In this today’s technological era you can send money to Uganda and any part of the world within a couple of minutes. The world now has become a single community linked by telecommunications. We live in a global village and that is a fact. The money we earn now is not confined to the place we live in. Many people live far from their homelands. They have to send money back home. The number of freelancers working with international clients is increasing rapidly as well.
Now there are many ways to send money abroad. Finding out the cheapest and speedy method really depends on the amount you are sending and the place where you are sending it.
Factors to keep in mind while sending money abroad
Which method is most beneficial for money transfer to Uganda or any other country depends on a number of factors. These factors are listed below:
- The amount of money you are sending
- Hidden exchange rate cost
- How quickly you want the recipient to receive it?
- Make sure to get the best rate
- Check out the competition.
- Do thorough research on all the money transfer modes out there.
- Don’t opt for the first option you see.
Banks may offer good service with your monthly transactions but the moment you decide to send money abroad things may get complicated. Banks offer poor exchange rates and they often charge hidden exchange rates.
Some banks offer bank-to-bank transfers and they send money directly to the recipient’s account. But this whole process can take up to 5 days. If someone wants to send money in an emergency situation, then banks are not the right option.
Money orders also known as bank drafts are the best way to send money abroad as they save a lot of money. You draw a bank draft in the recipient’s name and mail or courier it to them. It is a time taking process as the recipient will receive the money after almost 15 days but the process itself is very cheap and affordable.
Email money transfers
Email money transfers are also very affordable. They offer service with a minimal fee. Email money transfer works as electronic checks. The recipient is informed via email that the funds are available but the money is not transferred by mail.
This service works quickly and it is cheap as well. The recipient receives the money in no time and normally receiving funds through emails comes with no fee at all.
Online money transfer modes
There are number of companies operating online and sending money abroad. They are quite reasonable in comparison with the traditional ways of sending money.
PayPal is an online money transfer mode. Sending money via PayPal is very inexpensive. It makes electronic transfers possible from one PayPal account to another. Sending money through PayPal is free of cost although the receiving end will be charged a minimal amount in order to cash the payment. The charged fee also depends largely on the sum of money the person is sending. On large transactions, the fee is moderately less. Online money transfer to Uganda or your home country through PayPal would be the best choice.
Although sending money through cash is not so common these days but it proves to be very pragmatic in some situations. If there is no time limit and you are not sending money in an emergency situation then the cash is the right option for you. Simply withdrawing the cash from your account and depositing it to an account in another bank is absolutely free. The plus point to go for this method is that the deposited money is available to withdraw in no time.
Sending money abroad via check is another atypical method but it is an affordable and secure option. Writing a check and depositing it to another account or handing it to another person is not so tricky thing to do.
But things do get a bit confusing if you write a check in UK pounds and send it to a foreign country. Some banks may not accept check-in foreign currencies. Moreover, the receiver has to pay the fee to cash the check and cover the exchange rates as well.
Western Union is one of the largest transfer services in the world. It is convenient as well. Whenever someone wants to send money abroad, Western Union is probably the first option that comes to his/her mind. Transferring money is affordable but it depends on two main factors:
1- How quickly you want it to reach the recipient?
2- The state, city or country you want to send it to.
MoneyGram works in the same way as the Western Union. MoneyGram offers the largest money transfer service after Western Union. It was found in 1940 and has a total of 380,000 locations. It is one of the few companies that offer in-person cash collection of the transfers. It is easy and convenient. It offers service 24/7.
It is a cheap way to send money to Uganda online compare to the traditional methods of sending money. The fee charged depends on the speed and destination.
The bottom line
As they say, you have to make your own mistakes to learn your lessons. Do your research and read about every financial institution that offers money transfer services. Keep yourself updated about the latest exchange rates. Different services charge different fees depending on your location and many other factors. The service suitable for your friend might not be the right option for you. Look into each and every minute detail to make sure that you are not giving away your hard-earned money to giant financial institutions or money transfer organizations.