Did you know that the United Kingdom is one of the countries with the highest money transfer transactions in recent years? In fact, it is one of two nations that make up the most remittances in 2018, according to the World Bank Bilateral Remittances Matrix.
International business money transfer is a critical process for many UK workers and businesses, especially those sending funds to India. This is because it enables them to support loved ones or manage business transactions swiftly and safely.
Understanding the steps and considerations involved in remittance can help you save time and money. This guide offers important advice on crucial factors that can help you ensure time- and cost-efficient money transfer transactions.
1. Understand Exchange Rates
Exchange rates are the value at which a currency can be converted to another. These are constantly changing, influenced by various factors such as:
- Economic conditions
- Political events
- Market demand
Knowing how these fluctuations work is essential when you send money overseas, as they directly impact the total amount received.
Take, for instance, an exchange rate of 100 Indian rupees per pound. A drop in this rate can reduce the net amount your intended recipient will receive. Even slight fluctuations can have a significant effect, especially for large transfers.
Make sure you research and compare exchange rates before making a transfer. It also pays to look into online forex platforms as they often offer better rates than traditional banks, which might include hidden costs and markups.
2. Evaluate Transfer Fees
Transfer fees are another key factor when sending money abroad. They come in two main types:
- Flat fees are fixed charges that don’t change no matter how much money you send.
- Percentage-based fees are calculated as a percentage of the amount sent.
To compare provider fees, you must look at the fee type and total cost.
For example, a flat fee might be GBP20, while a percentage-based fee could be 2 per cent of the amount sent. For a transfer worth GBP1,000, this would also be a GBP20 fee. But for larger amounts, percentage-based fees can add up quickly.
To minimise transfer costs, consider providers with competitive rates and lower fees. Online platforms often charge less than traditional banks, but make sure you perform due diligence first to ensure the low cost does not come with security risks.
If you want to save money, timing your transfers when there are favourable exchange rates can also help. Additionally, some providers offer discount privileges if you use specific remittance forms.
3. Consider the Transfer Speed
Transfer speed is crucial, especially if the need for funds is urgent. This is where instant transfers can be useful because they can be completed within minutes.
Traditional bank transfers often take one to five days, whereas modern online services can transfer money within 12 to 48 hours. However, you have to note that speed may come with additional costs.
Check the provider’s estimated transfer times and inquire about the corresponding fees. If you need to send money quickly, opt for services known for speedy and reliable remittances.
Always confirm the guaranteed transfer time with the provider before making the transaction to avoid delays. By prioritising speed, you can avoid unnecessary delays and ensure timely support for your loved ones or business needs.
4. Ensure Robust Remittance Security
Security is paramount when you transfer money internationally. Choose reputable, secure money transfer services that use encryption and fraud prevention measures.
When looking around, ask the remittance service providers if they have a strong customer authentication (SCA) policy to reduce fraud. This can come in the form of multi-factor authentication using PIN, password, or biometrics.
You can verify the credibility of money transfer services by checking ratings, reviews, and regulatory compliance.
Ensure the provider follows security protocols for digital payments to protect their customers’ money and personal information. Using trusted services with robust security features ensures safe and reliable transactions for you and your intended recipient.
5. Identify the Best Recipient Option
Recipients in India can receive money through various methods, including:
- Direct bank deposits
- Cash pickups
- Mobile wallet transfers
Each option has its convenience and accessibility. For instance, bank deposits are straightforward and secure, but cash pickups may be more accessible for recipients without bank accounts.
Direct bank deposits are ideal for those with access to banking services. Cash pickups are useful in rural areas with limited banking infrastructure, allowing recipients to collect money from designated locations.
Meanwhile, mobile wallet transfers offer convenience for tech-savvy recipients. This method enables recipients to receive money directly into their mobile wallets, making it easy to access funds for everyday expenses.
Choose the option that is best suited for your recipient’s preferences and needs to ensure a smooth process
For Efficient Money Transfers
When transferring money from the UK to India, consider exchange rates, transfer fees, speed, security, and recipient options. Compare providers to find the best rates and minimal costs. Take the time to do research and choose the most reliable and cost-effective service for your needs.
