How to Save on International Money Transfers: What Banks Don’t Tell You

Normally, I’d question the secret fees that are hidden in my bank’s international money transfer services. While banks sometimes advertise low transfer fees, they usually do not mention the substantial exchange rate margins that quietly siphon money out of your funds. It shouldn’t be expensive to send money overseas.

I’ve discovered seven practical strategies anyone can use to save on international money transfers. Whether you’re sending a hundred dollars to a family member or paying for a service in a foreign country, these tactics will help you hold onto more of your hard-earned cash.

Avoid Using Traditional Banks

Banks may be an easy way to transfer money internationally, but they are also one of the most costly. Why? Since banks often impose hefty transfer fees and use exchange rates with significant markups and high margins, you lose a substantial amount for every dollar you send.

Instead, look into specialized services like Wise. With Wise (formerly TransferWise), your transfers are up to 8 times cheaper than with a bank.

So far, I have saved hundreds of dollars by transferring money with Wise. They have an easy sign-up process and an Affiliate Program at Wise, where you can earn money by sharing their service with others.

Time Your Transfers Wisely

Rates are volatile, and sending money on a whim could cost you more. Instead, track the rates and send your money when the exchange rate works in your favor. Some money transfer platforms will even let you set rate alerts.

Platforms such as Wise or NerdWallet also offer tools for comparing historical rates and making predictions about trends, so you’ll find the best deal. For me, they have been indispensable for transmitting money across borders.

Leverage lower-cost money transfer apps

Apps like Robinhood and Coinbase also provide an alternative for sending money abroad, particularly if you’re transferring small sums or dealing in alternative currencies, such as cryptocurrency.

Robinhood, for instance, does not charge a commission on buying and selling crypto, which can save you a lot of money if your recipient is receptive to this currency.

First, Robinhood’s Affiliate Program offers new users $5 per lead, while using crypto to transfer funds can eliminate traditional fees.

Choose the Right Payment Options

Fun fact: Your method of payment can affect your transfer cost. In addition to convenience, credit cards can charge higher fees and cash advance rates to process international transactions. On the other hand, if you connect your bank account directly to a transfer service, such as Wise or Acorns, the costs are typically lower.

Speaking of Acorns, its platform not only saves on transfers but also rounds up the spare change from transactions and invests that money. And now, there’s a simple way to start saving effortlessly with Acorns’ Referral Program.

Use a Forward Contract to your advantage

Forward contracts can be used for larger or more regular amounts. These services enable you to secure a favorable exchange rate for a future transaction. This can help protect your investments against market volatility.

By providing these specialized services, businesses like Wise Business Accounts can enable businesses to plan and lock in rates, giving you peace of mind with every transaction.

Consolidate Small Transfers

Sending lots of little international payments? You would consolidate them into a single large transfer. This strategy reduces the number of fees you pay, as many transfer services charge a set fee per transaction.

Services like Wise and Coinbase are excellent for pooling small amounts because they’re optimized and inexpensive for processing even tiny amounts through their systems for microtransactions.

Investigate Transfer Options

There is no one-size-fits-all solution for international money transfers. Compare platforms before making your decision based on what works best for your specific needs. Sites like NerdWallet feature side-by-side comparisons of the fees, exchange rates, and transfer timing across multiple services.

With the NerdWallet Affiliate Program, you’ll receive resources to help you determine exactly where your money is going and just how much more you could be saving.

Credit Monitoring

Credit Karma offers a strong, easy-to-use, and free platform for managing your credit profile. If you don’t want or need all the information it presents, the site’s focus on only one part of your financial life could be a welcome alternative to the all-in-one reports found on sites like WalletHub and IdentityForce, among others.

This website provides free access to your credit score and how it compares to others, as well as a full credit report and credit monitoring support. Use it to monitor changes to your credit score.

With credit monitoring, personalized recommendations to help you get on the right track, and more, Credit Karma is here to help keep you on track. Whether you want to secure a loan, apply for a better interest rate, or improve your financial reputation, this can help you achieve all your financial goals. Apply now to Credit Karma to monitor your credit score.

Final Thoughts

Why spend more than necessary when sending money overseas? Turning instead to Wise and similar platforms can enable you to save as much as half and keep more money where it’s meant to be — in the hands of the recipient, that is.

Keep in mind that savings begin with informed choices. Begin with your current approach and see what works for you. Whatever you’re sending money to friends, family members, or business partners for, it never hurts to apply a little thoughtful planning beforehand. Start saving money today by clicking the links below for your cross-border payments. With low fees, fast transactions, credit monitoring, and secure crypto transfers,  hence  a more innovative way to send and receive money globally!