Are you planning to send money from UAE to the USA? There are several means to do so, but before you start making your choice, ensure to research their pros and cons. So, what are the things that need to be kept in mind? Let us discuss some of the pointers that you need to consider before having a smooth money transfer.
Research and find out the best ways to send money.
To begin with, you need to be aware of the most convenient ways to transfer funds. Some of them are simple and straightforward ways, such as houses located in UAE, which provide remittance services to bank accounts in the US, international bank-to-bank transfers, online remittance services and cash transfer companies. Let us discuss it a bit further until you understand and choose the most suitable option for you:
a) Using a Bank – A bank is the most common and recommended way to send money to the USA. In addition, many banks have established partnerships with other international banks worldwide, enabling them to send money across borders at a lower cost.
b) Using Remittance Services – These websites connect people in UAE to those in the USA; some popular ones are WorldRemit, Venmo and Remit4x. You can use these websites to transfer online at your time of convenience.
c) Using a Money Transfer Company – Several companies in UAE offer money transfer services. All you need to have is a recipient agent in the US to receive money and transfer it to the individuals directly. These companies are helpful if you do not have a bank account in the UAE. Some well-known exchanges include Al Ansari and Lulu Financial. Some of them even provide services to send money via Western Union. This method can be a reliable medium in an emergency, and they are usually cheaper than banks but are riskier as well.
Know the Right Time to Transfer
One of the things to consider while transferring money from the UAE to the USA is to know the best time. There are times when the demand for money is high, and the rates are high. It might cost you more if you send money when there is a high demand in the UAE market. These durations can be when salaries are paid, or people receive their pension. It is advisable not to make a transaction but if you need to transfer money during these times, make sure you are ready to pay extra.
Currency Conversion
The currency conversion process is another factor you need to know while transferring money from UAE to the USA. It is because the currency conversion process will affect the amount received. For example, the current exchange rate is 1 UAE Dirham = 0.27 US dollars. A good piece of information is that the UAE dirham is pegged to the US dollar and is among the world’s most stable currencies. (Currency conversion expressed above is referred to based on the online exchange rate dated 07-20-2022).
Do not forget to double-check all the information before sending your money.
The most important aspect of the money transferring process is proofreading the information. You must ensure that all the information is correct before you move your funds. For example, if you send money to a new person, you have never interacted with, ensure that the details are verified with that person. It will help you avoid any errors while the transaction takes place.
Fees and Timing of Money Transfer
Understanding the fee structure and charges levied during the money transfer is a good practice to avoid unnecessary transactional expenses. Prior to deciding the mode of transfer, there are some ways to avoid the transfer fees, which are briefed below:
a) Using a bank – Banks charge the lowest transfer fees. However, the amount that you receive might be lower.
b) Using remittance services – Some companies charge a nominal fee for transferring money. It might be a good option without paying high transfer fees.
c) Using money transfer companies – Money transferring establishments are the riskiest way to transfer money. Due to the high-risk nature, they charge high transfer fees.
Apart from the above charges, it is good to know that there is no personal income tax levied in the UAE. Hence, US citizens and green card holders in the UAE must file a US tax return annually.
Conclusion
Sending money from UAE to the USA can be challenging at times. However, it is not just UAE to the USA, but any part of the world. However, if you keep these tips in mind, it will make things easier for you. So what are you waiting for? Send money and make your loved ones happy!