There are many reasons why you would like to send some money back home. You would like to help your family members or send them gifts. What the different options related to money transfer? This is quite confusing to understand as the exchanging rates keep changing along with the electronic options. Following are some of the basics.
If you possess a checking account in America, You could think of simply mailing your personal check to your family. But the person receiving the can be confused as they will be receiving check in U.S dollars. They can exchange it to their home currency which is an expensive process. Moreover sending a check is not safe as it can go into the wrong hands who can attempt to cash or exchange it.
You can use cashier's check as it is safer compared to personal check. Cashier's check ensures that the account holds sufficient funds to pay that check. This check is a safe check and if you want to get this check all you need to do is go to the bank directly and give them the amount of cash for which you want the check. You can send a cashier's check overseas through Federal Express or any other mail system which will help you to trace if your check is lost.
A foreign currency bank draft is a cashier's check in a foreign currency. You have to send a draft by requesting to do so at any branch. You can pay the money like the cashier's check or the amount can be drafted out of your account. You need to specify the receiver's name and address. The time taken by the package to reach the destination depends on the mail system and the destination. It may take few weeks for the check to reach India while for European countries the check may reach earlier.
At the receiving end the person can deposit the check into his account. If the receiver has an appropriate identification he can cash the draft at any bank. This does not require a receiver to have a bank account. A proper identification is very necessary to cash the check.
If time is not an issue, a foreign currency draft is easy, cheap and a safe mode to send money anywhere in the world.
Wire transfer is the most secured and fastest way to send money overseas. This can be done at any branch by paying cash up front or by drafting your account. The receiver has to have an account in the foreign country. The person's name, account number, bank name and the location of the bank should be known.
If a person does not have a bank account, mail a draft directly or consider using Western Union or MoneyGram. Wire transfers are fast and depending on the destination country it may take an average of two to three days.
The two popular companies who send international money transfers are Western Union and MoneyGram. Western Union serves 170 countries while MoneyGram services across 120 countries. You may pay up front by cash or credit card. The transfer is sent in the local foreign currency.
Transfers will take just a few days, but may depend on the destination country. The price can also vary depending on location, but it's usually approximately $15 for the first $100, and $7 per additional $100. Each company offers additional services - some at a cost, and some free of charge - like direct delivery or a phone call to tell the receiver that the transfer has come through. Check their Web sites for further details.
These companies are convenient because neither you nor the receiver needs to have a bank account, and Western Union's online service is easy to use. This route can, however, be more expensive than using a bank.
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