Advertiser Disclosure

Many of the card offers that appear on this site are from companies from which Nova Credit receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Nova Credit does not include all card companies or all card offers available in the marketplace.

The 3 ways to save when you send money home

Share

Once Eduardo reached Illinois, started to settle into a new routine, and began to make money, he wanted to help his brother support his family. So, Eduardo asked his coworkers how they send money to their loved ones back home.

The 3 ways to save when you send money home

We and all of our authors strive to provide you with high-quality content. However, the written content on this website solely represents the views of the authors, unless otherwise specifically cited, but doesn’t represent professional financial or legal advice. As we cannot guarantee the accuracy or completeness of the published articles or sources referenced, please use the information at your own discretion.

Eduardo, a 43-year-old father of two boys, made the difficult decision to leave his home country of Mexico for the United States in search of work that paid better. His job as a farmhand was beginning to be too hard on his body and he worried for his sons’ future as violence in the area drew closer to their home. Once Eduardo reached Illinois, started to settle into a new routine, and began to make money, he wanted to help his brother support his family. So, Eduardo asked his coworkers how they send money to their loved ones back home. Here are the important tips they shared:

1. Explore your options before sending.

Sending with a Bank

One way to send money to another country is to use a wire transfer at a bank. A wire transfer sends money electronically from one bank to another and the money is normally available within 1-2 days. It’s important to know that both you and the person you’re sending to need to have a bank account to complete a wire transfer. Banks also charge high fees for wire transfers and they do not normally have the best exchange rates on the market. Sending money with a money transfer company instead of using a wire transfer at a bank can save you money and is an option if either you or your recipient doesn’t have a bank account.  

Using a Money Transfer Service

There are a lot of money transfer companies that allow you to send money internationally. You can send money online using your debit card, credit card, or bank account, or you can go into a money transfer store and pay in cash. Your recipient can choose whether they want to receive the money in their bank account or pick up in cash from a money transfer operator or their partner agents. Some companies even offer home delivery in certain countries. Although money transfer companies charge fees, they are normally lower than bank wire transfers fees and they offer better exchange rates so more of your money gets to where it’s going. Ria Money Transfer is one option, and their online and brick and mortar store services allow domestic and international money transfer to over 155 countries.

Comparing Exchange Rates and Fees

If you choose a money transfer service, it’s important to compare exchange rates and fees. Not all companies offer the same rates. But, be sure you are considering both the exchange rates and fees. If one company offers the best exchange rate, but it also charges a higher fee, it may seem like you’re saving money, but you could save more with another company.  

 

2. Take these steps to lower the cost.

Look for Promotions

It can save you money to take advantage of discount codes and other promotions that money transfer companies offer throughout the year. To stay competitive, money transfer companies often have promotional offers. Ria Money Transfer, for example, offers a $10 gift card as a Welcome Bonus when you create an account with them and a $20 gift card when you refer a friend who then sends their first money transfer. Money transfer companies also stay competitive by offering seasonal promotions around a receiving country’s holidays (like, Diwali in India, or Ramadan in Muslim countries) or just general holidays like Mother’s Day, or Christmas. Before choosing a company to send with, it can help you save money to look into available promotions.  

Send More to Save More

The fees that money transfer companies charge are affected by the amount of money you send. For example, if you send $10 you might pay a $1 fee, but if you send $100 you might pay a $50 fee instead of $100 ($10 transfer x $10 ($1 fee/transfer) = $100). So, rather than sending $10 ten different times, it is better to send a one-time transfer of $100.  Sending a larger amount will save you money in the long run.  What we have noticed, people who have sent money internationally for a long time often have one trusted person (usually a relative) back home to receive the money, and have that person distribute the money to other family members, or budget the money for the rest of the month, until the next money remittance comes in.

<CALL-TO-ACTION>

3. Pay in the way that’s best for you.

Pay with Your Bank Account  

Paying for your money transfer online using your bank account is usually the least expensive option, but the money may take longer to get to your recipient (up to 4 business days). Using a credit or debit card may require a small fee because the money arrives at its destination more quickly (usually within 15 minutes). So, if you need the money to get to your recipient quickly, using a card* and creating your transfer online may be your best option. If you aren’t in a rush, however, paying with your bank account can save you money.  

*Keep in mind that your credit card company may charge a cash advance fee. Please contact your credit card company to find out or use your debit card to avoid fees. If you have a debit card, this is a better option over a credit card as you will not be charged a cash advance fee.

Pay with Cash

Some money transfer companies have physical stores that you can walk into and pay with cash. Although you might pay a few dollars more than if you were to send money online, this can be a good option for people who don’t have internet access or a debit/credit card, underbanked, or for people who just prefer to pay in cash.  

Whether you’re new to sending money internationally, like Eduardo, or you’re just looking for more ways to save on your transfers, consider the three tips above.  

Code (ID Name): <call-to-action>

New to the U.S. and looking for a credit card?

Explore credit cards that accept international credit history.

Code: <call-to-action-a>

DID YOU KNOW?

You can use your international credit history to apply for a U.S. credit card

Credit history used to stop at the border—until now. Your existing international credit history could help you get credit in the United States.

Code: <cta-amex>

New! You can use your international credit history from Australia, Canada, India, Mexico and the UK to apply for an American Express ® Personal Card in the U.S.

Code: <cta-mpower>

Use your international credit history to apply for a loan to fund your studies in the U.S. with MPOWER Financing.

Code: <cta-realestate>

Use your international credit history as part of your rental application

Code: <cta-arrive>

New to the U.S.? Subscribe to our newsletter, Arrive, for newcomer news and guides to decoding life in the U.S.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Code: <cta-boundless>

Applying for citizenship or a marriage-based green card

File online and save thousands in fees through Boundless

Learn More

Article Snippets

Code: <cta-articles>

Code: <cta-facts>

Code: <cta-uscis-time>

Processing Time:

When can you see updates to your USCIS case status?

Enter your details to check your USCIS case status and receive notifications from Nova Credit.

Thank you! Your submission has been received! Please check your email for next steps.
Oops! Something went wrong while submitting the form.

Code: <cta-uscis-status>

Check your USCIS case status update

Enter your details to check your USCIS case status and receive notifications from Nova Credit.

Thank you! Your submission has been received! Please check your email for next steps.
Oops! Something went wrong while submitting the form.

Code: <cta-h1b-status>

Check your H-1B case status update

Enter your details to check your H-1B case status and receive notifications from Nova Credit.

Thank you! Your submission has been received! Please check your email for next steps.
Oops! Something went wrong while submitting the form.

Code: <cta-h1b-times>

Check your H-1B case processing time

Enter your details to check your H-1B processing time and receive notifications from Nova Credit.

Thank you! Your submission has been received! Please check your email for next steps.
Oops! Something went wrong while submitting the form.

Code: <cta-build-credit>

Build your U.S. credit history

Where are you from?

Depending on where you are from, you might have different opportunities to build your credit history in the U.S. For example, selected banks accept credit history from selected international countries, meaning you might not even have to build credit in the U.S. to get approved for a credit card.

Select your country to receive your personal credit builder guide in your inbox.

Thank you! We sent you an email with a guide and instructions on how to get started. Check your inbox!
Oops! Something went wrong while submitting the form.

Code: <cta-how-to-build>

How should you build credit in the U.S.?

There are multiple ways to build credit, each with their own hurdles. Enter your details to see what’s the best for you.

Thank you! We sent you an email with a guide and instructions on how to get started. Check your inbox!
Oops! Something went wrong while submitting the form.

Code: <cta-no-ssn>

No SSN? Find out which card is best for you

Thank you! We sent you an email with a guide and instructions on how to get started. Check your inbox!
Oops! Something went wrong while submitting the form.

Code: <cta-free-consultation>

Free Consultation

The Alcorn Immigration Law team knows immigration yields innovation. We help you obtain a visa, green card or citizenship so you, your employees, and your family can live and work in the U.S.

For a free consultation to explore the best immigration options given your circumstances and goals, contact us and mention Nova Credit.

Thank you! We sent you an email with a guide and instructions on how to get started. Check your inbox!
Oops! Something went wrong while submitting the form.

Code: <cta-j1-fica-refund>

Check if your eligable for a Tax refund

Thank you! We sent you an email with a guide and instructions on how to get started. Check your inbox!
Oops! Something went wrong while submitting the form.

Code: <cta-j1-fica-refund>