A bank account is a unique entity that you get from a bank so that you can deposit money for your use. There are various types of bank accounts that you can have as we speak. We have savings accounts, checking accounts, CDs, brokerage accounts, and retirement accounts. Every account has its uses. For example, a checking account allows you to keep the money for your everyday uses. You will learn how to transfer money to international bank account later.
Since time immemorial, international transfers have been significant and more so when it comes to international trade. People can send money to people in other countries to pay for a particular good and then receive it at their address. You, therefore, do not have to waste money traveling to a far country to fetch a commodity. With the proper logistics, then everything goes well. You then receive the item in your location as per your address.
International money transfers have become easier due to mobile wallets such as PayPal, Payoneer, Skrill, Western Union, etc. The platforms usually allow you to transfer money instantly to others, irrespective of where they are. PayPal is the most popular money transfer company globally, operating in more than 200 countries. Interestingly, PayPal allows you to transfer money to your bank account when needed.
Meaning Of International Money Transfer
International money transfer refers to sending money from one country to the other. It can happen in various ways, including in banks, mobile money wallets, and checks. Mobile wallets are becoming the most preferred way to send money internationally. As mentioned above, PayPal is among the most popular money transfer platforms globally. In terms of speed, it is among the best way to transfer money internationally.
You can change the current currency to the recipient’s local currency when sending money internationally, although it attracts some fees. The most exciting thing is that you can transfer money online without the need to walk to your bank and waste time as you line up for service.
Transfer Money To International Bank Accounts – The Method
Suppose you have been wondering how to transfer money internationally. In that case, you are in the right place where you will learn the basics of money transfer to international recipients. There are various means you can use for your transfer. They include the following:
1) Make a wire transfer online
Online wire transfer is easy as you need to log into your account online. That is possible if your bank supports online transaction activities. When you log into your online account, navigate the wire transfer section. If you have trouble finding the wire transfer tab, you can google wire transfer with your bank’s name, and you will get a link to the service. Another alternative is to call your bank to ask them about the issue.
Once you get the link to transfer money using a wire, you can check the transfer limits and fees. Usually, transfer limits for online wires are $5000. If the amount you want to send is beyond the limit, you must contact customer care for directives.
After deciding on the right amount to send, you enter the recipient’s bank details. These include the following:
- The name plus the address of your recipient’s bank.
- Your recipient’s official name, address, and the type of account they have with their financial institution. The account types could be checking, savings, current, money market, etc.
- The recipient’s account number or IBAN
- Your recipient’s bank’s BIC/SWIFT code
Domestic transactions require you to transfer money using the routing number and account number. The BIC/SWIFT represents the receiving bank’s routing number for international transfers, while the IBAN is like the recipient’s account number. You should ask the recipient to provide you with the above details and ensure they are as precise as possible.
The transfer fees usually range from $40 to $50. The receiving bank may likely charge some fees, and you should add them on top if you want your recipient to get the exact amount of money you send them.
2) Transfer in person at your bank
Not everybody enjoys money transfers online. Some people feel comfortable when transferring in person at a bank. You only need to prepare the following information if you are among them before transferring.
- Your name and the US bank you want to transfer money from. Suppose you do not have a bank account. In that case, you can choose a free online checking account with no opening deposit and no credit check from any institution.
- The name plus the address of your recipient’s bank.
- Your recipient’s name, the account type (checking, savings, current, money market, etc.), and address.
- Your recipient’s IBAN (International Bank Account Number).
- The recipient BIC/SWIFT code. The code helps your bank identify the exact bank to receive the funds.
After that, decide the amount you want to transfer and which currency. You may use the US dollars if the receiving bank accepts them. You can then pay the necessary fees to enable the transfer. The receiving bank can also charge a transfer fee ranging from $10 to $20 (€9 to €18). You can check online to see any updates on the fees.
After paying the fees, the bank will do the rest. You will get the details about when the funds should reach the recipient. The duration of transfer ranges from 1 to 5 working days. Wire transfers allow you to send large amounts of money internationally.
3) Use third-party services
There are various third-party services that you can use for your transfers. Third-party services usually offer the cheapest way to send money internationally. They include the following:
PayPal is one of the best money transfer services that allow you to send money internationally. As I mentioned earlier, PayPal services cover more than 200 countries. You should start by opening your account with the platform, then add a bank account you want to send money from. Next, you need the PayPal ID of the recipient to whom you will send money.
The bank account you add to your PayPal account will act as the source of money to fund your transfer. When the PayPal recipient gets the funds, they can withdraw them to their bank accounts. You will have transferred money from your bank account to another international bank account.
Wise is a money transfer company that allows you to transfer money online. The transfer costs are almost eight times cheaper compared to banks. However, you should use a bank account or debit card to fund your transfer. You only need to create a multi-currency account and store your money in dozens of currencies. You can then use the service to pay or get paid with local bank details in the UK, US, the EU, and Australia.
Wise has no hidden charges and no surprises, unlike some banks that usually bring about fees you had not expected in the first place. Wise allows you to transfer money to someone else’s bank account using the live currency exchange rates.
iii) Western Union
Western Union almost operates like Wise, although charges and transfer details may differ slightly. You can transfer money at a Western Union branch or create an account online. It is possible to transfer money to someone else’s bank account or mobile wallet or pick it up at a location abroad.
When transferring at a branch, you can carry cash or use your bank account credit or debit card to fund your transfer. If you use a credit or even a debit card to add money to a Western Union wallet or location, you pay a fee of $5. The fee doubles to $10 when you use a debit or credit card to send money to the recipient’s bank account.
International money transfer refers to moving money from one country to the other. You may need to convert money from one currency to another depending on where you send money. It is important to note that international transfers can happen online and at physical branches. You need the recipient’s bank details to send money to their bank. There are fees involved in the transfers, and thus you should check the cost-effective method to use.