Best Way to Deposit Money into a Foreign Bank Account
Here is a quick post for everyone who has had to wrack their brains trying to deposit money into a foreign bank account:
A few months ago I needed to get about 700 euro deposited into the account of a Spanish university. Now, since I live in China, directly going to my local bank and wiring the money from here can be quite a hassle, so I decided to use an on-line service that would work with my U.S. Bank account.
First, I did a little Internet searching, and found that there are a number of companies available, but not many would directly put money into a foreign bank account, or if they did, the minimums where around 3,000 dollars, much more than I needed to send.
I tried Xoom money transfer, but it turned out to be an enormous waste of time. After various transfer attempts, and hours upon hours of trying to talk to people on the phone, I eventually learned that there was no way Xoom would put the money into the bank account of an institution. I wasted a whole day to learn this simple fact.
After more searching, and nearly giving up, I finally bumped into a site called Xe.com
Now Xe.com is not really a money transfer site, but is a currency trading site. Nevertheless, through it I was able to do what I really needed to do, which was getting money into someone else’s account.
So, I opened a currency trading account with XE (no fees, too!) and then followed the next easy steps:
- Made sure to verify my account with personal identifiable information requested by XE
- Purchased 642 Euros
- Transferred the Euros to the university bank account in Spain.
- Since I went cheap, I had to wait
- Voila! Received confirmation from my recipient
I was kicking myself for days for not having found such a simple and elegant solution before. I mean, seriously, I had been on the net for literally 11 hours straight on a Saturday, trying to find a way to cheaply, and easily transfer money from one account in the United States to one overseas. The only difference with XE is that you are “buying” foreign currency and having it deposited overseas, but the final result is exactly the same.
As far as costs, it is included in the currency trade itself. You don’t pay the mid-market rate, but the “sell” rate that XE has at the moment. Since XE is not specialized into money transfers, but is actually a money trading site, the rate is highly competitive.
Getting the money into the foreign account is completely free if time is not an issue, and if you need it faster you can pay a little extra, depending on how fast it needs to get there.
Hopefully the next time you need to transfer money in a foreign account from the U.S. You can avoid hours of frustration (like me) and save time and money at the same time!
If you know a similar service, or a better one, please share it with us!
Disclaimer: SROOSTER.com has not and will not receive any financial compensation for this article, and has no relationship with XE, other than having an ordinary user account, that was used to transfer money as explained in the article above.