If it's time to make a bank transfer and you're considering paying a $30 fee because you don't know other low-cost ways to send money, allow us five minutes of your time to help you. Whether you're supporting family abroad, paying a friend back, or making a business transaction, finding the cheapest way to send money is a valuable real-life financial hack.
With so many options available, it's important to weigh the costs, speed, and convenience of each method. We’ll outline the cheapest ways to send money—internationally and domestically—so you can make the best choice for your needs.
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What to consider when deciding between ways to send money
Every penny saved is a penny you can put towards something more enjoyable! Here’s what you need to think about to ensure you're getting the most bang for your buck:
Transfer fees
Don’t just look at the obvious fees—dig a little deeper. Some methods are sneaky, showing you one fee upfront but surprising you with hidden charges later, such as service fees, processing fees, or even currency conversion fees. Others might be completely free for the sender but tack on costs for the recipient. It’s all about balance, so make sure to read the fine print and understand all potential costs before choosing a method.
Exchange rates
If your money needs to cross borders, pay close attention to the exchange rate. Even a small difference can add up, especially if you’re sending a larger amount. Sometimes, a method with low fees might offer poor exchange rates, which means you’re losing money. It pays to consider the overall cost of your transaction.
Transfer speed
Are you in a rush, or can the recipient wait a few days? Faster transfers might mean higher fees, so if time isn’t of the essence, you could save a few bucks by choosing a slower option.
Recipient’s needs
Think about how the recipient will receive the money. Do they need cold, hard cash in hand, or are they OK with a digital transfer? Some methods work better for specific needs, and choosing the wrong one could cost more.
Security
Last but definitely not least, you’ll want to guarantee the security of your hard-earned cash. Opt for methods that are reputable and have strong security measures in place, especially for international transfers. Consider if it’s worth paying a little extra for peace of mind, assuring that your money is safe and sound.
Cheapest ways to send money: know your options
By now, you’re probably wondering which online service is going to give you the best deal. After all, no one wants to pay more than they have to.
Take your time to compare the different online platforms available. Read the fine print, check user reviews, and maybe even test out a small transfer to see how it goes. Once you find the right service, you can feel confident that you’re sending money in the most cost-effective way possible.
Here’s a breakdown of some popular and affordable ways to spend money:
1. Bank transfers
Direct bank-to-bank transfers may be the first option you think of, and you’re right: bank transfers and peer-to-peer payment apps often offer the lowest or no fees for domestic transfers.
However, this method fluctuates a lot in fees, even if you're transferring domestically. Some banks offer low-cost or even free transfers within the same country, while others may charge you around $30 in fees, which considerably elevates the cost of your transfer.
Before opening your bank account, read the fine print to understand how much that financial institution charges per transfer to make an informed decision. Also, check with your current bank how much they charge for transfers—in most cases, you can easily find that information online.
2. Online money transfer services, payment apps, and digital wallets
Online money transfer services have become increasingly popular in the last decade because they offer cheaper ways to send money, often with zero fees both to open an account and transfer money. While typically free for domestic transfers, they might charge a fee for credit card use or expedited transfers.
These apps allow you to send money directly to another person using just their phone number or email address. The challenge with this option is that, for some of these services, the recipient also needs to have an account on the same platform. If that's the case, consider it the cheapest way to send money. If not, you might have to check the other options available.
3. Money transfer operators
If the recipient needs cash quickly, money transfer operators are companies that offer cash pickup services. This can be a convenient option, particularly for certain countries and for folks who prefer cash. The cost often depends on how quickly you need the money to arrive and the destination.
What is the cheapest way to send money internationally?
The tricky thing about international transfers is that you’re dealing with different currencies and often higher stakes. Unlike domestic transfers where the options are pretty straightforward, sending money across borders introduces a whole new set of challenges—exchange rates, different banking systems, and varying regulations.
But don’t worry, it’s not as complicated as it sounds. Let's dig deeper.
Compare cheap ways to send money overseas
When sending money internationally, the cheapest methods typically revolve around online transfer services designed for international use. These services often offer better exchange rates and lower fees than traditional banks, making them a go-to choice for savvy senders. They allow you to send money directly to a recipient’s bank account or even for cash pickup.
However, if you’re someone who prefers sticking with your bank, there are options there, too. Some banks offer competitive exchange rates and low fees for international transfers, especially if you’ve been a loyal customer. But banks can sometimes be the more expensive route, so always check the rates and fees before hitting that “send” button.
Bonus tip: Mobile payment services can also be a lifesaver when it comes to international transfers. These platforms are often straightforward, allowing you to send money using just your smartphone. If both you and the recipient are comfortable with digital transactions, this can be a low-cost, convenient option.
FAQs about ways to send money
Which money transfer has the lowest fees?
For domestic transfers, bank transfers and peer-to-peer payment apps often offer the lowest or no fees. For international transfers, dedicated online money transfer services usually have the lowest fees.
What is the cheapest service to send money?
The cheapest service varies by destination and amount. Generally, online money transfer services and digital wallets offer the lowest fees, especially for small to moderate amounts.
How can I send money without fees?
Using peer-to-peer payment apps or online money transfer services that offer promotions or fee-free transfers can help you avoid fees, particularly for domestic transactions.
Which online money transfer is cheapest?
Online money transfer platforms dedicated to sending funds internationally often provide the most competitive rates and fees.
How can I avoid money transfer fees?
To avoid fees, use services that offer free transfers between accounts within the same platform or during promotional periods.