14 Dec 2023
A UN migration report stated that the number of total international migrants in 2020 was 281 million, accounting for 3.60% of the total global population. According to calculations, one in every 30 persons is a migrant. These migrants earn a living in a foreign country and send money online to their families for financial support and other purposes that vary from family to family but the core purpose, however, remains financial support.
Of about 281 million migrants, who do you think would not want to save money, particularly when it comes to transferring funds back home?
Well, hardly any.
Saving money as a migrant is something that a majority of the migrants are pretty concerned about, and they keep looking for techniques that could help them save money they earn in a foreign land.
This blog will shed light on how you could save money on your international money transfers.
If you take a look at the global migrants, you will realize that a huge number hail from low- to middle-income countries (LMICs). These countries have struggling economies and, therefore, cannot provide for their people which leads to unemployment resulting in rampant poverty.
People cannot afford a quality education which is considered to be a sure recipe for getting a financially secure future. So much, so that for most people fulfilling the basic needs of life becomes no less than a luxury.
In such a scenario, when these people travel abroad to earn a living, they try to ensure they save every penny because, of course, an increase in your savings as an expatriate means stronger financial support to those financially dependent upon you.
Let’s now see how you can save money on your global money transfer.
Although you can find many ways to save money while transferring funds from across borders, the following few ways are easy to follow, with huge rewards in this regard.
A large number of migrants still transfer funds through banks because they trust the institutions and also because of the respect the global banking sector commands.
But, despite the trust and respect the banking sector commands, it is not a recommended option for a money transfer from abroad if you wish to save money in the process. Banks take days to transfer funds and charge a high fee for the service. Furthermore, a bank’s currency exchange rates are static which compels you to settle down with the deal that is available and offered.
Since bank branches are located in specific locations, if you reside nearby, is a boon, but if it’s not, then you will have to spend money commuting to the said branch.
Currency exchange rates are always tricky and, at the same time, a great way to save money while transferring money.
Remember that these rates keep fluctuating in the international market with each tick of the clock, which divides them into the following two categories.
Several companies, including banks, keep these rates fixed for 24 hours, at least, if not more. Now, if the institutional rates are higher than the international market, you get a better deal, but this hardly happens.
Some of the companies link their rates with the ever-fluctuating international market and offer those to you which are in the market in real-time. This allows you to initiate a transaction at a time when rates are most in your favor.
This is a great way to save money in your global money transfer.
The amount you transfer has a direct and deep bearing on whether you can save money or not. Some of the service providers keep a fixed fee for a certain amount with an upper limit. For example, whether you send $100 or $350, the fee will remain the same unless the amount crosses the upper limit, which varies from company to company. At the same time, others charge fees as a percentage of the amount being transferred. In this, you can get a fluctuating fee structure.
The timing you choose also has a deep impact on the charges you pay for transferring funds. If you wish the money to be delivered quickly, it may cost you more than the normal time the delivery will take. In addition, the method you choose, including cards, banks, companies, etc., will also determine the cost of your transfers.
A few money transfer companies launch different promotional campaigns for their customers. These are time-bound and allow customers to participate in them to meet certain easy conditions. Several rewards and prizes are on offer, including the latest models of phones, cars, bikes, etc. In many cases, these campaigns offer fee-free money transfers that help you save money.
Do you want to learn more about these promotional campaigns?
Click here: Details Of A Promotional Campaign.
At times, certain service providers offer fee-free transfers which are, of course, time-bound. You can wait for these but make sure that you do not delay your routine transfers too much because that will land recipients in financial trouble. This, however, is a rare feature and is unique to only a handful of remittance service providers.
Following these tips will help you save money while transferring funds from abroad.
Regular campaigns offering rewards, prizes, and fee-free money transfers are ACE Money Transfer’s routine. You also get live and competitive currency exchange rates, speed, safety, over 350,000 payout locations in over 100 countries worldwide, and much more from ACE Money Transfer’s one window.
To save money on international transfers, compare exchange rates and fees from different providers, use online money transfer services, and consider peer-to-peer platforms. Additionally, sending larger amounts at once may result in lower fees per unit of currency.
To find competitive exchange rates, use online currency converters and comparison websites. Keep an eye on the mid-market rate, as it reflects the true exchange rate without additional markups. Choose a provider that offers rates close to the mid-market rate.
Yes, online money transfer services often offer lower fees and better exchange rates compared to traditional banks. They specialize in international transfers, resulting in cost savings for customers.
Yes, some providers may have hidden fees, such as receiving bank fees or intermediary bank fees. It's essential to read the fine print and understand the complete cost structure before making a transfer.
To minimize currency conversion costs, consider using multi-currency accounts or services that allow you to hold and transfer money in multiple currencies. This can help you avoid additional conversion fees.