Wiring your money, while efficient and a massive time saver, can get pretty expensive when you don’t expect it. There is a fee that banks charge when transferring your cash. It’s imperative that you pay attention in order to not be encumbered by the burden of paying for additional fees. But before that…
What is a wire transfer?
A wire transfer is an electronic transfer of money between banks. Wire transfers also allow two people from different parts of the world to send money to each other, no hassle. If you need a secure way to transfer money electronically you can always choose a wire transfer. Not only is the service quick, but it is also a massive convenience as well. It can easily be done through the Internet – either via an online bank account or a money transfer service, such as Venmo or Paxum.
Banks generally charge a flat fee for outgoing wire transfers, the price ranging between $15 and $50 in the United States. These fees exist because there’s a cost when transferring money between banks, and is a way for banks to generate revenue. This can be disadvantageous, because it can contribute to a large percentage of the money needed for transfer, especially for smaller transactions. Additionally, certain banks limit the amount of money you can wire per day, so paying for extra fees might be inevitable when wiring large sums of cash.
Now we got that clear, here’s some fees that you should take note of when sending and receiving money, be it domestic or international.
Consumers who frequently send or receive money via wire transfers should research how much fees certain banks charge them, and look for ones that generally charge lower fees for future transactions. As an example, here’s the top 5 banks and the price of incoming and outgoing wiring fees.
Name of Bank
Incoming Domestic Wire
Outgoing Domestic Wire
Incoming International Wire
Outgoing International Wire
$15 ($0 if coming from Chase)
$15 ($0 if coming from Chase)
$0-5 for foreign currency;$40-50 for U.S dollars
Bank of America
$0 for foreign currency;$45 for U.S. dollars
Certain banks may offer free wire transfers, or waive fees for certain bank accounts, like PNC Bank or Capital One 360 Bank.
Ways to cut wire transfer costs
Convert your dollars into foreign currency
Some banks may offer lower fees for sending abroad if you allow them to convert U.S. dollars into foreign currencies (ex. Yen, Euro, Peso). Take advantage of this whenever you can.
Arrange for the wire transfer online
Certain banks, like Chase, may incur an extra $10 charge when requesting a wire transfer from a banker, whether at the bank or on the phone. Arrange for the transfer via the Internet whenever you can.
Use free payment services
There are many cheap ways to do a wire transfer. There are free payment service apps, such as Paxum, that allow you to send money from one bank to another, no extra fees attached.
Wiring fees can put a deeper hole in your wallet, especially if you depend on wiring money frequently. However, if you play smart and take note of certain banks’ wiring fees, you may end up saving more money in the long run.