There are a lot of available options for transferring funds, whether it’s for business or personal purposes. But when cost is the primary concern, consider some of these low-cost options:
Your bank can assist you with various types of money transfers. If you’re simply transferring money from one account to another at the same bank, this is usually a free service, and often a quick task that can be done online. If you want to transfer funds to an account at another bank, you will need both the checking and routing number. International money transfers may be done at a low-cost, but are normally not free of charge. They also require a lot more information.
Money orders and cashier’s checks
These can be good options in specific scenarios—for example, when you’re moving into a new apartment or office, and you need to provide a security deposit or pay move-in fees. They are made out to a specific recipient, and unlike a check, they don’t take time to clear. You can buy cashier’s checks at a lot of different locations, such as the post office, which also makes it a convenient option for money transfers.
PayPal is a fast, effective, and low-cost way to transfer funds online and has become one of the most popular ways to do so, especially when dealing with transactions over the Internet. When sending money from a bank account, you normally won’t have to pay anything—it’s usually only the receiver that may incur a fee.
Prepaid debit cards
Prepaid debit cards work almost the same way credit cards do, except you load cash onto them ahead of time, and this can be a great way to transfer money. Some cards are reloadable, which means you can continuously add more money to them as needed, and use the card repeatedly. Depending on the card, you may be able to use cash, a credit card, or a debit card to transfer money onto the card, and the funds are often available to the cardholder almost instantly. Prepaid cards can usually be used to make purchases just about anywhere else credit cards are accepted, and they can also be used to withdraw cash at ATMs.
A simple, straightforward way to transfer money—although a bit slower than other methods—is through a personal check.
Western Union and MoneyGram
With Western Union and MoneyGram, you can send money to someone in another city, state, or even another country. A flat rate is charged for the transaction, which is based on how fast you need the money to transfer, the amount you’re sending, and the location you’re sending it to.
If you’re sending money to a different country, you’ll also have to consider the exchange rate. When you use these services, you won’t often receive the best exchange rate, so in a way it’s like paying a hidden fee. But one of the main benefits of transferring funds this way is that it’s very convenient for a multitude of situations.
Some banks offer online money transfer services to their customers; the process is similar to when you pay a bill online. When transferring funds this way, you will need the checking account and routing numbers, plus a SWIFT or IBAN number if it’s an international money transfer. This can be especially convenient if you routinely send money to the same recipient, as you can set up recurring payments. Usually, e-transfers come at a lower cost than transfers made through a bank teller.
Do you need extra cash to take care of bills and expenses? We may be able to help get you the money you need if you’re receiving long-term payments from an annuity or structured settlement. Contact Peachtree Financial Solutions today to find out how you can sell some or all of your periodic payments and turn them into a lump sum of cash now.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.