If you need to move money from one bank to another, you might be considering a wire transfer. Wire transfers can be a suitable option because they’re a fast and safe way to send money.
However, this can be an expensive option, so most banks and credit unions charge hefty fees for this service. This article will explain how wire transfers work, what the average bank charges, and how you can lower or even eliminate wire transfer fees altogether.
What is a wire transfer, and how does it work?
A wire transfer is a way to move money electronically to another person or financial institution. It’s a safe and reliable way to move money since no cash is handled. And since wires are quick, it’s a suitable option when you need to send money fast.
To send a wire transfer, you need the recipient’s name, address, bank account number, routing number, and the amount you want to wire. Some banks and credit unions will allow you to process a wire transfer online, while others make you come in and fill out paperwork. Once you’ve filled out this information, the bank will transfer the money, and you’ll be good to go.
How long does a wire transfer take?
It typically takes less than 24 hours for a domestic wire transfer and 1-2 business days for an international wire transfer. However, internation transfers can take up to five days. Times vary based on several factors, such as the financial institution and the destination of the recipient.
Wire Transfer Fees of 25 Financial Institutions
Wire transfer fees typically range from $0 to $35, depending on the bank or credit union. Listed below is a chart of some of the biggest banks’ domestic and international wire transfer fees.
| Financial Institution | INCOMING DOMESTIC | OUTGOING DOMESTIC | INCOMING INTERNATIONAL | OUTGOING INTERNATIONAL |
|---|---|---|---|---|
| Alliant Credit Union | $0 | $25 | $0 | $50 |
| Ally Bank | $0 | $0 | $0 | $0 |
| Axos Bank | $0 | $35 | $0 | $45 |
| Bank of America | $15 | $30 | $16 | $35 in foreign currency $45 in U.S. dollars |
| BMO Harris Bank | $0 | $25 | $0 | $45 |
| Capital One 360 | $0 | $30 | Not available | Not available |
| Charles Schwab | $0 | $15 – $25 | $0 | $15 – $25 |
| Chase | $15 | $25 | $15 | $5 in foreign currency $40 in U.S. dollars |
| Citibank | $15 | $25 | $15 | $35 |
| Connexus Credit Union | $0 | $20 | $0 | $50 |
| Discover Bank | $0 | $30 | $0 | $30 |
| Fidelity | $0 | $0 | $0 | 3% of foreign currency amount $0 if sent in U.S. dollars |
| Fifth Third Bank | $15 | $30 | $15 | $50 – $85 |
| HSBC Bank | $15 | $35 | $15 | $35 |
| Huntington Bank | $10 – $15 | $25 | $15 | $75 |
| KeyBank | $0 | $30 | $0 | $45 |
| Marcus by Goldman Sachs | $0 | $0 | $0 | $0 |
| Navy Federal Credit Union | $14 | $0 | $25 | $0 |
| PNC Bank | $15 | $30 | $15 | $45 |
| Regions Bank | $15 | $30 | $18 | $50 |
| TD Bank | $15 | $25 | $15 | $40 |
| Truist | $15 | $30 | $30 | $65 |
| Union Bank | $15 – 25 | $20 – $45 | $15 – $25 | $50 – $60 |
| U.S. Bank | $20 | $30 | $25 | $50 |
| Wells Fargo | $15 | $30 | $16 | $35 in foreign currency $45 in U.S. dollars |
How much are wire transfer fees?
Several factors will determine how much a wire transfer costs. The most significant factor will be the bank or institution you’re conducting the wire transfer through.
For instance, nonbank providers tend to charge lower fees to process wire transfers. Though if you are a regular customer at a particular bank, they may give you a break on the fees.
Wire transfer fees are also determined by whether you’re doing a domestic or international wire transfer. As outlined in the chart above, international wire transfers tend to be more expensive.
That’s because banks can process outgoing domestic wire transfers through one payment system instead of multiple banking systems. They may also need to use an intermediary bank to facilitate the transfer.
Incoming Wire Transfers vs. Outgoing Wire Transfers
Some banks offer free incoming wire transfers, or they might waive the fees depending on the type of bank account you have. However, for the banks that do charge them, incoming wire transfer fees tend to be cheaper than outgoing wire transfer fees.
This is because outgoing wire transfers require more work and resources to process, including verifying account information and ensuring that the money is being sent to the correct recipient.
International Wire Transfers
Banks and money transfer providers charge other financial institutions a mid-market rate for trading large amounts of foreign currency. However, when they convert the money for customers, they charge a higher markup. The markup is determined by the percentage of the amount being sent. You can check the mid-market rate online to see how much more your bank is charging you than the rate it pays.
If your bank doesn’t convert the money for international wire transfers, the foreign bank will do it and generally tack on their own fees. Incoming and outgoing international wire transfers both typically involve additional fees and charges, such as currency conversion fees, transaction fees, and intermediary bank fees. The best way to avoid these fees is by using a nonbank option for international wires.
ACH vs. Wire Transfers
If you’re looking for alternatives to wire transfers, you can also consider an ACH transfer. ACH is a safe way to transfer money from one bank account to another.
The advantage of doing an ACH transfer is that it’s usually free to complete. However, ACH transfers are less convenient than wire transfers. Wires can be completed in as little as a few hours, whereas ACH transfers typically take two to three days.
Wire transfers are a much more secure way to receive money, but it is riskier to send them. Once wire money, it cannot be undone, even if you made a mistake. On the other hand, ACH payments can be reversed in cases of error or fraud.
Other Alternatives to Wire Transfers
People often choose bank wire transfers because it’s a safe way to move large amounts of money electronically. But if you’re conducting a smaller transaction, there are more affordable alternatives you can consider.
For instance, your bank’s online bill pay is a great way to send money to another person safely. You can also use peer-to-peer payment options like Zelle, Venmo, or Cash App. There are no fees to use the app, and the money is transferred instantly.
You can also send money through PayPal, Square Cash, or Venmo. And even Facebook Messenger provides an option for transferring money to other people.
How to Avoid Wire Transfer Fees
If you’re interested in sending money via a wire transfer, here are a few ways you can avoid or reduce wire transfer fees.
1. Consider online banks and other financial services
Large banks such as Bank of America, Chase, and Wells Fargo are notorious for charging exorbitant fees for wire transfers, which can drain your wallet. Luckily, there are alternative financial service providers, such as Western Union, Wise, and MoneyGram, that can save you money.
Furthermore, online banking has become an increasingly popular trend for individuals seeking cost-effective and convenient banking services. Online banks offer a plethora of services, including checking and savings accounts, loans, and credit cards, often at lower fees and higher interest rates compared to traditional brick-and-mortar banks.
If you’re looking for a checking account that has no wire transfer fees, check out Fidelity, Ally, and Marcus by Goldman Sachs.
However, before choosing an online bank, be sure to do your research. Verify that the bank is FDIC-insured, which means that your deposits are safeguarded up to $250,000 per depositor. Additionally, assess the bank’s fees and interest rates and review their customer service and support options.
2. Wire the money in a foreign currency
Some banks will give you the option to conduct wires in a foreign currency. However, you don’t have to have the foreign currency on hand since the bank will convert it for you. This can be a good way to cut down on or even eliminate the wire transfer fee.
3. Schedule recurring wire transfers
You may be able to earn a discount by scheduling recurring wire transfers. However, if you anticipate needing a money transfer on a regular basis, your bank can probably offer you cheaper options.
4. Do it yourself instead of having the bank initiate it
Many banks will lower the fee if you do the wire yourself instead of having the bank initiate it. For instance, you could earn a discount by doing a wire transfer online instead of visiting a branch and having a teller do it for you.
By wiring the money yourself, you could cut down on the wire transfer fee by $10. Just make sure you feel confident about your ability to initiate a wire transfer on your own. Banks cannot cancel these transactions, so you don’t want to make a mistake.
5. Choose a bank that offers free wire transfers
Some banks will waive wire transfer fees for their customers. These discounts are usually given as a perk for more exclusive bank accounts.
Wire Transfer Fees FAQ
Can I cancel a wire transfer?
If the wire transfer hasn’t been completed yet, then you may be able to cancel it. However, it’s important to contact your bank as soon as possible to attempt to cancel the transfer.
What information do I need to initiate a wire transfer?
You’ll need the recipient’s full name, address, bank account number and routing number.
Are there any fees associated with wire transfers?
Yes, most banks charge a fee for wire transfers. As you can see above, the amount of the fee varies depending on the bank and the type of transfer.
How much money can I transfer with a wire transfer?
The amount you can transfer depends on the bank and the type of transfer. Generally, domestic transfers have a limit of $10,000 while international transfers may have a limit of $50,000.
Is a wire transfer secure?
Yes, wire transfers are safe and secure. Banks use encryption and other security measures to protect your information.
What is the difference between a domestic and international wire transfer?
Domestic wire transfers occur within the same country, while international wire transfers occur between different countries. International wire transfers may take longer to process and may have higher fees associated with them.
Summary
Wire transfers are a secure way of sending money electronically to another person or bank. They are typically considered the safest way to transfer money, but they can come with hefty fees.
You’ll need to decide for yourself whether these fees are worth it. Here are a few things to keep in mind before sending a wire transfer:
- Check with your bank to see what kinds of fees they charge. If they charge high fees, you can switch to a bank that charges more reasonable rates.
- If you want to substantially cut down on wire transfer fees, you can look into other financial service companies like Western Union or TransferWise.
- If you only need to transfer smaller amounts of money, consider alternative money transfer options such as like Zelle, Venmo, or Cash App. These transfers happen immediately and won’t cost you any fees.
