Jake Miller
International wire transfers are a quick and convenient way to send money across the globe, but they can come with a set of challenges. Banks are free to set their own exchange rates, which often results in customers receiving slightly less money than the mid-market rate. Additionally, there are usually fees involved, and these vary depending on the bank and the type of account held. While some banks offer free international wires, these are often limited to high-value clients with premium accounts.
| Characteristics | Values |
|---|---|
| Banks with free international wires | Citibank, CIT Bank, Citizens Bank, Eastern Bank, ETrade, Fidelity, HSBC, Interactive Brokers, Mercury, Morgan Stanley, PNC Bank, Schwab, Synchrony Bank, TBK Bank, TD Bank, Bank of America |
| Conditions for free international wires | Minimum balance of $25,000, $500K, or six-figure-plus amounts; specific account types; business accounts; premier/high-end tiers; cash management accounts |
| Costs for international wires | $0 to $50 or more; $15 per incoming wire; $25 for domestic wire; $35 for teller-assisted wire; $65 on the receiver's end |
| Factors impacting cost | Exchange rates; fees charged by recipient's bank, intermediary banks, or foreign taxes; currency conversion; markups; transfer method (online, phone, branch) |
| Alternatives to bank wires | Non-bank options, e.g. Wise, Zelle, Venmo |
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What You'll Learn
Banks that offer free international wires
International wire transfers can be costly, with banks charging a range of fees for the service. These fees can depend on factors such as the amount being transferred, the type of account, and whether the transfer is made online, over the phone, or in-branch. Some banks may also require a minimum account balance to waive wire transfer fees.
Citibank
Citibank offers free international wire transfers for its Citigold Private Client, Citi Alliance, Citigold International, and basic Citigold account holders. The bank also provides free wire transfers for Private Bank accounts. For business accounts, Citibank waives some wire transfer fees for preferred program members. For example, the CitiBusiness Preferred Banking Plus account offers four free international wires per month with a $95 monthly fee, which can be waived with a $50,000 daily balance.
Bank of America
Bank of America offers free incoming wires for Business Advantage Relationship Banking account holders with a waivable $29.95 monthly fee. However, there is a $15 fee for incoming international wires. Additionally, digital payments in a foreign currency have no transfer fee, but the bank makes money from the foreign currency exchange.
HSBC
HSBC offers free international wire transfers for its Premier account holders.
Fidelity
Fidelity offers free incoming and outgoing domestic and international wire transfers in US dollars through its cash management account. However, the receiving or sending bank may still charge a fee.
Mercury
Mercury offers free wire transfers for business accounts, including domestic and international transfers.
Other Banks
Other banks that offer free or discounted international wire transfers under specific conditions include Frost Bank, Eastern Bank Premier Checking, Citizens Bank, PNC Bank, and TD Bank. Additionally, some banks may waive wire transfer fees for high-value clients or those with higher-tier accounts.
It is important to note that the information provided may be subject to change over time, and it is always advisable to check with your bank for the most up-to-date information regarding fees and transfer options.
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Account types for free wires
When it comes to account types for free wires, several banks offer specialised accounts or have minimum balance requirements. Here are some examples:
Citibank
Citibank waives wire fees for several relationship bank accounts, including Citigold Private Client, Citi Alliance, and Citigold International, as well as the basic Citigold account. It also offers free wire transfers for Private Bank accounts. Additionally, Citibank Gold accounts offer no wire fees, but a minimum balance of $500K is required to waive incoming and outgoing wire fees.
CitiBusiness Preferred Banking
CitiBusiness Preferred Banking offers preferred account holders their first five incoming wires, the first two outgoing international wires, and the first two outgoing domestic wires free each month. This requires a $40 monthly fee or a $15,000 average daily balance.
CitiBusiness Preferred Banking Plus
The Plus account from CitiBusiness provides unlimited free incoming wires and four free international wires per month. There is a $95 monthly fee, which can be waived with a $50,000 daily balance.
Chase
Chase offers free wire transfers for customers with the Sapphire Checking account. The Sapphire Checking account has a $25 monthly fee or requires a combined average daily balance of $75,000 in qualifying Chase banking and investment accounts. Chase Private Client Checking also provides free wire transfers with a monthly fee of $35 or a combined average daily balance of $150,000.
Bank of America
Bank of America offers free incoming wires for Business Advantage Relationship Banking account holders, with a waivable $29.95 monthly fee. They also provide free incoming domestic wire transfers for Relationship Checking account holders with a $25 monthly fee that can be waived with a daily balance of $20,000 or enrollment in Preferred Rewards.
HSBC
HSBC offers free domestic and international outgoing wire transfers for Premier/Jade customers, provided all account holders are Premier.
Mercury Business
Mercury Business offers a bank account that includes free wire transfers for both domestic and international transfers.
Fidelity
Fidelity, an investment brokerage, offers fee-free wires for its cash management account. However, the sending or receiving bank may still charge a fee.
Other Banks
Other banks offering free wires for specific accounts or with minimum balance requirements include Frost Bank, PNC Bank, Eastern Bank, Citizens Bank, ETrade, and TD Bank.
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Online vs in-branch transfers
When it comes to transferring money, you have a few options to choose from. You can either opt for an online transfer or visit a branch in person to initiate a wire transfer. Both methods have their own set of advantages and considerations. Let's explore the differences between online and in-branch transfers in detail:
Online Transfers
Online transfers offer a convenient and efficient way to send money, especially when using a banking app or website. Many banks allow you to transfer funds online, providing a quick and easy process. Some banks may also offer promotional benefits, such as lower fees or faster transfer times, for using their online platforms. Additionally, online transfers can be initiated from anywhere in the world, as long as you have access to your banking app or website. This can be particularly useful if you're travelling or are unable to visit a branch in person.
However, there are a few considerations to keep in mind. Online transfers may require you to have specific information about the recipient's account, such as their account number, routing number, and SWIFT code for international transfers. It is always a good idea to double-check the fees and exchange rates associated with online transfers, as these can vary between banks and types of transfers.
In-Branch Transfers
In-branch transfers involve visiting a physical bank location to initiate a wire transfer. This option may be more suitable for those who prefer face-to-face interactions or have complex transfer requirements. By speaking with a bank representative, you can ask questions, clarify details, and ensure that you have provided all the necessary information. In-branch transfers can also be helpful for first-time transfers, as you can receive guidance and support throughout the process.
However, one of the main drawbacks of in-branch transfers is the inconvenience of having to physically visit a bank location. This can be time-consuming and may not be feasible if you are located far from a branch or are unable to travel. Additionally, some banks may charge higher fees for in-branch transfers compared to online transfers. Therefore, it is important to research the fees associated with in-branch transfers at your specific bank.
Both online and in-branch transfers have their advantages and considerations. Online transfers offer convenience and accessibility, while in-branch transfers provide face-to-face assistance and guidance. When deciding between the two, it is important to consider your personal preferences, the complexity of your transfer, and the associated fees and requirements. By weighing these factors, you can choose the transfer method that best suits your needs and ensures a smooth and secure transaction.
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Currency conversion fees
For example, Wells Fargo sets its own exchange rates when converting currencies, which include a markup. They also charge a shipping and handling fee for ordering foreign currency cash, which varies based on the USD amount ordered.
Bank of America allows customers with a checking or savings account to order up to USD$10,000 in foreign currency over 30 days. They provide a currency converter calculator to determine how much foreign currency is needed and the exchange rates for purchasing.
When using a credit card abroad, you may encounter foreign transaction and currency conversion fees. These fees are typically charged as a percentage of the overall transaction, usually between 1% and 3% of the total purchase, but they can vary. Some credit cards designed for frequent travellers, such as the Citi® / AAdvantage® Platinum Select® World Elite Mastercard®, do not charge foreign transaction fees.
To avoid currency conversion fees, you can use cash instead of credit cards or exchange currency at your local bank before travelling. When using a debit or credit card, selecting to pay in the local currency can also help bypass conversion fees. Comparing exchange rates and fees across different banks and financial institutions can help identify the most cost-effective option for currency conversion.
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Receiving bank fees
Some banks may charge a fee for the work involved in processing incoming wire transfers. This includes the cost of converting currencies, which banks often mark up to make a profit. The recipient's bank may also charge a fee for receiving the funds, which is beyond the sending bank's control. Communicating with the recipient to identify the bank account with the lowest receiving fees can help minimize these costs.
While some banks offer free incoming international wire transfers, others may require certain account types or minimum balance requirements. For example, Citibank waives wire fees for specific relationship accounts, while Frost Bank offers free wires for accounts with a balance of over $75,000. HSBC's Premier accounts are also known for providing free incoming and outgoing international wires.
To avoid high receiving bank fees, consider using a non-bank option or a specialized money transfer service like Wise, which offers transparent and cost-effective transfers. These alternatives often provide better exchange rates and lower fees, making them a more affordable choice for international money transfers.
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Frequently asked questions
Yes, some banks offer free international wires for high-value clients. For example, Citibank offers free wires for Citigold Private Client, Citi Alliance, and Citigold International accounts. HSBC also offers free international wires for their Premier accounts.
Yes, there are non-bank options for international wires, such as Wise and Zelle. These options often provide lower fees and greater transparency.
There are several factors to consider when choosing a bank for international wires, including the fees involved, the delivery time, and the convenience of initiating the transfer online or through an app. It is also important to compare the bank's exchange rate to other sources and understand the fees charged by intermediary banks.
