Things To Consider When Transferring Money To Canada

By Author: Shashank Bhaskar
Total Articles: 63
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With people moving and settling down overseas to study, there has been a steady rise in remittances worldwide. The last few years have also seen several individuals moving abroad for higher education. Similarly, Canada sees large groups of Indian students going to the country to continue their higher education. Some may even settle down in the country.
As a result, their loved ones might need to transfer money from India to Canada to cover their educational and other expenses.
Ways to send money abroad
Today, you can choose some of the following methods to transfer money abroad:

Online money transfer services

This method allows you to transfer funds instantly. It is a web-based procedure and does not require any paperwork. In fact, you can easily carry out a money transfer from anywhere.

International Money Orders

International Money Orders are typically used by people unaware of the latest technology. These are issued by post offices or banks.

Wire ...
... transfers

A wire transfer is usually considered a convenient and affordable method of sending money abroad. You can use this method to transfer money to Canada in approximately 24 to 48 hours. This payment is facilitated through the SWIFT network, a messaging protocol that enables fund transfers across the world.
Wire transfers are usually considered secure and are one of the most used methods of sending remittances. However, they may be expensive as some host countries charge high fees for this service.

Physical Demand Drafts

You must make a prepaid payment when using a Demand Draft to send money abroad. The DD is issued in the beneficiary country’s currency. Banks usually charge a fee for it. Despite its convenience, this method might be time-consuming and difficult to revoke.
Factors to consider
You may choose an International Money Transfer or make a payment request on your bank’s Internet Banking platform. Alternatively, you might select another method when sending money to Canada. However, ensure you consider the following factors before making the transfer:

Exchange rate

The foreign exchange rate is an essential factor when sending money overseas. Hence, you must know the current rate and compare those provided by various banks and financial institutions to take advantage of the best rate.
Some banks may allow you to block the exchange rate on your transfer. Hence, you can book your payment request at the displayed rate. This way, your bank will debit and process the remittance at the same rate.

Transparency

Opt for a service provider that processes the remittances via authorised channels. They must also offer transparent rates.

Fees

Service providers usually charge a fee when you want to send money internationally. This charge usually varies across payment methods. While there may be no remittance charges, the intermediary bank might charge a fee. You must also pay a foreign currency conversion charge. Apart from this, you have to pay the applicable GST charges.