24 Jul 2023
The bilateral relations between Canada and India have been going from strength to strength. The strong Canadian economy has attracted many Indians to come to work in Canada to earn a living and send money to India from Canada to support their families back home.
The trade between the two countries stood at $10.1 billion in 2019 but dropped to $8.7 billion in 2020 due to Covid-19.
Both countries are looking forward to increasing the volume of bilateral trade in the years ahead.
In addition, the World Bank stated that Canada's nominal Gross Domestic Product (GDP) was $1.99 trillion in 2021 and had a GDP per capita income of $51,987.9 in the same year, according to another World Bank report.
According to a report by Statista, slightly over a million Indian migrants (1,021,356 to be exact) resided in Canada in 2020 for different purposes.
These Indian migrants use different methods to send money back home, whose details are provided below.
Let’s begin by answering an important question.
This question is important to answer.
Although banks still command the financial trust of millions of customers worldwide and provide innumerable financial services.
They are no longer deemed suitable for money transfers across borders because of the following few limitations.
And remember that these limitations came to the fore only after the advent of several money transfer companies, including ACE Money Transfer, whose service features revamped the core concept of online money transfers across the world.
Discussing these features is essential, but first, a quick look at the limitations that come with the services of banks.
Some of the following limitations most banks worldwide still find hard to overcome.
Banks have always been charging high fees for their financial services. Whether it is to deposit money, withdraw or move funds from one place to another, the service charges have always remained high and continue to remain up.
This was a big challenge for the Indian migrants and would leave them scratching their heads and confused about how to send money to India, at least until the advent of the alternatives.
The minimum time the banks take to deliver funds from one place to another is between 3 to 5 business days, which is too big nowadays when funds take seconds to transfer.
This time can even increase depending on the volume of funds, destination, time of initiation of a transaction, etc.
The exchange rates the banks offer are static and uncompetitive and substantially slash the amount being transferred against other service providers whose exchange rates are live and competitive.
To approach most of the banks, you will have to commute to them, which incurs costs which vary depending on how far a bank is located from where you live.
As an Indian migrant in Canada or someone aspiring to go there, are you interested in learning about Indian cuisine in Canada?
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Let’s now take a quick look at some of the common bank account types.
The following bank account types are available worldwide, and almost all banks offer them to customers.
Well, the answer to this question is largely shaped by your circumstance and money transfer needs.
While maintaining a bank account is essential for the better management of your funds and finances, it is not necessary that a bank account will equally be beneficial for your online money transfer needs.
But still, a large number of people use banking services, including money transfers that depend on, as stated earlier, their circumstances and needs.
The following will help you arrive at a better conclusion for your online money transfers to India from Canada.
A quick and slight comparison between these service features and those offered by banks will suffice to help you take a sound decision about which method to use for the same purpose.
Your online money transfer to India with ACE Money Transfer from Canada is simple, fast and inexpensive, offering you the most competitive currency exchange rates in exchange for a low fee and much more from just one stop.
FAQs
What factors should I consider when choosing a bank for money transfers to India from Canada?
When selecting the best bank for money transfers to India from Canada, several key factors should be considered. Firstly, look for competitive exchange rates to ensure you get the most value for your money. Secondly, check the fees associated with the transfer, including any hidden charges, to minimise costs. Additionally, consider the transfer speed and reliability of the bank's services to ensure your funds reach the recipient promptly and securely. Lastly, examine the bank's customer support and availability of convenient online or mobile platforms to streamline the transfer process.
Are there any specific banking options or services tailored for sending money to India from Canada?
Yes, some banks offer specialised services for sending money to India from Canada. Look for banks that have dedicated remittance services or partnerships with Indian banks to facilitate seamless transfers. These options might offer benefits like discounted fees or faster processing times for sending money to India. Research banks that have a strong presence in both countries as they are likely to have better infrastructure and expertise in handling international money transfers.
What are the typical fees associated with sending money to India from Canada, and how can I avoid high charges?
The fees for sending money to India from Canada can vary depending on the bank and the transfer method you choose. Banks often charge a combination of flat fees and percentage-based fees on the transfer amount. To avoid high charges, consider using online money transfer services or specialised remittance providers, which might offer lower fees compared to traditional bank transfers. Additionally, some banks may waive fees for certain account types or offer discounted rates for larger transfers, so it's essential to explore all available options.
How important is the exchange rate when transferring money to India, and can I get a better rate than what the bank offers?
The exchange rate is a crucial factor when transferring money to India, as it directly affects the amount your recipient will receive in their Indian account. Banks typically offer exchange rates with a markup to cover their costs and generate profit. To get a better rate, consider using specialised foreign exchange providers or online platforms that offer competitive rates and lower markups. Compare rates from multiple sources before making a decision to ensure you get the best value for your money.
How long does it usually take for the money to reach the recipient's account in India?
The transfer speed can vary depending on the bank you choose and the transfer method used. In general, bank-to-bank transfers may take 2 to 5 business days for the funds to reach the recipient's account in India. However, some specialised remittance services may offer faster options, often within 1 to 2 business days. It's essential to check with the bank or service provider about their specific processing times to set the right expectations for your money transfer.
Resources
(Canada-India Free Trade Agreement Negotiations (international.gc.ca)
(GDP (current US$) - Canada | Data (worldbank.org)
(GDP per capita (current US$) - Canada | Data (worldbank.org)
