Top tips to save money on international money transfers

Whether you want to transfer money from India to Canada, the USA, or anywhere else, sending money abroad can prove to be confusing and expensive if you have little or no experience of it. Although sending money abroad is straightforward, there are certain things that you have to consider.

Before sending money overseas, it is imperative to monitor the fluctuating foreign exchange rates, know the process of international money transfer, and the transfer fees. The cost of sending money abroad depends on the amount of money you wish to send, the location of the transfer, and how quickly you want the funds to reach the recipient.

We have prepared a list of top tips that you can avail of to save money and time while making an international transfer online:

  • Compare service providers

Not all money transfer service providers offer the same foreign exchange rates and transfer fees. You will need to make a comparison of all the service providers and their services. Make sure to choose a service provider that offers the lowest transfer fees and most transparent foreign exchange rates to seamlessly transfer money from India to Canada, the USA, etc.

  • Find out the transfer limit

The transfer fee depends on the amount which is being transferred. Also keep in mind of the transfer limit depending upon the rules and regulations of the Reserve Bank of India (RBI). Sending money beyond the set limit can cost you more in transfer fees. So, make sure that you know the RBI norms before sending money overseas.

  • Do not expedite the transfer time

Unless you have to send money to cover the cost of medical treatment, it is better to avoid expediting the transfer time. You will have to incur additional fees if you do so.  So, unless the funds must be transferred within hours, make sure to follow the standard transfer procedure.

  • Keep an eye on the fluctuating foreign exchange rates

Foreign exchange fluctuates every minute of the hour, and paying attention to such changes could help you save money. If the foreign exchange rates are not in your favor, wait for a day or two to get the best rate available. Also, choose a service provider that determines the value of a currency based on live market data.

  • Avoid transferring funds through a credit card

If you want to transfer money from India to Canada or anywhere else, you have to understand that credit cards are not the best option to avail of. They are the most expensive way to make international money transfers than wire transfers. The transfer fee on credit card translation is generally very high.

  • Consider bank draft

If you are not in a hurry, then you can send money through a bank draft. You will have to visit your bank to draw a bank draft in the recipient’s name and then courier it to their address. The receiver will submit it to his bank and get the money when it sits in his account. Generally, it takes about 15 days for the funds to reach the recipient, but it costs less than other options.

  • Send large sums of money through forex companies

It would be wise to transfer a large sum of money through a forex company rather than sending multiple smaller amounts. Sending a large sum of money can save you in transfer fees. Instead of paying multiple transfer fees, you will have to pay one transfer fee.

  • Carefully read the refund policy

Sometimes, the recipients are unable to receive the money on time, due to which the transfer amount ends up in the pocket of the service provider. So, make sure to choose a service provider that ensures a complete refund of your money in such cases.

In short

Before you transfer money from India to Canada, run a cost-benefit analysis and figure out all the fees involved to avail of the best benefits and significantly lower the total cost.

Comments are closed