05 Jul 2022
Remittances to developing countries are worth more than $500 billion, or three times the level of aid, and they're overgrowing since the turn of the century. It isn't easy to imagine a more efficient targeting system than people sending money home to their own families. The facts support this; remittances are associated with improved economic, health, and educational outcomes. Remittances are undoubtedly beneficial for the recipients; however, the remitters remain worried about the growing charges they have to pay for each cross-border transfer.
Every day, millions of families worldwide go to post offices, banks, and international money transfer companies to pick up money sent to them by relatives working abroad. These family remittances frequently allow them to send their children to school, improve their households, start small businesses, etc. Let’s find out how can expatriates reduce money transfer costs and save money.
There are a few tips to cut the cost of Family Remittance;
First and foremost, sending money home from abroad boosts competition in the global remittance market and empowers migrants by assisting them in making informed decisions about remittance service providers. You can cut family remittance costs if you choose the best money transfer service with relatively low fees. It is likely the most effective way to reduce costs and save enough money whenever you need to send funds to your family back home.
International money transfer regulations are complex in some areas due to understandable concerns about illegal money flows from criminals and terrorists. But there are things you can do while keeping those safeguards in place.
The growth of digital money services has enabled cost savings by increasing competition, shortening transfer times, and improving convenience. You can instantly transfer funds to your family with low fees using a mobile app. The market is flooded with several digital money transfer applications where you can choose the service that suits you best. Remember that you’ll need to select a mobile app that a trusted and legally regulated provider owns. Using an unauthorised service can lead to data loss, stolen privacy, and losing money.
Knowing how the forex market works is one of the most effective strategies to save money on your international fund’s transfer. If you can constantly check the updated exchange rates, you will most likely save enough by selecting the right time when the rates are at their peak. The best exchange rates help you make more after converting money from an international currency to a local one. The companies that offer the highest exchange rates often allow funds transfers with low fees to stand out in the competition. One reliable and trusted company is ACE Money Transfer, that’s been serving millions of expatriates worldwide to send money home with the best rates and the lowest fees.
International money transfer companies keep providing their customers with seasonal offers and marketing promotions. If you keep an eye on such promotions, you have multiple chances of saving the cost of your money transfers and winning many prizes and rewards where cash bonuses are often included.
The best way to save transfer fees when sending money to your family is to make transactions on special occasions and events. Most money transfer service providers offer the lowest or even zero transfer costs on special celebrations. Though urgencies often demand you to send money home instantly, if you can align your money transfer schedule with special events, you can significantly save money.
The increasing adoption of digital technologies by migrant workers and their families throughout 2020 and 2021 was one of the biggest drivers of formal remittances. Remittance flows have been boosted by online and mobile technologies both during and after this challenging time. With global remittances reaching US$ 12.7 billion in 2020, mobile remittances alone saw a 65 per cent rise.
Lockdowns and social distance laws that encouraged the phasing out of unofficial routes and the usage of cash for senders and recipients accelerated this transition. Digitalisation has boosted the use of mobile money and made cash transfers less expensive than before, improving the financial inclusion of immigrants and their families.
The IDFR and the UN express strong determination and resilience of the human spirit, as demonstrated by migrant workers. Furthermore, the UN encourages governments, the private sector, development organisations, and civil society to promote digital and financial remittance solutions like international money transfer apps that promote greater social and economic resilience and inclusion.
The estimated hundreds of billions of dollars in remittances each year assist families and help develop and eliminate poverty across entire nations. The International Day of Family Remittances was declared on June 16 by the United Nations General Assembly in recognition of its significance. Remittances to low- and middle-income nations totalled $540 billion in 2020, barely 1.6% less than in 2019, according to the most recent World Bank data.
In times of economic hardship or natural disasters, migrants tend to increase remittance transfers to help struggling family members back home. This trend defies earlier pessimistic estimates and is consistent with historical data.
Every year on June 16, people worldwide observe the International Day of Family Remittances. The UN’s General Assembly adopted this day, and it sponsors the event every year. This day is celebrated to honour the contributions made by migrants to the welfare of their relatives back home. It is also intended to reflect the future-oriented optimism they have cultivated.
Remittance families are typically resourceful and robust in the form of adverse situations and changing conditions. Everyone can contribute to lowering the cost of family remittances. Selecting the best international money transfer services can help you save money on family remittances.
Takeaways
The excellent news is that every expat can opt for various tips mentioned above to cut the cost of family remittances they send to their families monthly. If everyone works together on this issue, the super-tax on remittances can be repealed, improving the lives of millions of families worldwide. ACE Money Transfer is excelling by ensuring the lowest transfer fees, the highest exchange rates, and the most secure money transfers worldwide.
