Do you work in the UK and send money to home abroad? If you use money services regularly, are you sure you’re getting your money’s worth? Have you really found the cheapest way to send money abroad? It is important to look at all the options available, so that your hard earned money is not being spent on a bad remittance service. Here are 5 signs that you may be wasting your money on Transfer Services when transferring money from the UK to your country:
1. You do not know what an Exchange Rate Margin is
Banks have an ‘official rate’ for trading, otherwise known as a inter-bank rate but each transfer operator applies their own rate when exchanging your currency. The difference between the official rates and the applied rate could be as little as 0.001 cent per unit, but remember not to underestimate that because it can cost you dearly once you multiply it by how much you’re sending.
2. You always rely on INSTANT money transfer services
Do you really need to send money instantly?
An instant transfer from the UK to your country will cost a larger transfer fee and an exchange rate fee, for example if transferring through Western Union. If you opt for next day transfer, the transfer fee will be cheaper and the exchange fee will remain constant. Just imagine how much money you’re losing if you use instant money transfer services regularly.
3. You believe you can find a deal with Zero Transfer Fees
Zero Transfer Fees don't exist. Banks and transfer operators do not do free transfers. You think you are getting the best exchange rate from the UK to your country, but whatever they don’t charge as a ‘fee’ is recovered—sometimes as much as three times more— through high currency exchange rate margins.
As a consumer, the best thing you can do is equip yourself with information so you know what’s actually going on and so you don't waste your money on phony advertising claims.
4. You have not changed money transfer services in many years
You might always use MoneyGram because they have branches near you. But have you considered what the cost of that loyalty?
Because you haven’t checked other options, you may not know that there are cheaper, faster or more reliable money transfer operators around.
It’s hard to entrust your money to a company you may not know. To get over your doubts, try sending a small amount first. See if that works. Then you can see whether it’s worth switching or not.
5. You have not compared the rates
Not all remittance services are the same. Their rates, reliability and their service fees will vary so it’s wrong to assume that one is just as good as the other.
Migreat in partnership with TawiPay has a free money transfer comparison service that enables you to find the cheapest way to send money abroad.