Are you paying too much when you send money abroad?

By: Kashif Chaudhary

Date: 17 October 2019

A businesswoman sends wages to her family abroad and saves on the money transfer.As the internet and other technological innovations continue to break down geographical boundaries, we are seeing an increase in global citizens who are employed and earning in one country while living or supporting family in another.

As a result, more and more people are looking for safe and reliable ways to transfer money from one country to another. For example, employees working in the UK and wanting to send money to Pakistan to their family can do just that, quickly and safely.

Sending money abroad is easier today than it has ever been. With so many options open to you, it's possible to move money from one place to another using the right money transfer service for the job - whether your priority is safety, cost or speed.

Here we discuss your options, and how to get the best deal possible.

Sending money overseas - your options

You may think that banks provide the cheapest and most secure service when sending money overseas. However, with the increase in demand for money transfer services, a lot of alternative providers have established themselves as competitors.

In general, these are your options:

Banks: The most common and known method of wiring money is through a bank transfer. While it is undoubtedly a highly safe and reliable option, going with the bank is not necessarily the cheapest way, and may not be the fastest, either. Banks often offer weaker currency exchange rates, charge higher fees and limit your options for sending and receiving cash.

Money movement and payment services: The fastest growing and increasingly popular method of transferring money is through dedicated services that offer affordable rates and fast transfer speeds, such as Western Union, MoneyGram or PayPal.

These companies are in competition not only with banks, but also with each other - so may offer extremely good exchange rates, lower fees, and faster money transfer. You can wire money from your bank account, your credit card, or in cash.

Cheques and money orders: Although it's not as common as banks and transfer services, you also have the option to obtain an international cheque from your bank and send it overseas. However, this can slow the process down considerably, and the recipient may also have to pay a fee when they cash the cheque.

Cost-effective tips when sending money overseas

As discussed, every bank and transfer agency has its own schedule of charges and fees. Many people don’t give much thought to this when sending money, and end up paying through the nose for the service - resulting in less money sent to their relatives.

Here are some tips to keep in mind.

1. Send money in bulk

We all know that buying things in bulk can work out a lot cheaper in the long run. Money transfer works the same way.

If you regularly send money abroad, instead of doing it every week, try saving a larger sum of money and sending it on a monthly basis. You will save on the per-transaction fee, and may get a better conversion rate overall on the larger amount sent.

2. Go with an international money transfer company

As discussed, banks charge a lot of money for transferring funds from one place to another. By using the services of a specialist agency, you can often save on fees.

3. Keep a keen eye on the market

If you are sending a large amount of money and are in no hurry, another useful tip is to keep an eye on currency exchange rates. Many payment companies will offer to notify you when there is a currency fluctuation in your favour.

By waiting for a more advantageous exchange rate, you can minimize any unnecessary losses.

Sponsored post. Copyright © 2019 Kashif Chaudhary, professional blogger

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