Wire Transfer Fees: Everything You Need to Know
If you've ever been to a bank, you’ve surely faced the issue of making wire transfers as well as definite fees that will be charged for this service. And, just like everybody else, you sure want to find the bank with the best conditions for domestic or international wire transfers. In this blog post we will highlight the main peculiarities of what a bank wire transfer is, how much it costs, and the smartest ways of reducing fees for wire transfers. Eager to get some insights into the banking system? Read on!
What Is the Cost of Wire Transfer Fees, and What Impacts Them?
Wire transfers are offered by banks when a person needs to send money inside the country or internationally. It’s an electronic method of moving money for whatever financial goals you may have. Yet, you will have to pay the bank wire transfer fees. The exact sum varies from one bank to another and depends on the methods you use and the amount of funds you want to transfer.
How much does it cost to wire money? On average, the fees for incoming domestic operations vary from $0 to $50, and you will have to pay about $30-50 for outgoing operations. When it comes to international transfer fees, you may have to pay around $30 for incoming transfers and about $50 for outgoing ones.
Note: Those are average numbers and can significantly differ from one bank to another or even inside one institution. A lot depends on the following factors:
- The wire transfer service fee of your bank
- Your bank account
- Exchange rate markup
- Third-party costs
- How much money you intend to transfer
You need to consider all these factors to be sure you do not overpay, or to find a cheaper alternative option for all your bank wire transfers.
Here are also a couple of examples of the money transfer fees charged by banks:
Bank | Incoming international | Outgoing international | Incoming domestic | Outgoing domestic |
Bank of America | Varies by account type | No fee for outgoing wires in foreign currency $45 for outgoing wires in dollars | Varies by account type | $30 |
Wells Fargo | $16 | Online outgoing payments in foreign currency — no fee $35 to $45 for all other payments | $15 | $25 — $30 |
As you can see, both of these options have a similar fee structure for domestic and international payments. Yet, Wells Fargo will be the better choice for international transactions, thanks to their ExpressSend option for faster payments with lower fees. Bank of America, on the other hand, will better suit those who don’t like to deal with paperwork.
Yet, both remain pretty expensive for an average user, so it’s always good advice to analyze different banks yourself to find the best fit.
Tips to Reduce Wire Transfer Fees
No one wants to pay a domestic or international wire transfer fee. Yet, this is a fair compensation for the bank for providing its services. In this case, you should instead focus on reducing the possible expenses. Here are a few smart tips about how to decrease the wire transfer cost:
- Opt for peer-to-peer solutions. P2P is a very popular method of sending money that is actively used by millions of people all around the world. The main benefits of the system are high processing speed and lower transaction fees. At times, there are no fees charged at all. The most popular options for 2P2 are Venmo, Cash App, and Zelle.
- Check all available options. You should understand that your bank is not the only provider of transfer services. There are hundreds of other banks out there, each offering unique benefits for their clients. Some banks offer free discounts, waive some wire fees, or provide similar cost-cutting options. So, instead of sticking to the popular financial institutions, do your research and choose what is best for you.
Final Thoughts
It’s crucial to know about bank transfer fees and factors that impact money transfer cost. Be sure to check the options of your bank account and what other banks in your country have to offer. Perhaps you'll find a better option with lower fees or a special service with no fees at all. Always be attentive and check the benefits not to miss on new opportunities!
FAQ
What are the advantages and disadvantages of bank transfers?
The main advantage of the existing transfer system is the possibility of getting your money instantly to any corner of the globe. The main disadvantage is the need to pay for any transfer you complete, at least in most cases. At times, fees can get pretty expensive, and people have to look for other options.
How can I find out the bank transfer fees of different banks and services?
If you need to complete a bank transfer and find out how much must be paid for either domestic or international wire transfer fees, you have several options. First, you can try to find this information yourself using a bank website or app. Alternatively, you can just contact your bank’s customer support so they can provide you with all the information you need.
How can I cut the domestic wire transfer fee cost?
You can easily reduce the cost of the domestic wire transfer fees if you use peer-to-peer transactions, sticking to local currency. For example, you may use Zelle or Venmo to reduce costs significantly. Yet, it’s better to research this matter and compare all the services to define the most suitable option for you.
