Most of us are doing overseas money transfer these days. It may be for the family or some emergency or just a plain gift.
Are you getting the best value for your money when transferring cash internationally?
This indeed is a bitter truth. People often send money to their friends, relatives and business counterparts but are pained to see lesser amount reaching at the other end.
So, are you looking for alternatives?
Well a lot of people are sailing in the same boat. If there are any questions in your mind regarding the same, do read the answers below and save your money.
What is exchange rate and is it real?
Exchange rate is the rate at which one currency is converted into another. The word “real” holds huge importance here as it is often seen that the rate you see before transferring money is different from what you get later on. Surprised? Don’t be. The rate that you may have seen online could be the inter-bank rate. What is it? Inter-bank rate is the rate that the banks employ to transact money between one another.
But they use a different rate when they do transaction of your money. It is here that they make some money and hence give lesser value for your money. Do double check the exchange rate, for you it should be the customer rate. You can also call your bank to learn about the individual rate. There is absolutely no harm in it.
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Are there any hidden costs?
Besides the exchange rate, the other thing that should bother you is the fee that some banks tend to extract when you transfer money overseas. The worst thing about this fee is that it is never advertised and you may not know about it until the money gets transferred to the other account. Well, there are certain facts for you, to consider. This fees depends on the amount aka size of money you are transferring and also whether it is done via phone or through the branch or via internet.
Therefore, it is advisable to transfer a large amount, sometimes the fee in such cases gets reduced due to the big amount. But do remember when you transact large amount, it is the exchange rate that hits you the hardest. Work your way out.
Should I opt for another bank?
Some banks offer really good rates to a selected few customers like corporate customers. So, if you have a business, small or big, pick the bank that offers best value for your money. There are two alternatives. When studied deeply it was found that out of the two international money transfer specialists are better than remittance providers like Western Union. The latter charge a hefty sum which can cost you drearily. Remittance providers are good for transferring small amount to family and friends and is often used by people in the developing countries for the same purpose.
On the other hand, when transferring money through international money transfer specialists from one account to another, the process is pretty quick, prices are transparent and the fees too is lower with more competitive exchange rates. But before doing that you should know a few things like International bank account number and the Bank branch codes for online money transfer. Double check before sealing the transaction. If you commit a bluff here, you know what can happen. So beware.
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Does time play any role?
You may be disappointed to read this but sometimes you are just lucky enough to get a good exchange rate. But there is no fixed time or date when the exchange rates are low. Even if there are some predictions made, do not believe them. If you are waiting for the right time, you are wasting your precious time.
Anyhow, if you can wait and no emergency transfer is to be made, then you may wait but there is no assurance whatsoever that you will get a good deal. Otherwise the right time is now, with the world economy going up and down, don’t wait for that lucky time or lucky tomorrow. Transfer it now. And please don’t believe those predictions.
Hope it helps you in saving your money.
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Author Bio:
As a reader latest in the sphere of finance, banking and investment capture my interest. I combine my interest and love for writing to cover financial, banking and money related issues faced by the millennials today. Besides this, I also work for Bankingdb.com, a complete online database that contains list of worldwide banking codes used for national and international banking transactions.
