A Complete Guide to Sending Money to India
Modern technology has made it very easy to send money overseas as we have a vast array of options to explore. One can read various guides to sending money overseas to get a clearer idea. There are many companies, firms, and foreign exchange agencies along with business firms that follow these guides to sending money overseas and compete in the market and provide the best and most efficient of services when it comes to sending money overseas.
The first question you need to ask yourself when you read a guide to sending money overseas is how you want to send your money. Now, this requires some thought as it depends on a lot of factors like the amount you are sending, the cost of sending it, how many times are you planning to send it and the applicable taxes that go with the procedures. It also depends on how fast you want the other person to receive it and the mode of transfer (which could be either cash transfer or electronic transfer)
Now, let us look at some of the options presented to us in this guide to sending money overseas.
There are many options to send money in this guide. However, only three are used all over the world because of their efficiency and reliability. They can be through banking or building societies, which this guide to sending money overseas highly recommends, although, this guide to sending money overseas also encourages us to send money through foreign exchange (FX) brokers or high-end firms like the Instarem, Western Union or Forex.
Coming in next in this guide to transfer money overseas are money transfer firms. Although incredibly fast, they are way more expensive, especially if the amount you are sending is a small one, than your conventional banks.
Now, let us talk about the costs and exchange rates.
Exchange rates are affected by many economic factors. The rates especially see a significant change for exchange between countries with a higher currency, say Australia, and countries with a lower currency, say India. For transactions in such cases, a person in Australia would prefer lower FX rates to transfer money to India. For example, this website provides a fast and cost-effective money transfer procedure from Australia to India.
The second factor is interest rates. Our guide to sending money overseas stresses on knowing the importance of this. Higher interest rates are crucial to strengthen a currency and to attract foreign business. The higher the interest rate a bank offers for a particular amount deposited by a common man, the more likely that person is to deposit more money. This increases the amount of the country’s cash reserve which in turn leads to healthy business opportunities and opens up a variety of trading options. Considering the case mentioned above, Australia’s high interest rates have the potential to increase its currency (AUD). This tends to increase the demand for foreign exchange or money transfer to India.
Exchange rates can fluctuate very fast. It can dramatically rise or fall within a week. Like last year, the rate for the sterling-euro was 1.234 on January the 3rd, but it fell to 1.167 by January 31. The difference does not seem big when you compare such small amounts but when you compare larger amounts like if you got 123.99 euros for 100 pounds at the start of the month, at the end of it, it is just 116.72 euros. That is an immense difference. However, by the end of the year, it climbed back to a stable 120.20 euros.
The last thing this guide to sending money overseas asks you to keep in mind is that you need to confirm all the details before finally going ahead with the money transfer. You need to have a written confirmation of the assignment. You can get this by applying for it at your bank although it is delivered to your banking address. You should also get in touch with your FX broker or the bank or firm which you have used to complete the transaction. Also, you need to hold on to all the paperwork and receipts and transaction ID numbers in case if anything does go wrong.