The amount may vary depending on your bank, but usually they add 3-6 percent margin on top. In addition, it often takes a few days for your money to go through. Bank-to-bank transfers can probably be the best option if you’re sending money regularly or you don’t have an access to internet.
Online money transfer services, like Paypal and Zoom, are probably the quickest and cheapest ways to transfer money internationally. The cost of their service usually depends on the amount of money you’ll transfer and the payment method you’ll use. Typically, fees decrease for larger transactions, but it’s important to know that you’ll still be charged an exchange rate if you’re sending money abroad. If you want to send your money as quickly as possible, then online money transfers are a great choice. However, you need to be comfortable in making financial transactions online, and have to be more cautious as online transactions are prone to security breach and hacking.
Another way to send funds internationally is with the use of cash transfer. Companies, such as MoneyGram and Western Union offer this service. These companies have a storefront or service counter in different locations where your recipient can collect the amount that you’ll transfer. The great thing about this service is that it’s very quick and easy. However, the downside is it can be expensive. If you’re sending money overseas, you will also charge an exchange rate in addition to the service fees. Fees may vary depending on the amount you’ll transfer, the speed of transfer, and the location where you plan to send your money.
There’s no standard rule to which money transfer service is best. As mentioned, the right one will depend on your specific needs and circumstances. Don’t be afraid to compare and investigate your options. That’s probably the only best way to make sure that you’ll not give away your hard-earned money to someone else.