There are various modes of transferring money overseas. Amongst several methods of sending money such as wire transfer, many people are confused over using banks or the various money transferring companies to achieve maximum convenience. The wide variety might complicate the decision of individuals. However, it is vital to take the right decision. One should also consider several factors while transferring money like reliability, security, exchange rates, transfer time, transfer fees, and so more.
When it comes to sending the money internationally, the first option that comes in the minds of several individuals is the bank. However, the truth is that while banks might offer several benefits, it might not still surpass certain specialized features offered by the money transferring companies. Here are some facts to take into consideration to understand the importance of each of these methods of sending money overseas.
Banks are Usually More Expensive
Banks usually generate lower exchange rates for transferring your money internationally. In addition to this, banks also have higher fees for wire transfers that generally range from $20 -$40 per transaction. Some banks might offer international wire transfers with no wire fees at all. However, there could be several hidden costs as well as service charges that might be too difficult to identify. Also, one must also not forget to calculate the final cost which should include the fees charged by the receiving bank at the other end of the transaction.
Banks Often Ask for More Information
Some banks do not even provide support for online wire transfers. Therefore, in such cases, you might have to visit the offline branch of the particular bank. The banks would mostly ask you to fill out a detailed wire transfer form. It needs to be updated with additional information every time you would send money overseas. The banks might also ask you to present your identity details for further verification.
Banks Offer Safer Money Transfers
As the bank transactions are verified through various stages and regulated under the government authorities, such transactions tend to be more secure. The money transfers through banks are free from the threat of any potential hacking or breaching of confidential information. Therefore, many individuals prefer banking transactions for safety purposes.
Money Transfer Companies are Beneficial for Smaller Transactions
Various international money transfer companies like Western Union, MoneyGram, and Instarem and so more are better equipped for handling smaller amounts of money being sent overseas. Some banks might be offering specialized remittance programs that come with no transfer fees for smaller amounts. However, you might not get the desired exchange rates in this case.
Banks Might Require You to Have an Account with Them
With several banks, the individuals who wish to transfer money overseas have to be an existing customer. By being an existing account holder only they are allowed to utilize the wire transfer services of the specified banks. In case you do not have an existing account with such banks, then you might have to open a new account for initiating the wire transfers.
Bank Transfers might Take Long
In case you are searching for quicker methods of transferring money overseas, then you might consider choosing the money transferring companies. This is because the bank transactions might take some time to reflect on both the accounts. Due to the lengthy process of verification, bank transactions are slower in comparison to the money transferring companies. The money transfer companies like Instarem would reflect your successful transfer of money within a span of one day itself.
If you wish to transfer money internationally, then you must do some research on your part about choosing the best scheme for yourself.