Wondering how to send money to Tanzania from the U.S.? Here’s the information you need.
From bank transfers and online transactions to options that allow recipients to collect your funds within minutes, sending an international money transfer to Tanzania is easy. However, do your research and shop around for the best available deal.
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Neema Bilal arrived in America as a student. She did not return to Tanzania at the end of her education because she got a job in the U.S. that permitted her to continue living here. However, her parents still live in Tanzania. While her father makes enough money to sustain their livelihood, Neema wants to contribute so they can lead a more comfortable life. She figures she can afford to send around $1,000 every two months.
First, she checks if she can use her bank for the transfer. Since it does not deal in exotic currencies, she cannot. She then turns online to compare money transfer companies, and this is what she finds.
|Money transfer service 1||Money transfer service 2|
|Exchange rate||$1 = $1,493.45 TZS||$1 = $1,500.50742 TZS|
|Amount received for $1,000||$1,493,450 TZS||$1,479,515 TZS|
|Transfer time||1 day||1 day|
|Transfer options||Bank account||Bank account, cash pickup|
|Difference of||$13,935 TZS|
While the second service provider offers a better exchange rate when compared to the first, it also charges a fee. As a result, Neema uses the first service provider, through which her parents stand to receive more money. Since she wishes to transfer the money directly into her father’s bank account, the first service provider not offering cash pickup as an option is not a concern.
How do I compare transfer companies when sending money to Tanzania?
Comparing banks and money transfer companies is not difficult, provided you know what to look out for.
- Fees and exchange rates. Some service providers may offer no-fee services, but they can offset the cost by offering unfavorable exchange rates. Similarly, paying exorbitant fees to get a seemingly great rate does not make sense. An easy way to pick the better deal is to compare the money the recipient stands to receive.
- Ways to send money. Banks that offer fund transfer services to Tanzania can let you go through the process online, over the phone or in person. Sending money in person is also an option if you choose a suitable money transfer company. There are numerous money transfer companies that operate in the online world. Some of these let you send money over the phone as well.
- Ways to receive money. If you have the recipient’s bank account details, you can transfer funds directly into a Tanzanian account. Collecting transferred funds from a cash pickup location is also an option.
- Transfer options. Can you lock in an ideal exchange rate now and transfer the money later, known as a forward contract? Does the institution offer limit orders, which allows you to take advantage of changing market conditions by executing the money transfer when a certain exchange rate is met? Can you schedule recurring payments?
- Using the same bank. You can benefit by using a bank for the transfer, provided both you and the recipient have accounts with the same institution. Benefits can come in the form of a quicker turnaround time and reduced fees.
- Minimum limits. Some service providers have minimum transfer amounts in place, which can be $500 or even $1,000.
- Customer service. You never know when you may need to contact a company representative. You should ideally be able to do so over the phone, via chat and via email.
Options for sending money to Tanzania from the U.S.
- Banks. There are banks in the U.S. that let you send money to Tanzanian bank accounts, which you can do in person, online or over the phone. You can also think about mailing a bank-issued check, draft or money order.
- Non-banks. Money transfer companies such as Western Union and MoneyGram let you transfer funds to Tanzanian bank accounts. You can also use their services to send money to cash pickup locations in Tanzania. Using PayPal is also an option, as long as you and the recipient have accounts with this service provider. You can open a new PayPal account for free, in little time.
Tips for picking up cash in Tanzania
It is recommended to exercise a high degree of caution when in Tanzania. Instances of bag snatching from moving vehicles are common. As a result, when you’re driving make sure you keep your vehicle’s doors locked and windows closed. Exercise vigilance in isolated areas and refrain from traveling to such areas alone or after dark.
Remain vigilant when using public transportation, as well as when at tourist destinations and bus stations. Stick to using registered taxis. Don’t accept food or drink from strangers as it may be spiked.
What are the steps to send money to Tanzania?
The steps involved in sending money to Tanzania from the U.S depend on the method you choose.
- Transfer to bank account. If you’re sending money through your bank, you’ll have to provide the recipient’s name, account number, bank’s name and the bank’s routing number. If you’re using another bank or a money transfer company, you’ll have to provide details of your bank account, debit card or credit card as well. You should get a reference number once you initiate the transfer. You can use it to track the progress of the transfer at any time.
- Cash pickup. You’ll have to provide the recipient’s name and a desired cash pickup location along with details of your bank account, debit card or credit card. You get a reference number, which the recipient will needs in order to collect the transferred money.