Are you wondering if you are losing money on every international money transfer you make? Worry not, check this guide that offers you smart tips on getting the most out of your cross-border money transfers.
Whether you are a student studying overseas, or an NRI living and working abroad, there are plenty of situations where you have to send or receive money to and from India. While traditionally, international money transfers were done using cheques, demand drafts and money orders, these methods are considered slow, insecure, and sometimes even impossible.
Here, in this guide, you can find the best tips and tricks to transfer money across borders in the most secure and affordable way possible.
How do International Money Transfers Work?
As the term implies, in an international money transfer, money is sent from one country to another, and it involves foreign exchange. For instance, if you are sending money to India from the UK, your GBP is converted into INR before it reaches your receiver.
Several service providers provide international money transfers for a fee. Banks, high-street money transfer providers, foreign exchange companies are a few examples.
In all these services, you have to open an account with the service provider. Deposit the amount you want to transfer in your local currency. Add the beneficiary details – bank account, name, contact details, etc.
You then initiate a transfer. The service provider converts your deposit into the receiver’s local currency, using applicable exchange rates, charges a service fee, and transfers the amount to the receiver’s account. The receiver can cash it at his/her end.
Tips to Consider before Initiating International Money Transfers
You cannot choose the first service provider you come across. Instead, it pays to do your research, comparing the costs of different services, so that you can pick the best choice that offers the most affordable rates and convenience. Here are some factors to consider:
- While comparing transfer service providers, look beyond the exchange rates. Make sure to consider other factors like hidden fees, convenience and customer support, and service, so that you can rely on the service provider if something goes wrong.
- Timing is crucial. If you need to send money online to India immediately, then you can go ahead. Just compare the current exchange rates and choose the service provider who transfers your money in the shortest possible time. On the other hand, if it’s a regular transfer, then you need to track the history of exchange rates and initiate the transfer when the exchange rates are favourable to you.
- Be aware of hidden fees. Sometimes transfer service providers may mislead customers with false advertisements like “No service charge,” but add hidden fees. So, make sure to do your research to avoid falling into such traps.
- Keep an eye on mid-market rates. This is the exchange rate used by banks/transfer service providers when they transfer money between themselves. However, this rate is not available to customers. But, by tracking this rate, you can find out the mark-up charge offered to you. You can find the mid-market rate by using sites like Reuters, XE, and Google Finance.
- Security matters. If a transfer service provider offers a rate that is too good to be true, then it’s most likely not true. Make sure to choose trusted partners, so that your money and other personal details remain confidential.
Wrapping Up: Do your Homework
A little research and prior planning can help you find the best international money transfer services. Consider the pros and cons of different transfer options and choose the right choice that works for you. Remember, that it’s your hard-earned money, so spend a little time scouting around to pick the best transfer provider who offers you security, reliability, and convenience.
