February 8, 2012

How to Transfer Money Abroad

Knowing how to transfer money abroad is useful, even for the average person. You do not have to be an international jet-setter, or a business owner with branches all over the globe.

It’s not just everyday transactions that may require that some money is sent from home to abroad, but often it can be in case of an emergency. You may have an uninsured family member who has an illness on holiday, and needs funds to pay for a short stay in a hospital. You may be in trouble abroad yourself, and need to talk someone through sending you some emergency funds to help you get home. You may simply need to transfer funds from an account based in your country of origin, to another one in the country where you currently reside.

There are several ways to transfer funds abroad.

Open an Offshore Banking Account

This is useful for if you are living or working abroad for a long duration. Not only are these accounts specifically designed for international use, but you can also take advantage of unique investment opportunities which are only available with these services.

One of the best accounts currently available is a Lloyds TSB Offshore Banking Account. You can choose which currency you wish to have you balance in, and you can choose from many different currencies when it comes to withdrawing funds. It also comes with a Visa debit card which is specifically designed for use internationally.

A Lloyds TSB Offshore Banking Account is a must for anyone who travels or works abroad on a regular basis.

Bank Transfer

To transfer money abroad from a bank based in your home country to a bank account based abroad; you simply need an IBAN number. This is the international bank account number which is specifically designed for international bank transfers.

The IBAN number sometimes appears on bank statements and chequebooks. But if it doesn’t a simple call to your bank should provide the information you need once you have answered the security questions. You may also be able to see your IBAN number if you have an online banking service activated with your bank account.

Then it’s a simple case of giving the number to the party sending the funds. A bank transfer can be initiated by walking into a branch and asking, calling a telephone banking hotline or initiating a bank transfer with an online banking service.

If you initiate the transfer by walking into a bank and talking to a cashier, some of them are ignorant about how international bank transfers work. They may claim that you need more information than the IBAN number. This is not true, all you need is the IBAN number of the account you are sending the money to. If they refuse, insist on talking to the bank manager or a supervisor.

The benefit to sending money in this way is that it’s very fast.

Using a Third Party Financial Service

This is sometimes necessary, but should not be your first option. This is simply because these third parties often charge a fee. Sometimes it can take a long while for funds to clear as well.

Paypal for example charges a fee for most types of transfer, as well as a fee for converting currencies. It also requires that both the person sending and receiving the funds have a Paypal account linked to a bank account.

However, if you want to transfer money abroad for goods or a service, you do benefit from the ability to easily reclaim the money if the other party fails to provide.

CC Marcel Germain