Annually, an estimated 6 million households in the United States send more than a combined $ 1 billion abroad. Whether funding for family or friends, or to buy international assets, it's often difficult to send large amounts of money. With so many options available, one needs to consider the speed, support and costs of the various methods provided by financial institutions for sending and receiving funds. Here are five of the best and safest ways to send large amounts of money overseas.
1. Bank-to-Bank Transfer
Some banks allow people to take money directly from one bank account and send it to the recipient's bank account. This type of transaction can be arranged online, by telephone or in person at the sending bank. They may have fees depending on the institution, and account numbers and routing for sending and receiving banks are required. Some banks offer special money transfer programs to transfer slightly smaller amounts. Bank of America, for example, has a program whereby funds can be sent to 5,700 locations in Mexico free of charge. However, in cases like these, it is important to look at the exchange rate, because even though fees may not be charged, the institution can make money from scattered transaction fees.
2. Wire transfer
In addition, you can send large amounts of money from one bank account to another via wire transfer. This type of transfer is initiated through the bank officer at the sending bank who fills in the required form.
Wire transfers, for the most part, have to be done in person. There is a fee for this type of service as well, but wire transfers offer protection from both banks involved, so it's worth it. For people living in the US, wire transfers must be done before 5 p. m. EST for money arrived the same day.
3. Automatic House Clearing Transactions
Automatic Home Clearing Transactions (ACH) are a simple alternative to wire transfers and bank transfers. Similar to wire transfers and bank transfers, this type of transaction is electronic but uses a computer-based clearinghouse that acts as an intermediary to process the exchange of transactions. The Federal Reserve Bank, for example, is the largest U. S. ACH operator, processing 60% of all ACH transactions. There are no fees for this type of transaction, but they do require the two banks to be linked together. To do this, both parties must follow the bank's specific instructions.
4. Cash to Cash Transfer
If a person has a large amount of cash and needs to send it overseas, a domestic money transfer center can be used to transfer money to an international money transfer center. . Institutions such as Western Union, MoneyGram, and Ria offer this type of service.
Physical money is deposited in one of these money transfer centers. Domestic currency is converted to the currency of the destination country, and can be collected by the recipient at participating money transfer centers. In some countries, money can be sent to recipients at a residential or commercial location.
5. Prepaid Debit Card
There are several services that can send funds via prepaid debit cards. If this method is selected for sending large amounts of money, the sender can load the prepaid debit card with cash, and the recipient of the funds can withdraw it using the prepaid debit card. In some cases, a prepaid card can be used to make purchases just like a regular debit card. However, there is usually an activation fee or a monthly fee.