8 Low-Cost Ways to Transfer Money

In the technology-driven world we live in nowadays, transferring money by cash, determine, bank draft, or money order may seem like it ‘s going the manner of the dinosaur. While these traditional methods may appear less popular when there are faster electronic methods for transferring money between accounts, states, and even countries, that does n’t mean the old ways are not inactive feasible options. In accession, if cost is your basal concern, there are cheap ways of transferring money, and the cheapest method may vary depending upon your circumstances .

A depository financial institution teller can help you set up many other transfer services, including telegram transfers to another bank, state, or state. If you ‘re looking to transfer funds to an account at a different fiscal initiation, you ‘ll need the account number you ‘d like to send money to and the bank ‘s route act. There are frequently fees associated with transferring money to a unlike fiscal institution .

Key Takeaways

  • Traditional methods of sending money—such as through your bank—are still applicable today.
  • Overseas transfers through your bank are possible, but there are additional fees charged for sending the money.
  • New apps like Paypal and Zelle make it easy to send money to friends and family in a matter of minutes, with no fees.
  • Western Union and MoneyGram can be used to send money to a different city, state, or country for a fee.
  • Cash is another option for transferring money, as it is free to withdraw money from one bank and make a deposit at the bank where the recipient has a checking account.

Your Bank

A savings bank can assist with many types of transfers. If you ‘re just transferring money from one report to another within the like fiscal institution, this is something you can easily do at your bank for unblock. It can be done in person at a branch by withdrawing money from one score and making the down payment in another or by initiating the transfer on-line .

Overseas money transfers are possible through your bank as well, though you will much require a lot more information, including the list and address of the account holder, information about the fiscal institution the money is being sent to, and the Society for Worldwide Interbank Financial Telecommunications ( SWIFT ) or International Bank Account Number ( IBAN ) of the recipient bank. International wire transfers sent in american dollars will cost you round $ 45. Funds sent in extraneous currencies will cost about $ 35. Rates change and may vary depending upon your bank .

Zelle

One of the newest players on the requital scene is Zelle, founded in 2017. The company is a United States-based digital payments network owned by the private fiscal services firm early Warning Services. To access the servicing, users ( with funds in a U.S. bank report ) enroll their e-mail and a U.S. fluid call count with the Zelle app or through their trust ‘s Zelle electronic portal vein .

next, the person sending the money enters the favored chain mail address and U.S. mobile act of the recipient, who must besides have a trust report in the United States. After payment is sent, the recipient receives a telling with instructions for completing the payment. Zelle does not charge fees to send or receive money, but sometimes the bank or early fiscal mental hospital charges customers for providing access to the avail .

PayPal

PayPal can be an economic method acting for transferring money. It allows individuals and businesses to transfer funds electronically from one PayPal report to another. It ‘s free to send money through PayPal, though the recipient role is charged a fee to cash the payment. For transfers up to $ 3,000, the charge is 2.9 %, plus $ 0.30 per transaction .

Fees decrease slightly for larger transactions, and there are no fees for sending to friends or family members, provided that money is coming from a bank account. International transaction fees tend to be about 1 % higher and keep in mind that you ‘ll be charged an exchange rate on transfers made in international funds .

Western Union or MoneyGram

Western Union and MoneyGram provide similar services that allow you to transfer money to a different city, state, or area. They charge a flat rate for the transfer that is based on the travel rapidly of the transfer, the placement you ‘re sending money to, and the measure of money being sent. If you ‘re doing an oversea or external transmit, you ‘ll besides be charged an exchange rate. These money transmit services do n’t broadly offer a very competitive exchange rate, which results in a hide blame if you transfer money internationally. however, one of the major benefits of these services is that they tend to be both highly dependable and commodious .

As an example of fees, a $ 200 transfer through Western Union to a placement within the United States or Canada will cost you around $ 12 for a rapid transfer and $ 8 for a next-day transfer. A transfer to the United Kingdom will cost around $ 22 if done through an agent of Western Union and $ 15 if done on-line. Fees can change at any time .

New fintech startups that provide international money transfers are Transferwise ( recently changed its name to Wise ) and Payoneer—which serves over 150 countries.

cash

Though this may be considered the “ antique way ” when it comes to transferring money, using cash can be extremely practical in some circumstances. For occasions where clock is not the most important circumstance, simply withdrawing cash and physically bringing it to another depository financial institution to deposit into an history is wholly complimentary ! In most cases, the situate money is available for withdrawal immediately. Keep in mind that sending cash through the mail is discouraged. If the mail gets lost, there is no way to retrieve the money .

personal Checks

Writing a check and depositing it into another account, handing it to another individual, or sending it by mail to a recipient in a different city or state is another low-cost choice—especially if your bank offers loose crack .

Things get a bit crafty when sending checks internationally. Sending a check overseas that ‘s written in american dollars will often result in delays in cashing the check so that the bank can verify the deposit, and some banks may not even accept foreign checks. The recipient of the check may besides have to pay a tip for cashing it and cover the exchange rate to have the funds exchanged into the local anesthetic currency. This method acting is safer than cash for sending by mail because you can cancel a check if it does n’t arrive at its destination .

Bank Drafts, Money Orders, and Cashier ‘s Checks

When it comes to physical transfers that are being sent in foreign currencies, you can purchase bank drafts and money orders in the currency of the localization you ‘re sending money to. cheap money orders can be purchased through many post position branches. These money orders will frequently be less expensive than those purchased through a fiscal mental hospital, running anywhere between $ 3 and $ 9. money orders purchased through a bank often cost about $ 10 .

money orders are typically used for smaller amounts than savings bank drafts. Because of this, the cost of purchasing a depository financial institution draft is much higher than for purchasing a money order. Though these forms of money transfer may take more time, they tend to be a more economical choice than services like cable transfers —and they are traceable in case they do n’t arrive at their destination .

Email Money Transfers

Some fiscal institutions, specially some of the larger canadian banks, offer an electronic mail money transfer overhaul. This form of money transfer functions like an electronic check. The funds are not physically transferred by e-mail, though the transaction is initiated by e-mail, and the recipient is notified by e-mail that the funds are available. You do n’t need the recipient ‘s bank report number, though a security motion is broadly required to identify the recipient role before they can retrieve the funds .

Transferring funds through e-mail money transfer generally comes with a nominal cost of a pair of dollars, which makes it a brassy choice if it ‘s available to you. Receiving funds by this method acting is typically exempt. This service is besides quite authentic and fast, broadly only taking a few days to arrive in the recipient role ‘s report .

Be timid that you only accept e-mail transfers from people you know so you ‘re not falling victim to a phishing victimize.

The Bottom Line

Shopping about and investigating your options will help you find the best softwood for money transfers. Take your time and count for the latest fee information on-line. The cheapest method acting for transferring money in one circumstance might not be the same in another. Do your homework to make certain you ‘re not giving away your hard-earned money to big fiscal institutions or money transplant organizations .

Related Posts