Simple Saving Tips When Transferring Money to the U.S.
There are vendors to evaluate. There are documents to sign or online verifications to make. There are currency rates to be checked. Transferring money overseas can be time consuming and tricky. But what it shouldn’t be is expensive. Thankfully there are some tried-and-true methods that you easily master in order to save a buck here and there.
So, if you’re overseas and thinking of transferring some money to the U.S., here are some no-nonsense tips to make your money go further.
Instant or soonish?
Do you really need the money to get there straight away? If so, great. But if it doesn’t need to arrive quicksmart, investigate later delivery options that might get the money there in a few days and save you money on unnecessary charges.
Check for tiers
Are there different transfer fees associated with different dollar sent amounts? For instance, if you want to transfer over $5000, will that cost you more or less than sending, say, two transfers of $2,500? Know the transfer tiers — and limits — before you click “send.”
Think twice before setting up automatic transfers
Sometimes it’s beneficial to set up weekly or monthly money transfers home. But remember, exchange rates can plummet or soar in a short period of time. Therefore, know that auto-transfers might come back to haunt your wallet if there are some adverse currency changes that lead to unexpected fees.
Avoid the minefield of hidden charges
Simply put, hidden fees are annoying. So, before you hand over your hard earned cash, read the fine print. Be on the lookout for any sneaky fees that come back to bite you (as the sender) or your family member, friend, or business partner (as the recipient). For instance, will the recipient’s bank charge them a receiving fee? Send the company an email, call them, ask them for a call back — do whatever it takes to get a straight answer about how much the total cost of a transaction will be.
Track the rates
Over time, currencies strengthen or weaken. If you have a long term view of what you might want to transfer internationally, consider using a website that’ll help you keep an eye on the fluctuations of the currency you want to transfer your money in.
How safe?
Is the service you plan to use insured, regulated, and licensed to perform foreign exchanges or money transfers?
Think about how often you want to send money
With more frequent transactions, the fees will pile up. There might be a trade-off between sending more money over fewer transactions, compared to less money over more transactions.
Send USD to USD
Is there a way to send U.S. dollars from overseas to the intended recipient in the U.S.? If so, that might avoid some currency conversion fees. Of course though, not all non-U.S. financial institutions and foreign exchange companies will let you send greenbacks to greenbacks, but it’s worth checking out, just in case they do.
Walk-in or website?
Some hesitancy about using money transfer solutions that are solely online might come from people seeing currency exchange kiosks at airports and near major tourist attractions, and thinking that they might be safer or cheaper. Also, for years we’ve been bombarded by advertisements by the big banks that we should use their services rather than, say, a startup digital-only company that does exactly what they do, sometimes even in a more efficient and affordable way. So, instead of just believing us, why not check it out for yourself? That is, compare what a transaction might cost you if you walk into a foreign exchange or money transfer store and see for yourself what they offer.
Last, but not least …
Of all these tips, perhaps the most important is this: Don’t pay for something that should be free. With numerous established and reliable online foreign currency and money transfer providers, there’s no reason you should pay a cent more than you have to.
By Lee Bob Black.
