Learn how to transfer money without overpaying. These money transfer options provide the best balance of speed, convenience, and price.
Ten years ago, transferring money was slow, inconvenient, and expensive. To fill out the necessary forms for a wire transfer, you’d have to go (in person!) your bank or the closest Western Union station, wait in line, and fill out a pile of paper forms.
Today, it is relatively easy to transfer money. Some companies offer special deals that allow you to send money for free. Many companies exist exclusively to facilitate money transfers, and most banks have digital transfer options available on their mobile app or website. Western Union has also streamlined their process by providing channels to transfer funds digitally.
But even these streamlined transfer processes often hide costly transactional fees. Let’s take a look at the best methods for transferring money — and at how much each will cost you.
Domestic transfers
Person to Person (P2P) transfers
If you are transferring less than $10,000 to someone who lives in the same country, a P2P app like Skrill or Paypal can move your money in mere minutes. All you have to do is link the app to your debit card.
If you want to transfer between bank accounts, it can take one to three business days. It is generally free to transfer money between bank accounts. However, if you’re sending money as a personal payment using a debit or credit card, you’ll usually be charged a small transactional fee — often around 3-5% of the money sent. Prices will vary depending on which app you are using.
Cash transfers
If you don’t like the idea of sending money using an app on your phone and you want to transfer straight cash, there are companies that provide this service. Walmart, for example, allows you to transfer funds from one Walmart to another one in the country. To transfer cash in this way, you simply hand over cash at a physical location. Within ten minutes, your recipient can pick up cash at their corresponding location.
The transaction fee for cash transfers is fairly low. At Walmart, for example, customers pay $4.50 to transfer up to $50, or $9.50 for up to $950. Western Union, MoneyGram, and AccountNow are other companies that facilitate cash transfers.
Cash transfers are a good option when you only need to transfer a small amount of money, or when your recipient prefers to be paid in cash.
Bank to bank transfers
If you want to send more than the $10,000, a bank might be your best bet, such as Chase QuickPay. Bank transfers ensure security and speed, but as a result, their fees are higher. It costs an average of $25 to send money via your bank and $9 to receive it.
International transfers
There are two fees to be aware of when you transfer money internationally: the upfront fee for the transfer and the foreign exchange margin.
Upfront Fee
Some online platforms allow you to transfer money internationally for a low upfront fee. WorldRemit, for example, has a $3.99 upfront fee for most countries.
