Do you want to know how to transfer money to a foreign bank account? Do you need to know step-by-step guidelines in order to perfect this process? Then read this article for all the information in a few simple steps.
1. Wire Transfer is the Most Expensive Choice, but the Most Common. Sending money is really very simple once all the information is received and documented. The fees are substantial, so it is not worth sending a small amount of money. In order to transfer money to a foreign account, you will need to know some basic information:
- Name of the receiving bank.
- Routing or banking number.
- Full name of the person’s name on the account.
- Account number of the person receiving the money.
2. Sending Bank Information. Besides needing all the information of the receiving bank, the person sending the money usually will have a sending bank and most have account numbers in the states. If using a large bank that has experience in money transfers to foreign accounts, this transaction is easier.
3. Notify the Receiving Bank. Although it is not necessary to do so, many will notify the receiving bank that an impending wire transfer is coming. By taking this courtesy step, the bank is aware of the wire transfer and can let you know what fees are involved.
4. Fees for Both Banks Involved. Most foreign banks will charge a fee for receiving and processing the wire transfer. In addition to the receiving bank, the sending bank will also charge a fee. It is best to know all fees before proceeding in case an alternative plan is necessary.
5. Exchange Rates. Some banks will charge a commission or higher exchange rate on receiving in a different mode of money other than the normal currency, such as dollars to pounds. Although the rate is not significant, it is still advisable to check on all fees that will be charged.
6. Money over $10,000 Being Wired. Any transaction over $10,000 must be documented and reported by the sending and receiving banks. It is advisable to keep the amount under $10,000 unless you want the amount reported. Anyone having a foreign bank account with over $10,000 must report that foreign bank to the Internal Revenue Office using form TDF 90-22.1. There is also a possible penalty and jail time involved for failure to report.
7. Western Union, Moneygram and Travelex. Depending on the amount of money being sent, one of these instant wire fees might be a better choice. Take in to consideration the exchange rate, both fees at the receiving and sending banks and then compare the benefits of one of these very famous wire transfer centers.
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