International Money Transfers Explained #AD
Thanks to the wonders of the world wide web, it’s easier than ever to send money to somebody on the other side of the world. But if you’re new to sending an international money transfer, then you might need a few pointers to make sure your transactions run smoothly, particularly if you’re sending large amounts.
Why might you need to make an international money transfer?
There are all kinds of reasons why you might need to make an international money transfer. It could be that you need to send money to support family overseas, or you could be sending money to a loved one as a gift. HSBC carried out a survey to learn about International Money Transfer Stories of a cross-section of people, and the main reasons for sending money overseas were as follows:
- Gifts for family members
- Financially supporting family
- Own use for travelling purposes
- To put into savings
- Paying utility bills
- Purchasing investments
You can see the breakdown of this survey in the infographic from HSBC here:
Is there a limit to how much money you can send abroad?
If you’re a UK resident, then there aren’t currently any legal limits as to how much money you can send abroad via international money transfers. However, each bank or financial institution will have its own limits, so it’s a good idea to double-check this if you’re planning to send a large amount of money overseas in one transaction. It’s also worth noting that both the UK government and HMRC keep a close eye on international transactions to ensure that everything is being done legally and is being declared properly. Make sure that you can provide evidence of the source of your funds as well as evidence of the reasons why you’re sending money abroad.
How to choose an international money service
Whenever you’re moving your money, it’s important to check that you do your research. Different providers offer different services, so here are a few things to check before making that international money transfer:
- FCA protection – The Financial Conduct Authority (FCA) is the regulator for almost 60,000 financial institutions in the UK. Choosing a regulated provider means that you are more likely to get your money back if there are any complications whilst sending money abroad.
- Exchange rates – The exchange rate at the time you transfer money can make a huge difference on the amount received at the other end. It’s always a good idea to track the exchange rates for a little while before sending money, so that you can be sure that you’re getting the most for your money. Keep an eye on a few providers to see how they stack up to make sure you’re getting a good deal.
- Fees – Every international money transfer provider will charge a fee for their service, and these can vary dramatically from one provider to another. Make sure you read all of the small print to see what fees you will be charged and when so that you don’t get hit by any nasty surprises.
Sending money abroad is something that’s become part of everyday life for many people, but it’s always worth double checking that you are getting the best deal you can by running through these few checks every time you send money overseas.
*This is a collaborative post.
