Federal Bank Remittances, International Money Transfers, and Alternatives
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If you are looking for a way to send money abroad from India, you might want to consider Federal Bank remittance. This is a service offered by Federal Bank, one of the leading private sector banks in India that allows you to transfer money to over 100 countries using various modes of payment.
Federal Bank specializes in international remittance services, catering to the needs of individuals and businesses seeking to transfer funds across borders. With a strong network of correspondent banks and strategic partnerships, Federal Bank offers a secure and efficient platform for international remittances. Despite the name, a common challenge with Federal Bank international transfer is the cost of fees. International money transfers may incur fees that vary depending on the transfer amount or destination country. Federal Bank strives to offer competitive fees for remittance, but you may find better deals with other money transfer providers.
That's why we recommend using Monito's comparison tool, the leading comparison engine for international money transfers. Monito's tool helps you find the best deal for your money transfer by showing you the real-time fees and exchange rates of dozens of providers, including Federal Bank remittance. You can compare them side by side and choose the one that suits your needs and preferences.
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Key Facts About Federal Bank International Money Transfers
|⏱ Federal Bank int'l transfer time|
2-5 business days
|⚡Transfer time via Monito|
1-2 business days
|💵 Federal Bank payment method|
|💸 Payment methods via Monito|
Federal Bank International Transfers of Funds
- 01. What are Federal Bank's international transfer charges?
- 02. How to transfer money to international bank account from Federal Bank
- 03. How long do Federal Bank international transfers take?
- 04. Alternatives to Federal Bank for international money transfers
- 05. Is Federal Bank worth it for international transfers?
- 06. FAQ About Federal Bank International Money Transfers
Federal Bank International Transfer Charges
The Federal Bank has a separate platform, the Fed-e-Remit, to carry out outward remittances. As an online system, Fed-e-Remit allows you to make transfers at any time of the day and provides convenient options for tracking and registering beneficiaries. However, it's worth noting that there are separate fees associated with making transfers through Fed-e-Remit, which are in addition to the regular banking fees charged by Federal Bank.
A Fed-e-Remit transfer broadly has two associated fees. Firstly, there is a fixed SWIFT remittance fee of Rs. 500 per transaction, regardless of the amount sent.
The second fee is where you may feel the need to weigh more options. There is an additional fee hidden within the exchange rate offered by Federal Bank.
The bank typically sets a weaker exchange rate compared to the real rates provided by sources like Google or Reuters, allowing them to charge an undisclosed fee and profit from each converted rupee.
Although these fees may appear insignificant individually, they can accumulate and result in a substantial cost during a transaction. Here is an illustration of the amount that you will incur if you send $1000 abroad via Fed-e-remit:
- Amount to send: $1000
- Exchange rate for $1: Rs. 82.71
- Transfer fee: Rs. 500
- Cost to you for transfer: Rs. 84,629 (as of 12th July 2023)
Clearly, the bank's marked-up exchange rate leads to high costs even with a lower transfer fee. To navigate this issue of high transfer costs, you can use Monito’s comparison tool and find other trustworthy services to transfer your money through.
How to transfer money to international bank account from Federal Bank
In order to utilize the Fed-e-Remit system provided by Federal Bank for outward remittances, you need to meet the following eligibility criteria:
- Possess a KYC-compliant account.
- Maintain an active account with Federal Bank.
- Have the internet banking facility, FedNet, enabled.
- Ensure that your PAN card is linked to the account.
- Once you fulfil these requirements, you can initiate a transfer by following these simple steps:
- Login or register through a one-time registration for Fed-e-Remit.
- Add the necessary details of your beneficiary.
- Enter the transaction details.
- Submit the transaction for processing.
It's important to note that all outward remittances must adhere to the guidelines of the Reserve Bank of India's Liberalized Remittance Scheme (LRS). Under this scheme, Indian residents are restricted from sending more than $250,000 equivalent overseas from India. Additionally, the purpose of the remittance must align with the specified guidelines.
How Long Do Federal Bank Remittances Take?
Traditional SWIFT transfers via Federal Bank typically require 2-5 business days for processing. In comparison, services like Wise and Western Union offer faster transfer times, which brings us to the next part of the article, your alternative options.
Federal Bank International Money Transfer Alternatives
Following the announcement in India's Union Budget 2023-24, there is an increase in Tax Collected at Source (TCS) rates from 5% to 20% on overseas tour packages and funds remitted under the Liberalized Remittance Scheme (LRS) for purposes other than education and medical. These revised tax rates are scheduled to take effect from July 1, 2023. This development highlights the importance of making informed comparisons and selecting the most suitable platform for transferring money from India to other countries. As such, Monito's comparison engine provides us with the following alternatives to Federal Bank international money transfer:
Remitout is a suitable alternative for students looking to transfer money internationally. They typically offer competitive exchange rates and low or zero transfer fees for student transfers. However, there is a limit of up to $250,000 that can be sent in a single financial year. Here are the transaction details associated with Remitout:
- Nostro charges: $15 - $30 per transaction.
- GST: 18%.
- Merchant service charge: Approximately 2% of the transaction amount.
Payment methods accepted by Remitout include bank transfers, debit/credit cards, and mobile wallets like Paytm or Google Pay. The money usually reflects in the recipient's account within 2 business days (same day if the transaction is done before 1 pm).
Wise, formerly known as TransferWise, is a popular choice for international money transfers. They offer transparent and competitive exchange rates, often close to the mid-market rate. Here are the transfer details:
- Fixed fee: Rs. 127.98.
- Variable fee: 2.03% per transfer.
Payment methods accepted by Wise include bank transfers and credit/debit card payments. The transfer typically takes 2 business days.
Instarem is another alternative that provides international money transfer services. They offer low transfer fees and competitive exchange rates. Costs can vary based on factors such as the transfer amount and destination country. Here are the transfer details:
- Transaction fees: Between 0.25% and 1%.
- Overall charges: Around 4%, including hidden charges like margins on foreign exchange rates, bank charges, and service charges.
- Fixed fee: Rs. 1,200.
Payment methods accepted by Instarem include debit/credit cards, bank transfers, and wire transfers. The transfer time is typically 1-2 working days (2-5 business days for the first transfer).
Halo Financial specializes in handling large transfers, such as property purchases or investments. They offer competitive exchange rates and provide personalized services tailored to individual needs. Here are some details about Halo Financial:
- Minimum transaction amount: £2,000.
- No fees for transactions above £5,000.
- Exchange rate margins: 0.1% to 1%.
Halo Financial offers expert advice and personalized support, including dedicated account managers to guide customers through the transfer process and manage currency risks.
For more information about the costs, payment methods, and transfer times for Halo Financial, click here.
Conclusion: Is Federal Bank Remittance Worth Your Time and Money?
Leveraging cutting-edge technology and a robust compliance framework, customers can rely on Federal Bank to facilitate timely and hassle-free transfers, ensuring that their funds reach the intended recipients with speed and reliability. Whether it's for personal reasons, business transactions, or financial support, Federal Bank's international remittance services provide a convenient and trustworthy solution for customers looking to send money globally.
Nonetheless, Federal Bank international money transfer has its limitations. Apart from the hidden costs, Federal Bank can only remit money in 13 currencies, including Australian dollars, Canadian dollars, US dollars, Singaporean dollars, Swiss francs, Euros, British pounds, Japanese yen, New Zealand dollars, South African rands, UAE dirhams, and Qatari riyals. Therefore, you should consider your specific needs and explore alternative options with the help of Monito. This will ensure you find the most cost-effective and efficient solution for your international transfers.
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FAQ: Federal Bank Remittance and Alternatives
What is Federal Bank Remittance?
Federal Bank Remittance is a service offered by Federal Bank, one of India's leading private sector banks, that enables individuals and businesses to transfer money to over 100 countries using various modes of payment. It specializes in international remittance services, providing a secure and efficient platform for cross-border fund transfers.
Are there any challenges with Federal Bank international transfers?
One common challenge with Federal Bank international transfers is the cost of fees. While the bank aims to offer competitive fees for remittance, it is important to compare with other money transfer providers to ensure the best possible deal. Hidden fees within the exchange rate offered by the bank can also impact the overall cost of transfers.
How can I compare money transfer options?
To compare different money transfer providers, including Federal Bank remittance, Monito's comparison tool can be helpful. It allows you to view real-time fees and exchange rates from various providers side by side, helping you make an informed decision based on your specific needs and preferences.
What are the charges associated with Federal Bank international transfers?
For Federal Bank's Fed-e-Remit service, which facilitates outward remittances, there are two primary fees. The first is a fixed SWIFT remittance fee of Rs. 500 per transaction, regardless of the amount sent. The second fee is a hidden charge within the exchange rate offered by the bank, which may result in additional costs.
How long does it take for funds to be transferred through Federal Bank remittance?
Traditional SWIFT transfers via Federal Bank typically require 2-5 business days for processing. However, other alternatives like Wise and Western Union may offer faster transfer times.
Can I transfer money to any international bank account from Federal Bank?
Yes, with Federal Bank's Fed-e-Remit system, you can transfer money to international bank accounts in over 100 countries. However, it is essential to ensure that your outward remittances comply with the guidelines of the Reserve Bank of India's Liberalized Remittance Scheme (LRS).
See Our Other Money Transfer Guides
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