If you have ever done a wire transfer, you’ve almost certainly been charged an international wire transfer fee. These fees are inconvenient and can be quite costly.
The question is, what can you do to reduce or remove your international money transfer costs? How can you get the speed, security, and convenience you expect from your bank without paying through the nose to send money with them? Fortunately, we’ve got the answers.
We have outlined the best methods for avoiding international wire transfer fees.
High International Wire Transfer Fees With Bank
Banks are not the best way to send money abroad. Why?
Because they have exorbitant wire transfer fees. Here are the fees charged by some of the most popular banks in India when sending money abroad:
Axis Bank: 1% of Transaction Amount – INR 5500 + (0.1% of the Transaction amount)
HDFC Bank: INR 45 – INR 10,800
Digibank by DBS: 0.18% of Transaction Amount – INR 10,800
This isn’t the only fee you’ll have to pay. Other hidden fees are also charged in the exchange rate they offer.
When you add the international wire transfer fees to the exchange rate, you would end up paying up to 5-7% extra for your international money transfer.
How to Avoid International Wire Transfer Fees?
So, if you’re not going to use your bank to make an international money transfer, what other options will you have? We recommend that you use a specialised online wire transfer service. These are customer-oriented companies that allow you to send money easily, quickly, and securely.
Using online wire transfer services is really simple. In less than 24 hours, you can open an account and begin sending money abroad. Normally, you can pay for your international wire transfer using your bank account or debit, or credit card. These online wire transfer services are fully regulated and super fast. In some cases, the money reaches the recipient within 24 hours and the recipient can pick up cash, get the money in their account, or even enjoy other methods of accessing the funds.
If you wish to avoid high international wire transfer fees, we recommend providers like HOPRemit, Wise, Western Union, and OFX. Here’s why.
HOPRemit
HOPRemit is India’s first full-stack cross-border Neobank. Its international money transfer platform namely HOPRemit provides a fast, secure, paperless and cost-effective option for international wire transfer. They provide the most Competitive Exchange Rates in the market meaning you can transfer money abroad at near-live exchange rates.
Unlike other international money transfer platforms, HOPRemit doesn’t levy high exchange fees. This significantly reduces the transaction costs of sending money abroad.
HOPRemit is also one of the Fastest Channels in case you need to send money abroad urgently. After receiving the funds, wire transfer instructions get processed immediately and money gets credited to the recipient’s account within 24 hours in most cases. HOPRemit provides complete transparency in the entire online wire transfer process. No additional or hidden charges are levied, while banks typically charge between Rs. 500 to Rs. 2,500.
The entire process is digital. Users create an account on HOPRemit’s portal and are on-boarded by conducting their digital KYC. They can then enter the beneficiary details and make the payment using an integrated payment gateway via UPI, Net Banking, or Debit cards.
The portal also automatically updates the status of the transaction which the remitter can observe by logging in.
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HOPRemit is also an RBI authorized service provider which lets you send money abroad in the most secure way. The documents and details provided at moneyHOP are encrypted using bank-level encryption to protect the customer against any possibility of a data breach.
While a typical remittance process involves making multiple visits to banks, a complex documentation process, high fees, HOPRemit can simply send money abroad with a few clicks at the best exchange rates.
The icing on the cake is moneyHOP’s ‘One Global Card’. This one card can be used across the globe to swipe, tap, online, or withdraw cash.
Wise
Wise is a financial company that enables International Money Transfers to several countries. It promises transfers at real-time exchange rates, without any mark-ups. You need to pay a certain fee for the transfer and the money is remitted to the recipient’s bank account within a couple of days.
TransferWise can transfer money abroad for cheaper than banks as their system is based on local bank account transfers. But they charge a fee between 1.99% and 4.42% for every transaction, depending on the route and the quantum of money remitted. Like sending $1,000 to India costs $8.94 in fees through TransferWise. The platform is easy to use. Their minimum payment amount for India outbound payments is INR 20,000/-.
They use real, mid-market exchange rates for each transaction with a mark-up. Also, Wise does not guarantee to be the cheapest way to send money abroad, but its price comparison tool lets you know that up front.
Western Union
Western Union is one of the oldest ways, after banks, to send money abroad. They are popular for their legacy and reach. You can either use the website, app or visit their brick-and-mortar locations for sending money abroad. They have branches in most countries of the world. They also offer a local withdrawal option.
If you have to send more than $5,000, you need to make the transfer through their OnlineFX website. One of the best features offered by Western Union is the use of cash or debit or credit card to transfer money abroad, which is directly deposited into the recipient’s bank account or can be picked up from the Western Union branch. They have also started to gain popularity in business transactions.
However convenient Western Union may sound, one should keep in mind that the transfers may take varying amounts of time, up to a week in a few cases. Paying online instead of the physical location changes the transfer limits and timing. Also, Western Union isn’t recommended for small amounts of transfers because their fees depend on both the destination and amount.
Western Union is one of the biggest companies for transferring money abroad in the world. However, a lot of people end up using their service without realizing the overhead fees involved in the transfer, especially for smaller amounts. Depending on the use case there are other more cost-effective options available.
Western Union is very expensive and charges a high percentage fee on the money you’re sending. Also, they usually use the retail/tourist exchange rates are typically higher.
OFX
OFX is one of the best ways to send money abroad. They have offices around the globe. OFX takes a small margin on the exchange rate when you send money abroad. They do not charge any additional fees apart from the margin on the exchange rate. Plus, OFX charges based on how often you use the service, so if you are planning to make frequent transfers, it could be a good option for you.
OFX has a minimum transfer of $250, so if you want to send anything smaller than this amount you will need another option. They set their exchange rates and charges for all transactions below $10,000. Almost 80% of their international money transfers are completed within 24 hours of receiving the payment.
OFX is a good option to send large sums of money as their exchange rate fees go down for larger amounts. They let you deposit money directly into the recipients’ bank accounts, and are most attractive when transferring amounts larger than $10,000.
Final Thoughts:
Depending on how you initiate a transfer, some banks charge different fees. Some banks, for example, will charge less for online wire transfers. If you request the wire transfer in person or over the phone, you may be charged an additional service fee. You can also request that funds be transferred in US dollars rather than foreign currency, as the bank may charge you higher to convert the funds into the local currency when you receive them.
If you make recurring international transfers with the same recipient or sender, some banks may charge you less per transaction. Inquire with your bank about how to set it up, either online or in person. There may also be banks that cater specifically to international students.
Avoiding banks entirely may be your best choice for saving money on international transfer fees. Numerous services enable you to send money internationally for a low fee. HOPRemit, for example, charges a small flat fee to send money and converts money at the exact mid-market exchange rate.
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