Banking and online remittance service providers are the two most popular options used for transferring funds overseas. Both methods have their respective pros and cons. Hence, it is recommended to consider factors such as fees and time involved in the transfer process, latest exchange rates and reliability before making a choice.
Compared to online remittance service provides, banks generally offer lower exchange rates and charge higher fees for wire transfers. Although you may come across a few banks who may apparently not charge any overseas wire transfer fees, but in reality such banks usually levy hidden costs such as tax and service charges.
In case your bank doesn’t offer online remittance services to send money to India, you may be required to visit their local branch and fill lengthy forms for the purpose. Additionally, you may also have to provide an identity proof.
Usually, banks offer wire transfer services only to existing customers. To be able to use a bank’s wire transfer services; you need to have an existing account with them. Also, bank transfers take more time as compared to online service providers who can execute transfers within hours.
Another important factor that you need to bear in mind is that banks usually transfer to other banks. On the other hand, online service providers are very convenient since they have agents located in various locations in most of the countries.
While bank-to-bank transfers are best suited for transferring larger funds overseas, remittance service providers are an ideal choice for smaller amounts. Though some banks may provide special remittance offers for smaller remittance transactions without any transfer fees, their exchange rates may not be up to your expectations.
Irrespective of which method you choose, it is always advisable to first compare factors like transfer fees, foreign exchange rates UK and time required for the transfer.