There are millions of foreign nationals living and working in the UAE today. Many of them have come in search of “greener pastures” — including high-paying jobs and greater career opportunities — that would eventually enable them to better support their families back home.
With such a huge number of foreign workers, it is not surprising that there are numerous companies offering money transfer services from the UAE to other countries. But which one should you choose? And is it possible to save money even when sending remittances? Indeed, it is! Keep on reading for some great tips on money transfer services!
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Guide to Saving Money When Sending Remittances
Here are several important things to consider with regard to sending your remittances from the UAE:
1. Choose a good exchange rate.
Obviously, the exchange rate is a primary factor in choosing a money transfer service, as you would want to obtain the highest possible value from the exchange. That being said, keep in mind that the foreign exchange market is constantly in flux, and the rate changes every day.
What you can do is to keep an eye on the exchange rates featured in a broker’s (or several brokers’) website and watch out for a good exchange rate, before sending your money.
2. Know the best time to send money.
Whenever possible, try to send your remittances on a weekday (i.e. Monday to Friday) instead of the weekend. This is because “live exchange rates” are active during weekdays, whereas weekends feature an “approximate rate,” which tend to be higher.
3. Use an exchange fee calculator.
There are many companies and websites that have an “exchange fee calculator” online. Aside from factoring in the exchange rate, these calculators subtract applicable fees and charges, thus allowing you to have an idea of how much money will be received by your loved ones.
4. Look beyond the exchange rate.
Earlier, we talked about the exchange rate as a primary factor in choosing money transfer services, but there are other things to consider, such as transfer fees and charges.
Depending on the service provider, the transfer fee can be a fixed amount or a certain percentage of the money to be remitted. So aside from looking at exchange rates, be sure to compare transfer fees as well before choosing a service provider.
5. Watch out for “mark ups.”
When banks and money transfer services trade among themselves, they typically follow the inter-bank rate, which is also called the mid-market rate. To make a profit, they then “mark up” this rate when customers — such as yourself — use their services.
Hence, it only makes sense for you to know the inter-bank rate or mid-market rate, which is usually published on Yahoo Finance, Google Finance, and other channels. This will help you determine how much “mark up” is being applied by service providers, so you can compare them and choose the best one!
6. Be aware of any “back end” fees.
Just as there are transfer fees when you send money from the UAE, there could also be a “back end” fee once it arrives in your home country. This is an additional amount charged when the money is collected by your recipient. It is usually a fraction of the transfer fee; still, it is best to take note of the amount charged, so you can compare it with other service providers.
7. Read the fine print.
You never know when a transaction could encounter problems or issues, so it’s always a good idea to read the fine print. This way, you will know what to do in case you might need to make a refund or pursue other options with regard to your transaction.
By keeping these tips in mind, you can obtain the best value for money when it comes to sending remittances, and you can also be assured that your hard-earned money reaches your loves ones back home!
READ NEXT: List of Money Exchange Centers in UAE
