Are you planning to send money overseas? Whether you are sending money for business or personal reasons, it is important to choose the right money transfer service. Many people prefer to use the bank for remitting money internationally. Banks are safe but not a cost-effective option. If you have to send money on a regular basis, remittance through a bank can burn a hole in your pocket. It is important to choose a remittance mode that helps you save money and the recipient gets maximum of what you send.
There are several parameters that you need to consider when sending money from one country to another. If you are confused about which mode to choose for remittance, these parameters can help you make the right choice:
- Coverage is the second factor that should be considered by NRIs when they send money to India. Not all financial institutions or banks offer national wide coverage. Even if they do, they charge extra money for the same. Most banks deal with limited currencies such as Euro, US Dollar and Pound and some only entertain foreign currency cheques. There are some money transfer service providers who offer a foreign currency non-resident account scheme that makes it easy for the remitter to send funds in foreign currency to local currency.
- Speed with which your money will reach the recipient is very important. Most regular money transfers take at least a few days or one week. So if you want the money to reach quickly, you will have to take the speed of remittance into consideration. You will have to opt for a service through which money will reach the recipient within few minutes or one business day. Besides looking for the speed of disbursement, you also need to know how much the service provider will charge you for quick service.
- Third factor is the cost of money transfer service. You need to know that remittance service charges depend on the mode of transaction you have chosen. It also depends on the transaction provider. It is recommended to check the service costs and charges levied by service providers before choosing one. For instance, the charges for SWIFT mode of transaction and demand drafts will be different. You need to find out rates being offered by different service providers. There are several websites on the internet through which you can see rates offered by different agencies in one place. Comparison will ensure that you get the best rates.
- You also need to take convenience into consideration when sending money. Whether you initiate a wire transfer from USA to India or choose any other mode of remittance, make sure it is convenient for you and the recipient to send and receive money. For instance, options like online payments or offline transactions can be feasible for your remittance needs. Besides choosing a convenient mode, you should also consider the amount of the transactions before choosing a payment mode.