Money transfer service facilitates transferring money from one person to another or from one business to another worldwide. With the growing economy, people are settling down abroad. Even the number of international companies is also growing now.
Large global companies also got local workers; hence money transfer services or remittances have become an essential part.
The sender of this remittance can mainly be from abroad, sending money back to the country. Hence the recipient can be the local one.
Now you may want to know what a spread is.
About Spread
So, the spread is the difference between the actual mid-market rate and the rate that one would get for his/her transaction. For example, if someone wants to send $5000 from Canada to Australia through ATM. The bank will charge you a certain amount of fees. Moreover, as the person uses a foreign card, the ATM will also deduct specific costs.
Hence, the money is getting deducted, yet the person is not getting the correct exchange rate. Well, this is the spread that happened.
If one wants to keep trying to transfer money through ATM, the bank will hold a certain amount of spread for themselves. If the person moves the money through ATM, the bank will charge a certain amount repeatedly.
The result can be insanely expensive than expected as well as time-consuming.
Contribution of Remittance
Remittances also contribute a significant portion to the economy of developing countries. For underdeveloped countries with low income, remittance portrays as a significant source of income for the native population.
For example, Mexicans sent more than $24 billion of money from abroad to back home. This amount is more than the income this country brings about by selling oil.
How to do Remittance?
Well, some people trust ATMs for this service, and that is not the way. Everyone should try a money remittance service to transfer money back to their home. Keep in mind that whatever service people are using, one can not transfer money for free. It takes a certain amount of transfer fees to complete the transaction.
Sending money to India from a foreign land may seem overwhelming; the money transfer process abroad is complicated and requires time and effort.
With the advent of newer and faster global money transfer technologies, the options available in the market have multiplied significantly.
Choosing the best option that suits your purpose is crucial for a successful transfer.
Let’s look at the best ways to send money to India
1. Bank Account Transfer
Automated Clearing House (ACH Transfer) is a network that moves money between banks and financial institutions without using paper checks, wire transfers, credit card networks, or cash. After verifying the bank account, cash in small denominations can be sent regularly.
This is favorable for sending money to India periodically and in small amounts. The bank charges are minimal and require one-time paperwork.
2. Online Money Transfers
Many consider online money transfers the easiest way to send money to India. There is no paperwork or additional responsibilities involved; the only requirements are an internet connection and local banking services to transfer money directly to an account situated in India.
The recipient’s bank account details are also mandatory, and the bank’s credentials for a successful transfer. This method is suited for people seeking to avoid bank charges and make transfers from the comfort of their homes.
3. Wire Transfers
This is the most prevalent mode of money transfer; the sender has to leverage the services of a bank or a relevant financial institution. In turn, the bank or the institution gathers all the required information from the sender regarding the recipient and the recipient’s bank.
The verification process and subsequent communication between the banks (sender and receiver) take days.
4. Cashier’s Checks, Money Orders, and Bank Drafts
These options can be availed through a bank. Although there are fees to buy, they are much less expensive than wire transfer fees.
With cashier’s checks, money orders, and bank drafts, you are purchasing the amount you want to send in the currency of the recipient’s country, in this case, India.
With money orders and bank drafts, be sure to make a copy of the money order or current for your records. This form of money transfer is traceable if checks or drafts don’t reach the destination. They are more economical, albeit time-consuming.
5. Email Money Transfer
An E-mail money transfer is an online money transfer. No extra charges will be levied on this type of money transfer. It is like a bank to a bank transfer, but the sender does not need the receiver’s bank information here. The sender has to log on to his bank’s website and fill out a form.
The form contains a limited number of fields that needs to be filled by the user; the sender has to share the required security questions with the receiver. The bank sends an e-mail to the receiver, and to validate his identity, the receiver needs to answer the security question correctly.
If he does answer correctly, he will be forwarded to his bank’s website, asked for his account details, and complete the transaction.
Most people mistakenly assume that e-mail money transfer is not secure. No information related to security is shared over the e-mail. If the e-mail goes to the wrong recipient, they will need the correct answer to the security question to access the money.
The name e-mail transfer signifies that the initiation and notification of the money transfer are done via e-mail.
6. Money Transfer Platforms
Money transfer companies offer various money transfer services, including options to send money to India.
They provide a secure, fast, and inexpensive means of sending money from the UK to India. They often come with many benefits, such as better exchange rates, lower transfer fees, and excellent customer service.
There are various money transfer companies to select from, and you can choose the company most suitable for you based on their exchange rates, fees, and other features.
Transferring money from abroad has become easier with the ease and comfort of the UPI service. According to the latest research and analysis, data from NPCI, the National Payments Corporation of India.