Key takeaways
- Timing your transfers can significantly impact exchange rates and fees.
- Understanding economic factors helps maximize transfer value.
- Mid-week transfers often offer better rates and lower fees.
- Comparing providers and methods can reduce transfer costs.
Did you know that the timing of your transfers can significantly impact how much the recipient receives? By choosing the right moment to transfer funds, you can reduce fees and take advantage of better exchange rates.
We’ll walk you through the best times of year, month, day and even time of day to send money internationally — all to make the most out of your hard-earned funds.
The basics of currency exchange and transaction fees
When sending money abroad, you’ll typically encounter two types of costs: exchange rates and transaction fees. While you can’t always avoid currency conversion costs, choosing the right financial institution might help you minimize or eliminate additional charges.
Here’s what you need to know about transfer costs:
- Flat fees: Some providers charge fixed amounts per transaction. These fees impact smaller transfers more significantly. Consider sending larger amounts less frequently to reduce the impact of flat fees on your transfers.
- Percentage fees: Many exchange services take a percentage of the total amount you’re converting. This can add up, especially with larger transfers, so it’s a good idea to compare these rates before deciding where to send your money.
- ATM withdrawal fees: Let’s say you’re physically with your family abroad and choose to give them cash. In that case, withdrawing cash abroad often comes with fees from both your home bank and the foreign bank. These ATM fees typically range from 1 to 3 percent of the transaction. Some banks might refund these fees or partner with international banks to offer fee-free withdrawals. Check your bank’s policies before traveling to understand potential costs.
- Foreign transaction fees: Using your credit or debit cards to transfer funds can also cost you higher foreign transaction fees — often ranging from 1 to 3 percent for each transaction. To save money, look for multi-currency or travel-focused credit cards that waive these foreign transaction fees. Always review your card’s terms before to avoid unexpected charges. If your card does have these fees, try to limit its use and opt for cash or preauthorized debit transactions.
Factors to consider when timing your money transfer
Several key elements influence the best time to send money abroad. Understanding these factors helps you make informed decisions about your transfers.
1. Exchange rate fluctuations
Exchange rates change constantly, influenced by economic news and political events. Simply put, a good exchange rate means your dollars stretch further, giving your recipient more local currency. On the flip side, a bad rate can shrink the amount they get. Your goal should be to get the best value for your money, and you can do that by keeping an eye on these fluctuations.
Case in point: The U.S. dollar index has seen significant ups and downs between 1973 and 2024. This means if you transfer U.S. dollars when their value is highest, your loved ones get more money, giving you (and them) more bang for the buck.
So, when sending money abroad, consider the following:
- Exchange rates can shift with the seasons. For example, some currencies might strengthen during certain agricultural seasons or weaken at other times.
- Keep an eye on things like inflation rates, interest rates and GDP growth. These can all influence exchange rates.
- Don’t overlook political events. Elections, policy changes and geopolitical tensions can cause exchange rates to swing. Try to stay informed about these situations so you don’t end up transferring funds during a volatile time (and losing money in the process).
2. Transfer costs
Money transfer services structure their fees differently — some have flat fees, while others take a percentage of the transfer amount. During high-volume periods like holidays, many providers increase their fees. Ideally, you should look for zero-commission or “no fees” providers so you’re not paying more money than change rates cost you.
If that’s not possible, here’s what you should do to keep those fees in check:
- Understand how different providers charge fees, whether a flat fee or a percentage of the transfer amount. For example, in the U.K., banks can be pretty expensive when it comes to transfer fees.
- Choose your transfer method wisely. The way you send money (bank transfer, online service, money transfer agent) can affect costs. Some methods might be cheaper but slower, while others offer speed at a higher price.
- Look for promotions. Sometimes, transfer services run promotions with lower fees or better exchange rates during specific times of the year.
Keep in mind that the receiver’s financial institution might also charge additional fees.
3. Economic and political stability
The economic and political conditions in both sending and receiving countries affect transfer value. During periods of economic uncertainty (like inflation) or political unrest, exchange rates become unpredictable and fees often increase.
For example, countries experiencing significant economic challenges may see dramatic currency fluctuations, making it crucial to time transfers carefully. Stable conditions in both countries typically result in better rates and lower fees.
Best days and times to send money abroad
The best time to send money internationally is usually mid-month on weekdays, especially from Monday to Wednesday. Why? Mid-month transfers help you avoid the rush during the last five days and the first ten days of each month when banks and transfer services are busiest. This means you could benefit from lower fees and faster processing times.
Also, when it comes to timing, try to make your transfer during regular banking hours in both your country and your family’s country to ensure everything goes smoothly. Steer clear of weekends and holidays, as these can cause delays and might not offer the best exchange rates.
How to maximize savings on international money transfers
Looking to save even more when sending money abroad? Here are some effective strategies to help you get the most out of your transfers:
- Set up recurring transfers to take advantage of favorable exchange rates over time. By spreading out your transfers, you can average out the exchange rates, reducing the impact of short-term fluctuations.
- Avoid last-minute transfers that might come with higher fees or unfavorable rates due to rushed processing.
- Research providers before you choose to use their services, whether it’s a bank or fintech institution, because not all money transfer services are created equal. That’s why you should compare fees, exchange rates, transfer speeds and customer reviews from different providers to find the best fit.
- Some transfer services offer the option to lock in exchange rates for a set period. This can protect you from unfavorable rate changes between the time you initiate and complete your transfer.
- Create a multi-currency account (like with Wise) to hold and manage different currencies within a single account. This way, you can transfer money when exchange rates are most favorable without dealing with frequent conversions.
The bottom line
Strategic timing of international money transfers can significantly impact how much money your recipient receives. By considering exchange rate fluctuations, transfer fees and economic stability, you can maximize the value of your transfers.
Remember to compare providers, watch for favorable rates and plan transfers during optimal times. While you can’t control all factors affecting international transfers, careful timing and preparation help ensure you get the best possible value.
Frequently asked questions
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