If you are an Expat or South African national looking to send money abroad, you need to look at the best and most cost-effective ways of doing so. Read to know more on international money transfers from South Africa.
In the last few years, a leading number of expats have moved to the beautiful country of South Africa from countries like the US, UK, as well as other European countries. The country of South Africa offers great year-long weather, excellent access to nature as well as bustling cities like Cape Town and Johannesburg.
However, everyone that is looking to migrate to the country needs to contend with one very important aspect- international money transfers. Given the volatility and fluctuation of the ‘Rand’, expats, as well as South African nationals, are looking at steep exchange rates, commissions, and a host of hidden charges that can devalue their hard-earned money.
This is why there are many that are looking for the best international money transfer for South Africa, which is-
- Offers the best and industry-leading exchange rates
- Lowest commission fees and zero hidden charges
- Provides customized and personalized account handling
- Is exceptionally fast to send and receive international transfers
- Ensures complete safety and protection of your transfer
In this article, we are going to cover important aspects of transferring large amounts from South Africa abroad.
The Difficulties of Transferring Money from South Africa Abroad
When you are looking to transfer money internationally, the first thing you need to pay attention to is what the bank thinks about the currency in the host country.
For example, banks are financial institutions that do not prefer currencies that are unstable and characterized by rapid price fluctuations. This affects the exchange rate and exposes the banks to several risks. If you have been reading the news, you know the situation with the Rand.
Ever since the pandemic struck, the Rand has been struggling to stay stable. This means one of two things for individuals looking to receive or transfer money from South Africa abroad-
- If you are sending money from your South African bank account, you will receive a lower sum of money in the account of the foreign country where you, or your relative holds the account.
- If you are receiving money to your South African bank account from another international bank account, you will still be receiving a far lower sum of money (finally) than expected.
The real problem lies in moving from a stable and strong international currency like a dollar, pound, yuan or even rupee and then converting the same into rand, or vice versa. Individuals that have to pay bills in their native country, or send money to their relatives back home suffer the most.
Reasons why South Africans Use International Currencies and not the Rand
The problems and volatility of the Rand means that a lot of individuals try to use international currencies and not the Rand in their money transfer. When you send money abroad, you will incur a hefty transaction fee, poor exchange rates, and a host of hidden charges. The same goes for when you will be receiving funds in your South African bank account.
The major types of additional fees that you will end up paying when transferring large amounts from South Africa-
- Your host South Africa bank will start the extra payment process by adding in a transaction fee to process your international money transfer.
- When the money reaches the recipient bank in a foreign country, that bank too will charges a transaction fee for receiving and processing the transfer from the SA bank.
- There are banks that also charge a commission according to the amounts that you are transferring. This can vary from a few dollars to a few hundred. This is not fixed.
- The currency exchange rate is also taken into account and added to the overall costs that have been mentioned. This is a major sum for unstable currencies like the Rand.
The above four costs are completely ‘extra’ in nature. Let us try to explain the same with the help of an example.
If you want to send back 10000 Rand to your family back in the US through banks, they should receive around $660 USD according to current exchange rates. The family will receive close to just $600. What will happen is that nearly $60 USD will be deducted when you work according to the above four deductions. The sum deducted is around 10% of the sum you sent. It can comprehensively account for gifts that will be denied!
Is there a way to Transfer Money from South Africa Abroad for Cheap?
The good news is that there is a way around banks eating into your hard-earned money. Expats as well as native South Africans are legally obligated to only use banks for international money transfers. A great and credible option is taking help from money transfer services.
In the last few years, more and more individuals ,as well as businesses, are relying on these specialists for their international money transfers. Using a money transfer service means that you do not end up paying the two sets of transaction fees that host and recipient banks will charge. This is a huge convenience for many expats in South Africa.
Taking the above example, when you send the same 10000 Rand to the US, your family will receive close to $630, thereby helping with a substantial sum of $30 more dollars. This is a huge sum, especially for individuals that are sending money back home every month. Additionally, the family in the US will be getting the money a lot faster into their accounts.
The Bottom Line
If you are looking for the best way to transfer money from South Africa, you need to work with expert money transfer services that can help you cut down on costs, provide a safe and secure channel of payment, and ensure that your money reaches the people you love and care about in the fastest possible manner.
Traditional banks are still using antiquated payment systems and charges that are borderline exploitative in nature. If you have any specific questions on how to transfer money from South Africa abroad, please let us know in the comments section below. We would be more than happy to help you out on this sensitive issue.
