In the modern day of technology sending anything via snail mail seems to be going the way of the dodo. So it’s only natural that sending money using methods like cash, bank draft and cheque are following suite. This does not mean that these methods are not still viable options. If cost if your primary concern here are 5 ways that you can look into for sending your next money transfer.
Banks are the safest and most reliable way to send money, if you are simply transferring money from one account to another within the same financial institution your bank will do this for you for free.
Wire transfer is another service that banks offer when sending money to other financial institutions, across provinces, states or countries. Wires are one of the best options if you are sending a global money transfer. Sending money overseas requires the following information: the name and address of the account holder, information about the financial institution, and the SWIFT or IBAN of the recipient bank. International wire transfer rates will vary depending on your bank, but generally cost in the $30-$50 range.
Some financial institutions may also allow you to send money via an e-transfer. This is similar to the way that you would pay a bill online. You will still require a SWIFT or IABN for international transfers, in addition to the account holder’s name as it appears on their account. E-transfer is a great option when you are sending money to someone on a regular basis, you can even set up transfers to automatically send on a schedule. Rates for e-transfer will vary depending on your bank, but typically cost less than transfers done through a teller.
PayPal allows users to send money from one PayPal account to another. PayPal accounts are typically attached to the bank account or credit card of the account holder. It is free to send money via PayPal, but there is a charge to the recipient of 2.9% plus $0.30 per transaction. Fees decrease slightly for transfers over $3,000, while international transfer fees tend to be about 1% higher. If you are sending money in international funds be sure to keep an eye on the exchange rate as this may end up costing you some money in the end. If cost savings is important to you it’s essential to compare this potential loss with the cost of a wire transfer from your own bank, you would be surprised at times to find out that due to currency conversions, PayPal may be the more expensive option.
This may be seen as the old fashioned way, but if you are looking for the cheapest option possible (other than cash) cheques are your best option. Cheques can be handed to the recipient or mailed with little to no cost to either party.
Sending a cheque internationally or overseas that is not already in the country’s currency will often result in delayed processing so the bank can verify the cheque. The recipient may also have to pay a fee and cover the exchange of funds to their currency.
Bank Draft/Money Order
These are also excellent choices for sending money, especially internationally. Bank drafts can be written in the currency of the location that you are sending the money to. The cost of a bank draft or money order is typically between $3 and $10. Like cheques these forms of payment are safe to mail to your recipient and can be cancelled and returned to you if they are lost or stolen.
There are many different ways to send money both locally and globally, it’s important to know what your options are and what method works best for you and your situation. The cheapest option may not always be the best option.