There are many reasons for transferring money abroad. Some use international money transfers to complete overseas investments, while others are purchasing property in other countries. Paying for services or products outside the country or maybe supporting a family member who lives overseas. When most people think about the best way to transfer money internationally, they think of going to a bank to complete the transaction. Yet transferring your money overseas with a bank transfer is often not the best option.
Why People Choose Banks for International Money Transfers
Money tends to be a difficult topic for people to discuss. They fear losing it, and the idea of allowing a new company to transfer large amounts of their money abroad is nerve-wracking. Banks have been around for centuries. People automatically associate all things financial with banks. They appreciate the security that banks advertise. Banks and other financial institutions are typically insured, either by the government or by a separate entity that regulates their work. This leads people to believe that your money is always safe with a bank – especially during a transfer where you’re depending on the bank to get your money safely to the account or person you’re transferring to. However, despite the security they advertise, banks are not always your best option for transferring money internationally.
Do Banks Play Fair?
Banks have built advertising and marketing platforms on an idea of trust. Built up in our social culture over hundreds of years. They use this trust to exploit our lack of knowledge about the details behind money transfers. Often taking high commissions and handling transfers with overpriced currency exchange rates.
This is upsetting to hear, yet we shouldn’t be surprised. Banks are, after all, businesses. Their goal is to make money from their clients and account holders. For a long time, banks have been the only option when it comes to international money transfers. Giving them the power to raise fees, and take advantage of the situation. Particularly when clients want to move their money around the world.
Overseas Money Transfers: The Alternatives
Instead of using a bank for your international money transfers, consider using an online company. Despite what big banks would have you think, these online money transfer companies are safe. In fact, they’re often insured as much as banks are when they handle your funds.
Money transfer companies move money from your bank account to whoever you’re transferring to overseas – and it all happens online. Money transfer companies don’t have the same operation costs as brick-and-mortar banks. This means they are able to pass the savings on to their clients. They also use the current exchange rate, rather than a marked-up exchange rate. Ensuring you’re getting the most out of your money. Finally, money transfer ompanies are quicker than banks – which makes them even more appealing.
How Online Money Transfers Save Money
Online money transfer companies are less expensive to use than traditional banks. As the majority of money transfer companies are transparent about their fees. Often bank fees are not so clear. This allows you the opportunity to shop around when looking at transferring money to Spain. You also have any unpleasant surprises when you transfer because you’ll know what fees will be taken out before completing the transaction.
Their fees are typically lower than the fees you find at banks. Partly as traditional banks have high operation costs and pass those fees onto consumers through comissions. Money transfer companies offer additional cost saving options. For example, if you transfer a larger sum of money, they may waive the transfer fees completely. Some companies offer an exchange rate watch option. This allows you to get the optimal rate for your transfer. This is an especially useful hack if you try to budget your next trip abroad.
Banks May Not Be Your Best Option
Big banks have always had the international money transfer market cornered. That’s no longer the case, there are many money transfer companies which support a wide range of currencies. Offering transfer services at a significantly lower rate. Although it’s tempting to stick with what you know and use a bank for your money transfer, Remember you’ll be losing more money than you need to on each transfer.
Your money is just that – yours. Online money transfers sites are working to ensure you keep as much of it as possible in international transfers.While banks are taking a large chunk of it for themselves. Next time you need to complete an international money transfer?
Research a few different money transfer companies and keep more of your money.
