Methods of money transfer
In the present day of technological innovations, money transfer done with cash, check, bank draft or money order may be looked as old fashion already. These options may seem less prominent when there are quicker online alternatives for sending or receiving cash among accounts, regions and even outside of the UK. If the rate for such service is your essential worry, there are surely cheaper alternatives for transferring funds, and the least expensive option may differ based upon your situation. Let’s have a look at some of them.
1. Your own bank
In the event where you're basically sending funds from one account onto another within the same bank, such transaction should be a free-of-charge service made available to you no matter who you are banking with. Pretty much every bank has an online service platform allowing customers to setup wire transfer for example, so they can send funds to another bank, regardless of its location. If this is what you would like to do, you must require the account number where you'd like to send cash to, and the bank's branch or transit number.
International wire transfers are also doable via your bank, however you will frequently require more details, such as the name and address of the person to whom the account belongs to, the monetary establishment where the funds are being directed to as well as the SWIFT or IBAN of the beneficiary bank. Worldwide wire transfers sent in US dollars will cost you around £35. Money sent in foreign currencies will cost about £25. Rates may change contingent on your bank.
2. E-Transfers
Some banks enable you to send, request and receive money directly from one bank account to another. Many financial institutions have this feature built-in for customers who use online banking. Meet Alex, he wants to help out his cousin Mike who is on the other side of the country. Let’s pretend Alex sends the transfer request thru an App, using his smartphone in this scenario, by indicating the recipient’s email address. Once Mike receive this e-mail confirming such request, he will be invited to choose his bank, get redirected to login as they would normally and at last, answer a security question which Alex had setup initially when making the request. E-transfers are very convenient, secure and discrete for those who are always on the go or for cases where long distance can be an obstacle.
3. PayPal
PayPal can be a cost-effective way for exchanging cash. PayPal enables people to exchange money online from one PayPal account onto the next. There is not fee to send cash through PayPal, however the beneficiary is charged to withdrawal the funds. An interest fee of 2.9% will show up for transfers up to £3,000 in addition to £0,50 per exchange. Charges decline somewhat for bigger transactions. Global exchange fees will in general be about 1% higher, and remember that you'll be charged an exchange rate as well if you’re using foreign currencies.
4. MoneyGram or Western Union
Western Union and MoneyGram give comparable services allowing you to transfer money to a distant town, region or overseas. A flat fee is charged for the transaction which is defined by the rapidity of the transfer, where you are sending the funds to and the amount of cash to be transmitted. For transfers in a foreign country, bear in mind you'll be most likely charged an exchange rate for currency conversion.
To be completely honest, these services don't commonly offer advantageous exchange rates, resulting in surprise charges in the event that you proceed by choosing this option. In any case, one are we can acknowledge as a big plus is that they tend be both profoundly trustworthy and useful.
No matter what method you choose, make sure you pick the one relevant to your situation. Sometime we are in a hurry and tend to make quick decisions and pay useless fees. Hopefully this article provided you with roadmap next time you want to transfer money!
