How to Compare Two Common Money Transfer Methods for Bangladesh?

Sending money to Bangladesh through a money transfer company has become a necessity for almost every overseas Bangladeshis living abroad. Many people have their families or loved ones in different countries, and they may have to send money regularly or rarely. 

What are the Basic Ways to Send Money Online?

There are two basic methods of sending money online.

How Banks Send Money? 

Banks are the pioneers of money transfer systems. In the early decades, only banks were used for transferring money from one country to another. If you are transferring money through a bank, then it usually takes about 1-5 business days. The process that you typically have to follow is quite simple:

  • Visit any nearest bank or if the bank is providing online services then open its site.
  • Enter the country (where the money has to be sent) and the amount.
  • Enter the Recipient bank details

That’s it. Your money will be sent. The estimated time at which the receiver may collect the money will be told to you. If a person has to send a large amount of cash, then he/she may have to fulfil some other forms too. The bank may transfer your money after getting some details, and it can also deny it. For Instance, if you want to send money to Bangladesh through a bank, then the per-day limit should be defined. This limit may vary from bank to bank, but the variations will be minor. 

How do Money Transfer Companies work?

Plenty of money transferring companies are working for the betterment of this system. Many efficient companies, such as online money transfers, have made their worth by providing credible services. Now, this mode of online money transfer to Bangladesh or other countries is used a lot more than banks. If we talk about the procedure, then it is almost same as that of a bank. 

  • Enter the country and Amount.
  • Enter the Recipients details. 

Similar to the banks, these companies also have specific money transferring limits. For Instance, If you need online money transfer to Bangladesh, then the per-day sending limit through a payout location is defined. This limit may also vary from company to company and the variations can be major or minor depending upon the country and the rules of any company. 

Which Money Transfer Way IS Better for Bangladesh?

Both of the ways are efficient and useful but which one is better? Although the perimeters of choosing the best way can be different through our perspective, Money transfer to Bangladesh is proved to be more effective than banks. The primary causes behind these are:

Exchange Rates: 

Banks are not specialized in currency exchange due to which they have higher exchange rates, while a money transferring company may give you exchange rates without any extra markups.

Flexibility: 

The money transfer companies dare to mould their policies according to the customer’s need. At the same time, banks stick by their rules strongly, which may cause problems for an individual, who is trying to transfer money overseas. 

What are Three Steps to Cheaper International Transfers?

For an untrained eye, regular international payments can be a nightmare due to the overwhelming costs. The solution to this revolves around classifying different fee, and for that, you must know what type of charges are deducted from your final payments. 

Transfer Fee

It is the standard fee for using any money transfer service. It may be a flat fee or a percentage of the transferred amount, depending upon the provider that you use. It is mostly transparent. For banks, it ranges from 10-15$ per transfer. However, money transfer companies can provide you with much more beneficial rates. 

Solution:

Shop around and take the rates of 4-5 top companies of your state. It will help you in getting the cheapest one. 

Currency Conversion Rates

Almost every state has a different currency and when you send payments from one state to another, the provider is usually responsible for exchanging the currencies too. The markups on rates mean that you will be having a slightly different rate than the actual rate (can be checked on Google, XE or Oanda) It means that the beneficiary gets lesser amount than the actual payment and all that extra fee goes into the pocket of the providers.

If you want to calculate the hidden fee of any provider, just implement a simple formula.

Rates are given by provider-Rate shown at Google= Difference/$

For more understanding, let’s look at an example. If you want to send money to Bangladesh online from the UK, then the current exchange rate should be checked on a priority. If your provider is giving you a good rate, then you can choose that service. It may look like a small amount when you compare different currencies. But if you want to send a considerable amount to Bangladesh, this rate will be multiplied. So a benefit in a few numbers is the right choice.

Solution: 

It’s not possible to have a provider with zero hidden fees. But, if you use comparison tools or live calculators, it can help you in finding a provider with the most low-priced conversion fee. ACE Money Transfers is a cost-worthy service provider, especially known for best rates, helping you in getting maximum returns against your currencies. 

Other Fee

Other than the costs written, several different types of costs may be added too. When you use a credit/debit card to send money online instantly, it attracts a hefty fee and sometimes can also add some taxations. If your bank is not international, then additional charges will be added for linking the international bank with your domestic bank. Similarly, some banks can also cost extra for receiving payments in foreign currency. 

Solution: 

Create an account with an international bank. If not possible, a borderless account is also a good option. Try to use credit cards, debit cards, Giropay (Germany only), Bancontact (Belgium only) and your bank account for swift money transfer to your homeland.