Basic points to know when you remit money to India
When you want to remit money to India from the UK or from any other foreign country, it is important to be aware of some of the fundamental concepts involved here. These will help you to stay safe from exploitations from unauthorised money transfer agencies and the newbies in this field. NRIs work very hard on foreign soils to send money back to their families in India. If you are working in the UK and keep sending money to your family, wouldn’t you want to be sure that your money has reached them safely or not? Here are some points that you should be aware of to be sure of the destination of your hard-earned money.
Evaluate the options
Gone are the days when you had to depend on agents or personal means to send money to your family in India. In today’s tech-savvy world, there are other ways like internet transfer, online money transfers, international money transfer services and much more. You should be aware of the pros and cons of each of these types so that you can make the right decision. You can check with your bank about the various details of these processes, exchange rates, commission charged in each, and processing time and fee involved in these methods. This will give you an excellent idea as to the one that you need to choose based on your urgency.
Amount of money to be transferred
An important point that you should know is that money transfers to India do involve some amount of transfer fees. Therefore, you should look at transferring bulk amounts of money to your family than sending them small amount every now and then. Receiving a large amount is not just helpful for your family, it is also helpful for you in the sense that you can save a lot of transfer fees. When you limit your transactions, the transfer fees automatically come down. This, however, has to be done, only after checking with your bank or agency about the maximum amount allowed by them towards transfers. In a bid to transfer a bulk amount, when you go beyond the maximum amount allowed, you have to pay quite a high penalty fee.
Exchange rates vs. processing fee
Processing fees are sometimes known by term, transfer fees as well. When you remit to India, it is very important for you to understand the meaning of the terms, exchange rates, and processing fee. Compare these two rates and choose a bank or agency that offers you a higher exchange rate. Never make transfer fees as your priority. More often than, some banks and agents try to attract you by charging very low transfer fees for your transaction. However, in reality, they would be giving you a low exchange rate, a point which you tend to ignore at times. That’s why experts suggest that it is still alright to pay a higher processing fee if you are given a higher exchange rate. Eventually, you want your family to get a good amount of money as per the prevailing exchange rates, isn’t it?
Evaluate the options
Gone are the days when you had to depend on agents or personal means to send money to your family in India. In today’s tech-savvy world, there are other ways like internet transfer, online money transfers, international money transfer services and much more. You should be aware of the pros and cons of each of these types so that you can make the right decision. You can check with your bank about the various details of these processes, exchange rates, commission charged in each, and processing time and fee involved in these methods. This will give you an excellent idea as to the one that you need to choose based on your urgency.
Amount of money to be transferred
An important point that you should know is that money transfers to India do involve some amount of transfer fees. Therefore, you should look at transferring bulk amounts of money to your family than sending them small amount every now and then. Receiving a large amount is not just helpful for your family, it is also helpful for you in the sense that you can save a lot of transfer fees. When you limit your transactions, the transfer fees automatically come down. This, however, has to be done, only after checking with your bank or agency about the maximum amount allowed by them towards transfers. In a bid to transfer a bulk amount, when you go beyond the maximum amount allowed, you have to pay quite a high penalty fee.
Exchange rates vs. processing fee
Processing fees are sometimes known by term, transfer fees as well. When you remit to India, it is very important for you to understand the meaning of the terms, exchange rates, and processing fee. Compare these two rates and choose a bank or agency that offers you a higher exchange rate. Never make transfer fees as your priority. More often than, some banks and agents try to attract you by charging very low transfer fees for your transaction. However, in reality, they would be giving you a low exchange rate, a point which you tend to ignore at times. That’s why experts suggest that it is still alright to pay a higher processing fee if you are given a higher exchange rate. Eventually, you want your family to get a good amount of money as per the prevailing exchange rates, isn’t it?