Are you aware of these factors before opting for a money transfer service?

There are plenty of factors you will need to consider when it comes to making a money transfer. Some of the factors that are taken into consideration include the amount that needs to be transferred, the current conversion rate and the speed of transfer amongst many others. However, the one factor that needs to be taken into consideration before all others, is the money transfer service itself. Here are some of the factors you need to be aware of when it comes to selecting a money transfer service:

Exchange rate

Amongst all the money transfer services available, this is one of the most important factors to consider. The foreign market, in reality, is never still. Wild fluctuations in the exchange rates can occur within a short duration. To those who are making a transfer, it is imperative that the best exchange rate is selected in order to secure the best value. A favourable exchange rate, especially with a large sum of funds will save you a significant sum of funds.

Fees and charges
This is one of the imperative factors you will need to consider when it comes to the money transfer services.In addition, the exchange rate, additional fees, and charges are important when considering the overall cost factor of the money transfer. You will need to keep in mind the transfer charges and overseas bank receiving fees. While the value of these fees can differ within each institute, you will need to keep track of it, when making any urgent or non – urgent payments as they can impact the overall amount of the transfer.

Reputation of transfer provider
Several money transfer services have become a popular option for traditional banking services when it comes to making any overseas payments. Before making any currency transactions, it is paramount to ensure that the transfer money institute you are opting for, is authorized by the appropriate regulatory body to carry out the money transfer. These authorized institutes usually afford a higher protection, as they have to safeguard their client’s funds from other funds. The best way to check the reputation of a money transfer provider is by checking the balance sheet and the trading history of the company’s reliability.

Check for online services
Plenty of financial institutes offer the physical means to transfer funds from one location to another. That means you will need to approach the physical institute to make any transfer. However, most companies are now switching to online platforms, making these money transfer services viable and feasible for all individuals. You will only need to create an online account in order to make this transfer possible. Advantages of this online account includes, tracking of payment history and storage or subsequent transfers.

Remit to India: How to lessen your financial burden with these tips

Plenty of individuals who have settled or stayed abroad need to remit to India now and then. However, with plenty of options available in the market and each possessing different nuances, how do you choose the option that will suit you the best? Here are some tips that can help assist you:

Look for options that help share fixed fees during remittance

When you remit to India, certain banks or financial institutes offer you the option to choose who pays for the fixed fee cost of the remittance. In this case, either the sender or the receiver can pay for the cost, or share it. With each transfer of funds you make, different fees or costings will be involved. Depending on who’s opting to pay, the sender or the receiver will be responsible for their bank and the intermediate bank’s fees, in addition to the transfer amount and exchange rate.

Get the best rates between Mondays to Fridays

While the financial market may be unpredictable, certain trends can be easily perceived. For example, you will get the best of live exchange rates, if you opt to remit to India, between Monday and Friday. During this time, the international markets are open. On the weekends and public holidays, international markets are less functional, if not closed. At this time, the exchange rates that are quoted are either not live or a close estimate. Thus, there is a high chance that the remittance will be higher than usual.

Opt for the same bank or financial institute that has a branch abroad

When transferring funds from any bank around the world to India, three banks will be involved, namely, your bank, the intermediate bank and the receiver’s bank. Depending on your requirements and the requirements of the receiver, your remittance will become faster, easier and cheaper, if you transfer funds internationally and locally, within the same bank or financial institute. In this way, you also remove the necessity of an intermediate bank and the fees involved. 

Transfer on Mondays or Tuesdays for a quick turnaround time
Plenty of international countries have different conditioning when it comes to remitting to any other destination, such as India. For example, UAE banks are closed on Fridays, whereas most other banks are closed on Saturday’s and Sunday’s. Keeping these conditions in mind, it is best to transfer funds on a Monday or Tuesday from your bank or financial account.  As the funds will reach within the week itself, any issue or problem can be clarified within that week itself.

Best time to transfer funds is before 10 am

During the week, most of the international currencies transfer have a cut of time between 10 am and 12 pm GST. In this case, a two-hour margin is advised for transfer processing. This is to certify that there is no missing information required or inconsistencies to be fixed before the transfer takes place. Therefore, if you make your remittance before this time, there is a better chance that it will be processed on the same day.

How to send money to India in 3 easy steps

The number of individuals who have traveled abroad and settled for reasons such as better extended studying, earnings or migration purposes is increasing every year. However, while these individuals may travel abroad, they still keep in touch and provide for their families at home. Most individuals take this step, by sending money back home, in order to reduce any possibility of financial burden or as security sake.

However, sending finances from one country to another takes considerable planning. As the sender will need to consider several factors when making a decision to send money to India, very often, each decision taken is a calculated one. If you are looking to transfer any funds to India, here are certain steps you can take:

Step 1: Look at all your viable options
 
Each individual will have different financial requirements as well as habits. Based on these factors, you can opt for a sending option that will suit your needs and requirements. Most of the sending options include:
• Bank or financial institutes
• high street transfer firms such as the Western Union
• Forex brokers
As a general rule, banks and financial institutes are the safest options, especially if you are considering regular payments. Alternatively, money transfer firms are often quick, especially if you need to send funds in an emergency. Forex brokers are the best choice for those who want to send large amount of funds, as they provide the best protection against fluctuating foreign conversion rates.

Step 2: Ensure that you are aware of the costing

When you send money to India, the overall amount you will spend will not only include the amount you need to send. You will also need to include additional costings, which include:
• What is being charged by the firm when transferring the money
• The charges the recipient may incur when converting the funds into the local or another foreign currency
• The current foreign exchange rates
How much will it cost, when transferring funds from abroad is obviously a key consideration. You will need to find out the total amount of foreign currency you will by after all the costs have been done.

Step 3: Confirm all details before making the transfer

Once you have settled on the best option, you will need to consider the transfer. At the same time, ensure that they will be able to manage the amount you need to transfer, within the time limit you want. The best way to ensure this, is by getting a written proof through the means of an acknowledgement receipt or email. Ensue that you keep all the paperwork and receipts as evidence in the event something goes wrong or you need to provide proof.

Online shopping: Be aware of online money transfers when you shop online

Online shopping has become one of the greatest conveniences in modern day e – commerce. All you need to do is log online, check out the available wares you require and make the purchase you want through your banking card or COD option. Then you only need to sit back and relax as the product is shipped to the destination you want.

However, not all shopping expenditures come as easy as the process mentioned above. At times, you may not get the product you have ordered. Other times, you may get a damaged product. At times, you may also make the purchase you want, but the online money transfer is intercepted by an outside source, who diverts the funds to non – genuine source. All in all, you might not get your money’s worth, unless you are aware of the possibilities of money transfer frauds.

Given below are few possibilities that can affect your online money transfer orders when you shop online:

Online payment portals:
This is one of the common stages where your online money transfer will be affected. Most online shopping portals require an additional payment portal, to ensure that your money transfer is approved. During this transfer, hackers or any outsider can intercept the payment portal, if it is not secure enough. While they may not get the funds in the money transfer, they can still steal your bank details and use it to their convenience. You must ensure that the website, seller, and payment modes are secure before making any payments.

Modus Operandi:

This has been a common occurrence over the last few years. When you purchase a product and complete your online money transfer, along with receiving an acknowledgment, you may not get the product you want. Alternatively, you may get a product that is damaged or counterfeited. In this case, if you are not protected against fraud purchases, you may lose some percent of your funds, if not all. In this case, the fraud can happen at any time during the sale and delivery process. To avoid such a problem, look for products or marketers who sell and deliver their products. Alternatively, special services, wherein product quality, and delivery are guaranteed, for a premium.

Fake website:

Fraudsters are now upgrading their methods to fleece unsuspecting shoppers, of their funds. These individuals have now set up websites that resemble genuine one’s, along with similar logos and domain names. Alternatively, these individuals also set up a dummy site that possesses a product line that is only available online.

Genuine site with a fake seller :

There is a possibility that when you don’t receive the product, or if it damaged or fake, it is the possibility that the scam could be from the end of the seller or the courier company, by using the details of your online money transfer. In this case, ensure that the website is well alerted about the possibility of such scammers.

What are the benefits of a demat account and why should you be aware of it?

A demat account functions in the same way as a bank account would function. While a bank account is used to store funds, it can also be used to withdraw and deposit funds. Similarly, the demat account is also used to store and deposit securities in its electronic form. These securities are stored in the form of shares, bonds or debentures. As per the Depository Act of 1996, demat accounts are now being made mandatory, if you have more than 500 units in securities,

But while this account is used for this purpose, it also has plenty of benefits. By using these benefits to your advantage, you can make the most of your investment. Here are some of the benefit of this account which you should be aware of.

• One of the main benefits of the demat account is that it is a convenient mode to hold your securities. When you purchase or sell any security, you need not worry about storing it any option, as the demat account is designed to hold these securities in a secure manner.
• Your broker can always hold your securities anytime you purchase or sell them. However, it comes at a price. But the demat account, you need not worry about high brokerage fees, as they have their service fees which are considerably cheaper.

• Before securities were dematerialized, they were preserved and stored physically. However, this increased the risk of misplacement, especially if kept with the broker. Additionally, there was always a risk of thefts and fake securities. Apart from this, there was a high chance of delays in the turnaround period of selling or purchasing. However, with this account, securities are now stored in a dematerialized format which can be electronically accessed. This eliminated all the risks involved with the previous form of storage.

• Apart from the risks of materialized securities, stamp duty was also involved in the transferring. However, with the electronic conversion, there is no stamp duty involved. This reduced the overall expenses when it comes to trading stock.

• The depositary participants are enlisted by the National Securities Depository Limited or Central Securities Depository Limited. These two entities are core linked. Therefore, if there is any change made with a DP, it is updated with the depository as well as the other DP’s.

• As a demat account holder, you can make multiple transactions. You can sell or purchase a single share, anytime you want. As compared to the previous form of storing, it was difficult to purchase or sell physical securities as they used to be stacked together. Dematerialized securities are easily divisible electronically, making it easier to share any amount of shares at any time.

5 fact guide to understanding your fixed deposit

Ask any individual about their most preferred choice of investment option and everyone will indicate the fixed deposit. While there are plenty of reasons as to why this is a preferable option for investments, as compared to others, this is the least risky.

Additionally, you only need to put in a lump sum amount for a fixed time and earn interest during that tenure. In order to make the most out of your investment in this option, you will need to understand the factors behind it. Given below are a few important factors you can consider with this termed deposit:

Fixed returns: When investing in this termed deposit, your funds are parked in a particular bank deposit for a fixed period. The bank or financial institute where you are investing your funds in, will provide you with a fixed interest in exchange for holding your funds. This is the reason why the deposit is termed as a safe option. You will earn profit from this investment, through the form of interest. Depending on your profile or age, you can earn a higher interest. 

Tenure of your choice: With this term deposit, there is a variety of tenure which is available as per your choice. This term can last between 6 months to 10 years depending on your will. The longer you keep your tenure, the more interest you will earn.

Interest payout: The deposit of the interest earned can also be decided on your desire. This can be done when the deposit matures or even at regular intervals. Normally a bank or financial institute will offer a deposit of interest at quarterly, half-yearly or annual intervals.

Loan against your fixed deposit: When you are in immediate need for funds, there is no need to break your fixed deposit. In this case, you can always take a loan against the termed deposit and use it to satisfy your needs. However, the amount of funds that you withdraw is limited. It also depends on your financial profile and your relationship with the bank. Additionally, you may also need to pay interest on the funds that is borrowed.

Tax savings: Plenty of banks and financial institutes provide tax saving schemes along with fixed deposit services. In this case, the total taxable income that you earn is reduced by the amount you save in this deposit. The depositor must ensure that the tenure of the deposit is in between 5 years to 10 years. The maximum amount you are allowed to invest in such deposit for tax purposes is also fixed at 10 lakhs. However, the interest that you earn in this case will be taxable.

Steps to follow for an easy foreign currency exchange

When you travel abroad, there is always a concern how one can send money from abroad back home or even make any international business payments. For most of the time, this step if not a tedious one can also be a taxing one. Not only would you need to search for different banks, exchange providers or even walk the streets of unknown cities for the best conversion rates. Even a small miscalculated decision can increase your costing. In order to have an easy foreign exchange process, here are a few steps you will need to follow:

Step 1: Plan ahead

The first step you need to take is to check for the current mid – market exchange rate. There are plenty of tools that can assist you, which you can find online or even at the service providers. You will need to compare these rates and the fees offered by these banks or currency exchange services or online providers. Once you find the best deal, you can now take the next step to exchange your funds.

Step 2: Understand the foreign exchange costs

Different centers will offer different rates. At the same time, some foreign exchange costings will be transparent, while others are hidden. Therefore, it is important that you are aware of what you will be paying before you make the transaction. While these centers will take steps to ensure that they stay in business by earning profits, there are different options how they do it. One way they do so is through the means of commission, flat fees, handling fees, or even minimum charges. They also may include a spread in exchange rates by purchasing currencies and selling it at a marginal rate. Some centers may also charge based on transfer fees for wire transfers and other forms of delivery.

Step 3: Amalgamate your transactions.
Every currency exchange transaction is associated with costs. Few transactions can result in lower costing. Additionally, depending on the type of transaction you are opting for, you may save plenty of you funds by consolidating multiple fund transfers in one large transaction. In addition to this, some foreign exchange providers may even provide beneficial rates or offer lower commission fees for the currency exchange over a certain amount.

Step 4: Plan for banking overseas especially for extended stays

The above steps are beneficial for those who want to travel abroad for a short duration. However, if you are traveling abroad for a longer or permanent duration, you can consider banking overseas. Opening a bank account in the local bank will help ensure that you funds is not only secure but also provides you with a secure means to transfer funds on a regular basis.