How to Send Money to Family Overseas for the First Time
If you’re sending money to family abroad for the first time, there are a number of things you should know.
- Banks typically charge a margin of about 5% on the daily exchange rate in addition to hefty international money transfer fees. That means that on a $10,000 transfer you could be paying as much as $500 to your bank plus additional fees when you send money to family overseas.
- You can save a lot of money by using OFX, because we specialize in international money transfers, our margins are less than what the banks charge.
- Make sure you choose a provider who is licensed and regulated in all jurisdictions where they operate.
- If you’re expecting to make additional future payments to family abroad, it is more convenient to use an online money transfer provider who can process your transfer 24/7, on nights, weekends, and holidays.
- If you’re worried about sudden currency fluctuations, you can use our suite of risk management tools to lock in an exchange rate for up to 12 months or to set a target exchange rate.
- You should never transfer money to someone who first contacted you via the internet. Scammers prefer to request money via money transfer because the money moves so quickly. OFX can offer same day or one business day delivery times to many countries, so before you send money to a love interest you met online, check out our security page to read up on the red-flags for common scams.
- If you’re sending a lot of money to family abroad as a gift, you or your recipient may be required to pay gift tax. The sections below will give you some basic info about potential tax implications of sending large sums overseas. (Refer to your local tax office website for more info).