India is witnessing an unparalleled increase in the count of study abroad students. Both students and parents now view studying abroad as a way to explore different countries and secure potential employment opportunities abroad, in addition to receiving a premium quality education.
However, these aspirations come with a substantial price tag, leading parents to employ various methods to economize wherever feasible. Since studying abroad necessitates the payment of tuition and expenses in foreign currencies, the expenses related to currency conversion can considerably inflate the overall educational expenditure, unless one exercises prudence. Therefore, an essential aspect of pursuing international education involves the adoption of methods to minimise charges on foreign money transfers.
Some of the economical ways include choosing a reliable channel, checking the markup rate, and comparing transfer fees. Furthermore, choosing an easy digital process is an essential step to reduce charges on overseas transfers. Moreover, using forex cards and wire transfers for specific purposes also minimises the overseas funds transfer charges.
Ways to Minimise Charges on Foreign Money Transfers
When sending money abroad for someone’s education, it is important to select a reliable and affordable method for international payments, as these transactions are recurring. Factors to think about include convenience, speed, and cost-effectiveness.
Select a Reliable Channel
Traditional banks frequently impose steep markups and may appear to be the most reliable option for transferring money, but they can impose excessive fees and charges. Thankfully, technology now offers more affordable alternatives for foreign currency transfers. Opting for a secure and dependable online service provider is a viable choice, especially given the substantial transaction amounts involved in international money transfers.
Prefer Checking Markup Over Interbank Rate
Furthermore, to minimise charges on international money transfers it is crucial to consider the interbank rate. These live rates are readily accessible through search engines and business news channels. You might be surprised by the considerable extra charges added by banks and local currency exchangers. This markup can range from 0.5% to 5% above the interbank rate. Opting for an online platform with minimal markup could lead to savings ranging from INR 5,000 to INR 40,000 on a USD 10,000 transfer. Given that college fees usually exceed USD 10,000, the potential savings could be substantial. The closer your transaction rate is to the interbank rate, the more you stand to save.
Opt for a User-Friendly Digital Process
For customers, a foreign exchange money transfer platform becomes more effective when it provides either the interbank rate or a conversion rate that closely aligns with it. Customers are given the option to opt for a completely digital procedure, avoiding the complex bank processes that involve extensive paperwork and often multiple in-person visits. This allows individuals to conveniently send money abroad from their homes with minimal effort, just a few clicks required. This approach not only saves time and reduces paperwork but also offers the flexibility to select the most suitable timing for booking the forex rate. Moreover, using a simple online process helps minimise charges on foreign money transfers.
Stay in tune with Fly Finance News Desk to get regular updates on study abroad loans and international money transfers.
