When Is the Best Time to Send Money Overseas
A remittance or money transfer is money sent from one party to another. In general, it refers to payment for any bill or invoice, often made through an electronic money transfer service. Remittances are usually sent to another country.
There are a number of reasons why people would need to make international money transfers:
- Migrant workers send part of their earnings to their family in their home country to use for necessities such as food, clothing, health care, savings and more.
- Parents send money to children studying abroad to pay for tuition, school fees, supplies and living expenses
- Employers send salaries to employees residing in other countries.
- People pay for investments made in other countries.
In this blog, we’ll talk about ways to identify the best time to send money overseas so you can have peace of mind that your money is safely and promptly transferred to another country, every time.
3 Tips for Determining the Right Timing for Sending Money Internationally
When is the best time to send money overseas? There is no fixed time of day or date of the month that is considered the best and only time to send money abroad, for everyone in the world. However, that doesn’t mean you should go ahead and rush to send money the minute you have the funds to do so. If the timing is not favorable, you might find yourself paying larger fees, or your recipient might get a smaller amount from your remittance.
The key is to understand the different factors that are currently influencing the foreign exchange markets and to determine the right timing to make your transfers. Doing so can help make the amount you send go further, and even help you save money on your transaction.
1. Check if the foreign exchange rate is in your favor.
Foreign exchange is the conversion of one country’s currency into another. The foreign exchange rate goes up or down over time, and it also differs among banks and companies that you can choose from to make the exchange.
When is the best time to exchange money? It’s when the exchange rate is high so you can get more of the currency you want to buy. So when you transfer money abroad at this time, your recipients can do more with the amount.
Worldwide currency markets can be affected by factors such as:
- Inflation. If a country’s inflation rate is low, its currency’s value goes up.
- A country’s interest rate. If it goes up, a currency’s value does too.
- The mid-market rate. This refers to the exchange rate banks use to trade foreign currency between each other, and it changes frequently depending on many factors.
- Imports and exports. A country’s currency value goes down if the country spends more money on importing goods compared to what it earns from exports.
- Political events and global economic trends. Political instability and significant worldwide events (e.g., a global recession) affect currency values.
Check a reliable currency converter in the UAE and wait until the exchange rate is high before initiating an international money transfer.
2. Consider the ideal time and day.
Is it the best time of day?
If you are sending money online, you can make the transfer at any time, wherever you may be. However, if you are sending money from your bank account to another bank account in another country, you need to consider that the exchange of information between the different banks will need to take place during their regular banking hours. If you perform any step of the process outside of their hours, you have to wait until the banks are open for the transaction to continue.
To ensure that your remittance is received at the earliest possible time, consider the time of day when the involved banks are all open so that the transfer can be completed with no delays.
Is it the best day of the week?
When is the best time to send money to India from the UAE, for example? Should you transfer money during the work week or on a weekend? Generally, markets around the world are closed on the weekends, and in some countries, not all weekends fall on a Saturday or Sunday. Check your location and your remittance’s country of destination for these details.
Is it the best time during the month?
Most international money transfers take place during:
- The last five days of the month
- The first 10 days of the following month
Since these are the busiest times for transfers, and because financial institutions tend to hike up fees during these instances, it’s wiser to choose a different time to send money. If there is no urgent need for you to send the money immediately, opt to do it during off-peak times in the middle of the month to avoid long queues, delays and fee increases.
Is there a bank, public or religious holiday?
These events can cause delays for international money transfers, so make sure to check the customs, holidays and their duration for both the sending and receiving countries before you initiate a transaction.
3. Find out when the fees are fair.
Money transfer service providers set their own fees, and many charge highly competitive rates for remittances. Some may set a flat fee for every transfer while others add a markup to the exchange rate. Fees may change depending on the amount of money being sent. Some providers may not be transparent with recent fee hikes.
Compare several companies to ensure that the costs suit your budget. To determine the total cost of your overseas money transfer, ask the provider:
- All the fees you will be charged (both upfront fees and hidden fees)
- Whether you are getting the real-time exchange rate
- The amount the recipient will receive in their bank account
Helpful Tips for Sending Money Abroad
Choose the best money transfer service for your needs.
Some of the most common ways to send and receive money abroad are through a bank’s electronic payment service or by using an electronic money transfer service. For a fee, the money is conveniently transferred and it can take mere minutes for the funds to reach the intended recipient.
Keep in mind that some money transfer methods may be simpler to do and more affordable, but will take longer to complete, while others may be relatively more expensive but will get the money to your intended recipient quicker. Whichever service you choose, make sure you use a trusted and reputable provider.
Check that you have all the information you need before making the transaction.
Are you certain that your recipient can access the money transfer service you are using? Do you have the correct phone number and email?
Providing incorrect or incomplete information when sending money overseas could cause delays or entirely prevent you from successfully completing the transaction. In worse cases, you could end up sending the wrong amount of money, or even sending the money to the incorrect person. That’s why you need to check your details more than once to avoid making costly mistakes.
Be wary of potential scams.
There are plenty of scammers posing as legitimate service providers, so it pays to be aware of suspicious steps or requests that could be attempts at stealing your money.
Here are examples of signs that you might be dealing with a transfer scam:
- You are being rushed to part with your money.
- You are asked to share personal information or passwords.
- You are offered unusual means of wiring money.
- You are sent a QR code that asks you to approve a request to “collect”.
- You are told you’ll be receiving a commission if you move large amounts of money.
With a trusted remittance service, any time is a good time to send money overseas. Visit any of our Al Ansari Exchange branches or download the Al Ansari Exchange mobile app on the App Store or Google Play to start safely and conveniently sending money abroad.