There are many ways to transfer money from one country, or currency, to another. Many charge high commissions or fees and take a large cut on top with a bad exchange rate. How about one that claims to be 8 times cheaper transferring money than your bank? Read on to find out more...
What is TransferWise?
Unlike banks and other money transfer agencies, the cost of sending money is way too cheaper on TransferWise. You might hear about offers such as zero commission or zero fees but stay cautious. These service providers may work such that the conversion rate itself is pegged lower than the actual value. What you end up with is plenty of hidden charges. So you end up paying more. With Transfer Wise you get the market value of your currency.
Why is it so novel?
It works on a peer-to-peer method. Suppose you want to send money from U.S to U.K. This website will find another transaction happening in opposite direction - from U.K to U.S. It will then move the money locally, resulting in huge savings.
Besides, TransferWise has its account on plenty of banks across the world in several countries. Once you send your money to a Transferwise account in your country, it will be locally transferred to recipient from a Transfer Wise account in his/her country. This makes the transaction completely local and hence there is no bulky fee involved. It is totally a new type of banking aimed at making international transfers faster, easier, safer and much more convenient than any other means. It is also known as borderless transfers, the Borderless Account.
How does TransferWise work?
To begin with, you just need to create a free account on the website TransferWise.com. Once you login you can enter the money you want to send and the currency. You can also see how much the recipient will receive. This is the guaranteed price for the next 24 hours and it will change after that depending on the currency updates. You need to enter your bank details for refund. So in case something goes wrong, you will receive your money back to your bank account.
How to send to an email ID?
In case, your recipient has not disclosed the bank details or for some reason does not want to give you the details, you can send it to his/her email ID. What happens here is, the recipient will receive an email with instructions for entering the bank details by on his own. After this, the money will be transferred to his account. Your recipients can create a Transferwise account and receive the money directly there too. After that, he/she can send that money to anyone else or to any of his/her account. This makes the transaction highly secured and there is no scope for any abuse in any manner.
How much is the fee for transferring?
There is no set up cost, no cost for adding more currencies, no cost for receiving and absolutely no cost for getting local bank details. But there is cost of conversion and there is a cost of withdrawal.
The minimum amount limit and the percentage fees for conversion varies from one country to another. Let's look at a one example - Dollar to INR: It is $2.70 up to $300. When you cross that minimum, the fee is around 0.9%. Transfer wise allows you to send money to India but it is not accepting deposits from there.
This is the cheapest rate compared to any other service provider or bank. There are no hidden charges as such and the system is completely transparent. There is no fee that the recipient has to pay for receiving the money. The fee rate is disclosed much before you carry out your transaction. So you can easily compare this to other sites to check if it is low or high. The site has an inbuilt comparison tool that compares the price as well as the currency exchange rate with other sites. This is 8 times cheaper than any other system available out there. You do not have to pay a separate fee, instead, the fee amount is adjusted within the amount you transfer.
Please feel free to leave details of your experiences in the comments section if you have used Transfer Wise.