Wire transfer is one of the quickest ways to send and receive money within the U.S. and all over the world. Many people turn to money transmitters like Western Union and MoneyGram to wire transfer money but depending on the type of transaction, banks may be able to provide the same service at a better deal.
Wire transfer fees at money transmitters may vary depending on several factors including the total amount transferred, method of payment, and delivery time. On the other hand, banks offer a flat fee for wire transfers services. Therefore, bank wire transfers can be especially advantageous and money saving for transfer of large sum of money. For small transfers, money transmitters may be the cheaper option.
Here’s a chart of the wire transfer fees charged by the 10 biggest U.S. banks:
|Banks||Domestic - Incoming||Domestic - Outgoing||Foreign - Incoming||Foreign - Outgoing|
|Bank of America||$15||$25||$16||$45|
Incoming wire transfers tend to be cheaper than outgoing ones, and the fee for domestic wire transfers are significantly lower than that of international transfers. On average, wire transfer fees have increased slightly at the top 10 U.S. banks since the last year.
Currently at the 10 largest banks, the average fee for incoming domestic wire was increased from $14.70 to $15, while outgoing domestic wire transfers stayed at $26.40 — unchanged from last year.
A couple of banks increased the amount they are charging for outgoing foreign wire transfers — bringing last year’s average of $45.50 up to $47.50. The average costs of incoming foreign wire transfers stayed constant at $17.50 per transfer.
Foreign Wire Transfers
Determining the cheaper way to wire transfer money domestically between banks and money transmitters is pretty straightforward. However, it is a bit more complicated when it comes to foreign wire transfers — despite implementing rules to make the process more transparent. Unlike banks, money transmitters may charge different fees for different countries. For this reason, one should first compare all the different options for sending money abroad.
It’s also important to note that banks and money transmitters will convert to foreign currency at a lower exchange rate, resulting in loss of money for the recipient in the process.