When you need to send money across the world, it’s tough trying to make the decision between using a bank or a money transfer company.
Need some help? Here are five things to think about before making that decision.
1. Fees
How much will you be charged to transfer your money internationally? This is always a concern. Banks charge a premium for international money transfers because it’s not their key service and requires more work than a domestic payment. The receiving bank also charges an additional fee for their part in crediting the recipient account.
Money transfer companies, on the other hand, specialise in offering this one specific service. They therefore have to be competitive in order to survive. Most charge a flat fee and have banking relationships in place to ensure that there are no nasty receiving fees when the money reaches its destination.
To compare the two: if you were to transfer £1,000 from the UK to South Africa using your bank, you may be charged between £25 and £40. A receiving fee of up to R500 will also be charged. If you were to do the same using a money transfer company, you will be charged a flat fee of around £10 and no receiving fee.
2. Exchange rates
Are you sure you’re getting the best exchange rate? Banks and money transfer companies have different ways in which they exchange currencies. Because money transfer companies offer a specialised service, their exchange rates are often far better than the banks because of their experience in the market and the way in which they exchange money for you.
3. Time
There may be various reasons why you need to transfer money (and sometimes you need to do this quickly). Maybe you need to send money back home to a loved one, pay a bond or even buy property.
If you need to move your money in a hurry, then money transfer companies are your best bet. Many will get your money to where you want it to be within three working days, and sometimes even within one day. Banks, however, often take at least three days, and regularly up to eight working days.
4. Specialised service
If you want the best possible service, you would use a company with specialised knowledge, right?
Bank tellers usually deal with more than just money transfers on a daily basis and may not be able to offer you specific advice. This could lead to unexpected delays in transferring your money.
Money transfer companies, on the other hand, deal with money transfers every second of the day, and their consultants have expert knowledge on the matter. This ensures that you get exactly the advice and guidance you need for a problem-free money transfer.
5. Convenience
When comparing banks and money transfer companies, there is a big difference when it comes to convenience.
If you’re going to use the bank to transfer your money, you need to physically go into the bank, maybe stand in a queue and go through a number of processes before the ball starts rolling.
Good money transfer companies provide you with an easy to use online portal which allows you to transfer money with a touch of a button. Systems like this also let you check any past transactions you’ve made and track your money wherever you are. And, depending on which money transfer company you choose, you can transact 24/7.
At the end of the day, your decision will be based on your personal circumstances and what works better for you. Take into account all the above factors and consider whether the service you’ve chosen offers you the best options for each.
1st Contact Forex are specialists in speedy, secure and cost effective international money transfers.
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