The internet has made it very easy for us to send money abroad these days. Just a few swipes or clicks on your smartphone or PC and you will be able to remit money to your family and friends living in a foreign country. It has been a long time since Singapore established itself as one of the prime business hubs in the world. The small island nation has become one of the strongest economies in the world with its vast commercial infrastructure. Traders around the world look forward to establishing trade relations with organisations in Singapore. Ever-growing business interests in Singapore have given rise to the need to remit money to Singapore.
Though it is easy to send money to Singapore, most people end up losing money on their transfer as they fail to look into some fairly simple aspects. So, do you want to know the mistakes that you should refrain from committing during money remittance to Singapore? Well, here you go:
1. Plan your money transfer to Singapore in advance
Of course, money transfers are very urgent and everybody wants to do it as quickly as possible. But it is also possible to plan a money transfer to Singapore. Actually, instant money remittance to Singapore often comes at a higher rate. When you are sending money to Singapore without planning in advance, then you will have to pay 3-6 percent more money as transfer fees instead of the general rate of 1-2 percent. However, if you plan your transfers in advance, then you will be able to transfer the money at the best rates available.
2. Lack of awareness about the exchange rate of money remittance to Singapore
We all want to transfer money to Singapore at the best rates. However, the exchange rate varies with the location as well as applications, agencies or banks that you use to send money to Singapore. So, find out the best rate and save a lot of money on your transfer.
3. Not knowing the best way to send money to Singapore
Most people do not search for the best ways to transfer money to Singapore. They take suggestions from people and follow that blindly. However, it is a common mistake that you should avoid. There are actually several ways to transfer money to Singapore. But the transfer fees and the time taken to transfer money to Singapore vary as per the agency or application that you are using. Generally, banks charge some 2-6% of the money you are transferring as transfer fees if you are sending 1000 SGD to the recipient. So, always look out for the option that is cost effective and requires less time as they are the best options to go with.
4. Using a credit card to send money to Singapore bank account
When sending money to Singapore with the help of an international money transfer app, it allows you to remit money to Singapore by using your credit or debit card. However, it is advisable to avoid using a credit card to transfer money to Singapore. Firstly, when you are sending money using your credit card, the card issuer might consider the cash transfer as cash-in-advance. Besides, you might have to pay additional taxes if you use a credit card. The amount that you will pay as a tax depends on the agency that you are using to transfer money to Singapore as well as on the bank that issued you the credit card. Suppose, if you use a credit card to transfer money to Singapore then you will have to pay extra money as tax along with the general transfer fees.
5. Entering wrong details of the recipient
This is actually a very rookie mistake, yet, a large section of people make this mistake while sending money abroad. Once you have entered wrong recipient details and executed the money transfer, the chances of getting your money back are very slim. Moreover, if you have sent extra money, and want that extra money back and the receiver refuses to transfer it back, you end up losing the money. One cannot force the bank to take any interest in this matter as it’s a transaction between two individuals. Before you send money to a Singapore bank account, check thoroughly whether you have entered all the details correctly before you click on the send button.
6. Converting the currency through your bank account
It is always a mistake to convert the currency to Singapore Dollar (SGD) through banks while transferring money to Singapore. The exchange rate at which the banks convert the currency to Singapore Dollar among themselves is not available to the general public. Thus, 2-4 percent extra is charged by the banks over the standard inter-bank rate. Hence, always make informed decisions in order to transfer money to Singapore at the best rate.
If you keep these tips in mind, money transfer to Singapore will become easy as you will be able to avoid these mistakes easily. Happy and safe transacting!
This article first appeared on Instarem, a guest contributor on The Seedly Personal Finance blog.
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