How to wire money in five fast and quick steps?
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Key Takeaways: This article discusses the five steps to wire money overseas and the precautions that one needs to keep in mind during the process.
Wiring money is one of the fastest ways to transfer money both domestically and globally. It may take anywhere between 24 - 48 hours.
What is a wire transfer?
Any electronically conducted transfer of money can be called a wire transfer. Traditionally, it refers to bank-to-bank transfers using any network such as SWIFT or Fedwire. However, it can include other types of transfers as well.
A wire transfer is useful to send and receive money anywhere in the world. It is safer and faster than traditional options. Most banks have the facility to transfer money online.
How to wire money?
Here are five steps that will help you with wiring money.
- Choose an institution - First and foremost, you need to decide the financial institution you will use to wire money. Factors that you may have to consider while making your choice will include ease of process, cost and speed.
- Know the fees - The fees for wire transfers vary from one service provider to another. It is recommended to enquire about it upfront.
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- Gather information - You need certain information to make a wire transfer. Make sure that you have all the necessary information with you to ensure that the transfer is seamless:
- Your bank account number
- The name of the recipient
- The recipient's bank name, address, account number and SWIFT code
- Fill up the form - You can choose either an online or offline medium to fill up the wire transfer form once you have the prerequisite information. An online form is faster and more convenient because you can fill it remotely from the comfort of your home. It is an irreversible process, so be cautious while following the instructions. Upon proceeding to the next step, the system will automatically select the beneficiary’s currency once you enter the recipient's bank details. If not, you may need to do so manually. Please make sure that you enter the account number correctly so that the amount reaches the intended party.
- Follow-up - It is essential to keep your receipts safely to track the money. Wire transfers generally take anywhere between 24-48 hours. The receiving bank usually sends a message to your beneficiary once the amount is credited.
Though it is difficult to estimate the exact cost, these factors will help you in better understanding the costs involved.
- The remitting or intermediary bank may levy a fee on the transaction
- A flat foreign currency conversion charge will be levied.
By keeping these in mind, you can have a rough estimate of the total transfer cost. Another important point to remember is that these costs may get deducted from the final amount credited to the receiver. Many banks follow this, so please check with your bank if they can credit the full amount and bill you separately for the transaction.
How to make your wire transfer cost-effective
Wiring money is a straightforward process. Yet, it may cost you a lot if you don't take these precautions.
- Enter the right information - Your transaction may get blocked if you enter the incorrect recipient bank account number, name and SWIFT code. In these situations, you may have to re-wire the money. You can easily avoid this by re-checking your form before submission.
- Estimate changes in the exchange rate - If you are sending money abroad, be wary of exchange rate fluctuations to ensure that the right amount reaches the recipient. Many banks have online currency converters that are free to use. You can estimate these rates instantly and proceed with your transaction.
- Send a single large payment - If you need to wire money regularly, we recommend you transfer a lump sum amount rather than frequent small amounts. The former saves you time and multiple transaction fees.
One thing that you must keep in mind is that wiring money is impossible to undo. So, be a hundred per cent sure before proceeding.
Final Note: Wire transfer, if done carefully, makes the process of transferring money abroad a breeze. You can now transfer joy to your loved ones with faster remittances.
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