February 12, 2017 Leave a comment
Want to save big on your international remittance? With every passing year, the remittance industry is growing exponentially. In the year 2015, approximately $581.6 billion got transferred internationally whereas in 2016, it was around $610 billion. This growth has led to money transfer agencies making more profit.
If you wish to save money each time you initiate money remittance to India, here are a few tips and tricks that you can follow:
It is recommended to always check the mid-market rate or the interbank rate when sending money. There are several independent sources from where you can find this rate such as, Google, Yahoo Finance or Reuter. By finding the mid-market rate, it will be easy for you to judge if the exchange rate being offered to you is competitive or not.
The next tip that you can consider is checking the remittance fee being charged by the money transfer agency. It is recommended to check and compare charges like conversion fee, commission and so on. Also, you must get an estimate of overall exchange charges before making a transfer. To get transparency for the money transfer, it is advised to check the money transfer time, pay-in and pay-out options along with several other exchange parameters on a remittance comparison platform.
You should get a clear idea about the fee slabs. At times, money transfer agencies charge a certain fee if you send a certain amount. If there is a certain threshold, try and send an amount that is above the threshold to get maximum value from your money transfer.
Another important step towards ensuring a hassle-free, cost-effective remittance is to compare money transfer companies. It is very important to choose a reliable platform for sending money. For instance, if you are sending money from UK to India, you not only need to get the best foreign exchange rates to UK but also ensure that the agency you are sending money through is licensed and reputed. It helps to read reviews of money transfer agencies and make an informed decision.
There are some agencies that offer a better rate when you opt for online bank transactions while other agencies offer better rates if the sender is using a debit card for the transaction. So make sure you are checking which option is more cost-effective. Also, you should compare the pay-in and pay-out options. There are several websites on the internet from where you can compare rates being offered by different service providers.
You need to make sure that you are paying only for the transfer speed you want. For instance, there will be times when you would want the money to reach the recipient immediately. Such remittances will be more expensive. But if you are not sending money in an emergency, ensure that you don’t pay the high fee for a quick transfer. This makes it important to be aware of how much your money transfer agency is charging you for each transaction.