It’s easy to send money overseas from your bank account, but make sure you shop around to find the most affordable deal.
There are many different ways you can go about transferring money overseas from your bank account. From online transfers to wire transfers to opting to send money with a cash transfer or peer-to-peer service like PayPal, you’re spoiled for choice when it comes to funding your international transfer. Check out our handy guide to compare services and find the most affordable option to send money overseas.
International Money Transfer Offer
XE specializes in a wide range of foreign currency solutions and offers an affordable option when you need to send money overseas.
It’s usually cheaper to fund an overseas transfer using your bank account rather than a credit or debit card. There are several ways you can use your bank account to fund an overseas money transfer, including:
- Bank transfers. Send a transfer overseas from your Canadian bank account using a wire transfer or online banking. Keep in mind that this is typically the most expensive service (fees range from $20 – $100 per transaction) and can take up to five business days to process.
- Online money transfer companies. Send money overseas by transferring funds from your bank account to an online money transfer company such as World First or OFX. These providers typically offer lower fees and more competitive exchange rates than the bank (even though the transaction is still funded from your bank account).
- Cash transfer companies. Western Union and MoneyGram will typically allow you to fund a cash transfer using your bank account. Your recipient can then pick up cash at one of hundreds of thousands of agent locations around the world within minutes of your transfer processing. While these services are the fastest way to send money overseas, they are often more expensive than bank-to-bank transfers.
- PayPal. PayPal offers international money transfers from Canada to more than 100 destinations around the world. If your PayPal account is linked to your bank account, you can use your bank account to fund the transfer. It’s better to send small amounts with this provider since your currency conversion fee and transaction fee are calculated as a percentage of your transfer amount.
If you want to send money straight from your bank account to an overseas bank account, it’s easy to do so through online banking or by visiting your bank in-person to send a wire transfer. In order to send money abroad, you will typically need to have your recipient’s detailed personal information, including their bank account number and IBAN (International Bank Account Number) or SWIFT/BIC number. These numbers are used to identify your recipient’s branch and bank account overseas.
What is the cheapest way to send money overseas from my bank account?If you’re looking for relatively fast and affordable transactions, you’re best bet is likely to transfer money with a dedicated money transfer company. Cash transfer companies are more expensive, but offer an almost instantaneous service. Transfers through your bank will typically cost the most in comparison to other services. Our best advice: make sure to take the time to compare 3 – 4 services to ensure that you find the best possible deal when you fund international money transfers using your bank account.
There are several factors you should consider when choosing a company to process your transaction:
- Competitive exchange rates. Exchange rates are often the biggest factor to signal how much money you can save by using a money transfer service over the bank. It’s best to try to find a rate that is as close to the mid-market rate as possible (which is the rate you can find by typing in “CAD to USD exchange rates” or some other currency variation on Google).
- Little to no transaction fees. Transaction fees for international money transfers typically range from $0 – $20, so it pays to look for a company that offers low-to-no fees in combination with competitive exchange rates. Some online transfer companies will also waive their fees when you send large amounts (usually around $10,000 or more).
- Various transfer methods. Banks typically offer only bank-to-bank wire services while money transfer services are more diverse, allowing you to package money onto phone wallets and pick up cash from service locations.
- Short processing times. Find out how long it will take for your funds to arrive at their destination. If you need your transaction to process in minutes, it probably makes the most sense to book a cash transfer. If you’re willing to wait a few days, then you can typically save money by settling on a bank-to-bank transfer service.
- Reliable customer service. Make sure the provider that you choose has a Canada-based customer service team or a 24/7 help desk to help you with bumps along the way.
You can fund wire transfers, bank-to-bank money transfers and cash transfers using your bank account. It’s typically cheaper to fund an overseas transfer using your bank account rather than a credit or debit card (which usually come with additional fees). You can save money on international transfers by comparing your options to find a top-notch deal that suits your timeline.
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