It is very common for individuals who have family that lives overseas to send money home to family. This is especially true for those that have family living in poor countries, as even small amounts of money can go a long way in a third-world country. If you have loved ones that live in a different country, there are a few different ways that you can send money back home.
However, each of these options has its own unique pros and cons, and what may be ideal for one person’s situation may not be the best for another person’s situation. As such, you need to learn these pros and cons to determine which option may be best. Here are some of the pros and cons associated with international transfer options.
Transferring Via a Bank Account
One of the ways that you may be able to send money to your loved ones in another country is by transferring money from your bank account to their bank account. One of the biggest benefits to this is that the transfer can be completed in a matter of minutes, and both you and your loved one never need to leave your home.
However, one of the most significant downsides associated with this method is that not every US bank allows you to transfer money to every foreign bank.
As such, you may find that you simply are unable to transfer money from your bank account to your loved one’s bank account. It is also important to note that banks typically have low transfer limits.
If you need to send large amounts of money, you may have to make multiple transfers over multiple days. If you can transfer from your bank account to a family member’s account, this option is fast and easy.
Utilizing an Exchange App
Over $500 billion dollars are transferred internationally between family members. Due to this high volume, there are many apps that cater to allowing you to transfer money worldwide. This includes large companies such as PayPal and Wise. The upside to these apps is that they allow you to quickly and easily send money internationally.
Once the money is sent, your loved one may have a debit card they can use to take money out of their account, or they may be able to send it to a bank account.
Exchange apps allow you to send both small and large amounts of money quickly and inexpensively. However, the exchange rate for these types of platforms is often lower compared to banks or wire companies. As such, you should always check the exchange rate.
Wiring the Money to a Loved One
The final common way to send money internationally to one’s family is to wire the money from your country to their country. Wiring money has been used for decades to get money from one country to another.
This method is a secure way to send money. However, one of the downsides to wiring money is that it can take time. Wire transfers usually take days. And once the money arrives in the country, your family member may have to actually travel to a physical location to pick up the wire transfer. This process can be slow and time-consuming.
However, the exchange rate is typically fair with wiring companies and the fees are affordable. If you are looking to wire money to a loved one in another country, always ensure there is a physical location close to their home to ensure they can access the money fairly easily.
If you are looking to send money home to family living in a different country, you have to decide how to transfer the money from your location to their location. Typically, you can do this via a bank account, via an exchange app or website, or by wiring money to your loved one.
Learning the advantages and disadvantages associated with each transferring option helps you to make the best choice for you and your family when it comes to determining how to send the money to your family.