Unlike the old days, making an international fund transfer is straightforward. You can now transfer money abroad for your loved ones from the comfort of your home, thanks to the internet and technological advances. All you need is a smartphone with a sufficient balance in your bank account to send money abroad.
If you are sending money abroad for the first time, you will need to be mindful of certain factors, such as money transfer service provider, transfer fees, transfer limit, foreign exchange rates, etc. Knowing the said factors allows you to make an informed decision.
Here are the common mistakes you should avoid while making an international fund transfer:
- Missing to cheack the beneficiary details
It is worth noting that one mistake, even if it is a petty one, can delay the processing time. Also, you will go through a time-consuming process to get your money back from overseas bank.
So, before you transfer money abroad, make sure to cross-check the following details:
The recipient’s full name and home address
The recipient's bank account number
The recipient’s bank’s SWIFT Code
- Not comparing service providers
Keep in mind that not all money transfer service providers offer the same rates and other fees. Before sending your money abroad, it is imperative to compare different service providers, their rates, etc. A golden piece of advice would be to choose a service provider that offers the best foreign exchange rates and transfer fees in the market. Also, make sure that the service provider is reputed and reliable. They should be able to offer a quick and inexpensive to transfer money abroad.
- Ignoring the purpose of remittance
If you are sending money abroad for the first time, it is crucial to check the remittance purposes allowed by the Reserve Bank of India. It is worth pointing out that every country has a set of remittance rules that you will have to follow. You can send money abroad for education, immigration, employment, visa, medical emergency, family maintenance, arranging travels and tours, opening a business abroad etc.
- Overlooking the transfer limit
There is a transfer limit set by every bank. So, before making an international fund transfer, you will need to check how much you can send abroad. If you wish to secure lower transfer fees, it is advisable not to go above the limit. However, if you go over the limit set by your service provider, you will have to incur higher transfer fees.
- Expedition the processing time
Generally, an international fund transfer takes about 2 to 4 working days to reach the recipient. You can choose to expedite the process, but doing that is not advisable at all. Unless you have to meet an urgent requirement, it is better to send the money within the usual duration. But, if you want the money to reach the recipient sooner, you will have to incur higher charges.
- Ignoring the transfer norms
Whether you are sending money abroad online or through a financial institution, each money transfer provider has certain norms that you will need to carefully read to avoid mistakes. Your transfer norms may include transfer limit, processing time, etc. So, make sure to carefully read the rules and regulations of your service provider before making an international money transfer. It enables you to know how much you can send in one time, the total number of transactions allowed in a year, and whether the payout will be made in cash or cheque.
- Ignoring the foreign exchange rate fluctuations
Another mistake you can make while sending money abroad is ignoring the foreign exchange rate fluctuations. As you will need to transfer funds in the recipient’s local currency, you will have to incur foreign exchange rates, which are subject to fluctuations due to market conditions. Therefore, it is imperative to keep an eye on the exchange rates until you find one that best suits your needs. This way, you can save significantly while making an international fund transfer.