Sometimes you will need to transfer money to a foreign destination for a variety of reasons, such as buying property abroad, paying tuition fee for international studies, investing in foreign assets etc. Here are some of the factors to consider while choosing a method to transfer money to a foreign destination.
- Choose How to Transfer Money
There are a wide range of choices to transfer money abroad. You can choose online or offline methods. You can transfer money online using the wire transfer offered by banks and currency exchanges in your city. Offline modes to transfer to money are cheques and bank drafts. Online modes are faster and safer when compared to offline modes. However, you have to be cautious while choosing a bank or currency exchange for online money transfers. Choose an institution with proper systems in place.
- Analyse the Speed of Disbursement
While choosing your preferred mode of transferring money, keep the speed of disbursement in mind. Online modes like wire transfer and NEFT are quicker when compared to offline methods. Some online transactions can be done on real time basis.
- Check the coverage offered
Before choosing a bank or a currency exchange to transfer money, enquire about the coverage offered. Check whether the institution has branches or partnership with the local institutions at your destination. Check whether the currency you want to offer is accepted by the bank or the exchange.
- Compare cost of Service
While choosing a bank or other institutions to transfer money, factor in the cost of services. The cost of offline transfer is very less when compared to the cost of online transfers. Moreover the rates charged by banks are competitive when compared to the rates charged by money transfer services. It is always advisable to enquire about the charges and fees before you choose a bank or an exchange.
Convenience is another factor to consider, while making payments in foreign exchange. Choose a mode which is convenient to you as well as the receiver. Check the maximum amount that can be transferred using different modes and choose a mode that suits your requirement.
Considering these five factors before choosing a mode of transfer for foreign payments will help you to get a better deal. Always choose a reputed bank or a trusted currency exchange for online transfers.