16 Aug 2024
The robust Italian economy, with a nominal GDP of $2.25 trillion and a GDP Per Capita income of $38,373.2, attracts several migrants. Nepalese are no exception. Several Nepalese work and earn a living in Italy. They send money online to Nepal from Italy to offer financial aid.
One of the most common factors all developed countries share is that you essentially have to open a bank account as soon as you arrive. In most developed countries, people use plastic currency, for which a bank account is essential. But banks charge fees – some apparent, others hidden. This blog walks you through bank fees and the strategies to beat them. Additionally, understanding these fees and how to avoid them can save you significant money over time. From maintenance charges to transaction fees, knowing the potential costs can help you make more informed financial decisions and maximize your savings.
Opening an account in a developed country is a necessity. You might think that you do not need one. But what if your employer tells you to open one otherwise, your wages or salary will not be processed. What would you do? Apart from this, opening a bank account accrues many benefits to you. Some of these benefits include:
· Effective management of your finances
· Process salary and wages
· Make necessary payments online like bills, rents, and fees
You can also use your bank accounts to send money across borders, but for this, you will have to consider several factors as you can find better and cheaper alternatives for the same purpose. Regardless of the purpose, you will have to pay different fees once you open a bank account in Italy. This is not only in Italy, but you will have to pay these fees wherever you open a bank account, even if it is in your native country. Remember that these fees are other than the charges you pay a bank for a money transfer from Italy to Nepal. Have a look below.
Every bank charges you a monthly maintenance fee. In the most typical and traditional sense, this fee applies to a checking or current account. It is because a checking account permits more activity than any other account like a savings account or a term deposit.
Given that through a checking account, you carry out several activities like payments of bills, utilities, rents and online shopping, the banks charge a fixed amount as fees. It is to ensure that the account keeps working and stays operational.
You will hardly find a financial institution that does not charge you any fees whatsoever. It is also possible to find a bank in which you can open an account, but this account will not come with typical charges – monthly or otherwise. But this largely depends on the bank you approach and the type of bank account you want to open.
Every bank in Italy has a vast network of ATMs. They operate their own ATM networks, but many offer their ATM-driven financial services through the ATMs of other banks or third parties. The purpose is to have a wider operational presence.
Before proceeding, keep in mind that banks still grapple with several operational challenges and risks. Click HERE to learn everything about the biggest risks and challenges banks face while serving you financially.
However, when you use an ATM of the bank in which you have an account, you typically pay no fee. But when you use the ATM of a third party or another bank, you pay a certain amount as a fee. Although the amount is small, several small payments eventually make it big.
You can avoid these charges by finding a bank that reimburses you the amount that you have paid as fees for using another ATM. You will find several such banks in Italy. But the question is: why choose a bank whose ATM network is limited and has fewer ATMs?
This fee is charged when you initiate or receive a wire transfer. Wire transfers are unlike ACH transfers in which no fee is involved. Since wire transfers are complicated and are international most typically, these incur charges. For example, if you send money to Nepal online from France in a wire transfer, it will incur costs other than the different fees an international money transfer incurs.
It is a little complicated but not impossible. If you search well enough, you will find a handful of banks that do not charge you any fees on your wire transfers. Even if you find one such bank, you will learn that it deals in domestic wire transfers and not international ones. However, a few Italian banks offer you fee-free international wire transfers.
You will find many banks that put a bar on the number of transactions you can carry out every month. This normally happens with savings and money market accounts in Italian banks. Most typically, the maximum number of withdrawals per month ranges between 5 to 10. But it can move upward or downward depending on the banks. If you exceed this transaction limit, you will have to pay charges for this, which will depend on the bank.
You can easily beat these fees if you determine how many withdrawals you will need per month. Negotiate it with your bank and see if you are offered concessions in this regard. If the bank says you will be charged for exceeding the limit, find a bank that does not charge this fee.
Another fee that banks charge you is when the balance you are holding in your account falls short of the minimum requirement. Remember that these requirements depend on different banks and vary greatly.
However, these charges do not apply right away if the balance falls below that limit. The bank waits for some time and then sends you reminders and if still you are unable to maintain the balance requirement, will charge you.
To avoid these charges you simply have to maintain the minimum balance. But one point to remember is to choose a bank that has the lowest balance requirements and the one that does not apply these charges even when there is a bare minimum amount in the account.
Choosing a bank to send money to Nepal from Italy is not a financially intelligent decision. Because banks, apart from charging you the different fees explained above will charge you extra at every step of the transaction.
For example, banks will charge you currency conversion fees, and extra charges for speedy delivery, along with offering you static currency exchange rates that are not cost-effective as they keep in flux in the global market. They also deliver funds in days.
Instead of banks, you must choose an online remittance transfer service provider that not only charges you a low fee but also offers you live and market-competitive currency exchange rates that will financially compensate you for the fees you pay for the transactions. Moreover, your funds will be delivered in less than a few hours, as opposed to the banks, which take days to deliver funds across borders.
Every bank in the world, be it in Italy or elsewhere, charges you different types of fees. These fees include third-party ATM usage fees, minimum balance requirement fees, account maintenance fees, exceeding monthly withdrawal limit fees, typical monthly fees, and wire transfer charges, be they domestic or international.
Even though banks cater to your most typical financial needs and requirements holistically, banks still are not fit for international money transfers more so when you can find several better alternatives that offer you some of the cheapest and most cost-effective international money transfer deals.
Banks still face many challenges in their remittance operations. These challenges typically involve banks charging you a high fee, offering static and fixed currency exchange rates, and commuting hazards that add to the overall charges. Moreover, banks take between 3 to 5 business days to deliver funds and even charge you a currency conversion fee.
Having a bank account offers you several benefits. These benefits include effective management of your money and finances, paying your utility bills, rent, and other payments online, keeping an eye on where your money is going, and saving despite having easy access to your funds at any time, anywhere.
The best alternative to banks for your international money transfers is the online remittance transfer service provider companies. These companies charge you a low fee, deliver funds within minutes and hours, offer you live and market-competitive currency exchange rates that compensate you for the fees you pay, and do not involve commuting hazards.
Resource(s)
· Italian GDP
(GDP (current US$) - Italy | Data (worldbank.org)
· Italian GDP Per Capita
(GDP per capita (current US$) - Italy | Data (worldbank.org)
