If you want to send money to a recipient immediately from your bank account, a wire money transfer is typically thought to be the best option. This money transfer method offers convenience, speed, and ease; allowing you to transact from any part of the world.
But are wire transfers free? Unfortunately, no. Wire transfers carry a transaction fee, and the fee amount will vary depending on the type of transfer. Continue reading to learn what impacts wire transfer fees and how you can reduce the cost.
How Much Does A Wire Transfer Cost?
While it is a convenient and fast way to send money, a wire transfer carries a fee. The amount of money charged depends on the method of wire transfer you choose and where you are sending the money. For instance, if you are sending money overseas, the amount charged will be higher than that of a domestic transfer. Local wire transfers are cheaper because they can be processed within a single system.
International wire transfers, on the other hand, involve several parties, including your local bank, the recipient’s bank, and the processing system in both countries. This makes the transfer process more expensive and slower than a domestic transfer. Each bank will charge a small fee for its services, making the transaction more expensive.
Additional Costs For Wire Transfers
Additional costs for wire transfers can include fees that come when exchanging currency. While you may not see it directly, it’s likely that the exchange rate you’re getting is not the best one available, and that the bank may be taking a small percentage off this rate as a service fee. On top of that, if you need an expedited transfer, you’re likely to incur additional fees.
How To Reduce The Cost Of Wire Transfers
There are several ways to reduce the cost of your wire transfers. For instance, you can set up the transfer yourself without requesting the bank to do it for you. Some banks add a small fee to the total amount charged for any domestic or international wire transfer if they set it up for you, which would usually be done if you visit a physical branch or call to set up the transfer by phone. So, you can avoid this additional fee by doing it yourself, which can be done through your provider’s website or mobile application.
You can also save money by looking for specialized transfer services that often offer much lower fees, along with better exchange rates if you’re changing currencies.
With Cashero you can move money instantly between users in over 160 countries while getting a competitive exchange rate. See what life can be like when your money is working for you.
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