7 Best Ways to Send Money in 2020: Key Takeaways

7 Best Ways to Send Money in 2020: Key Takeaways.

Sending money seems easier than ever, with numerous options allowing people to transfer funds more or less instantly.  However, there are ways to transfer funds that are safer, faster, and easier to manage. 

In the technology-driven world we live in today, transferring money by cash, check, bank draft, or money order may seem like it’s going the way of the dinosaur.

While these traditional methods may appear less popular when there are faster electronic methods for transferring money between accounts, states, and even countries, that doesn’t mean that the old ways are not still viable options.

In addition, if cost is your primary concern, there are inexpensive ways of transferring money, and the cheapest method may vary depending upon your circumstances.

Here Are The Best Ways to Send Money

Cash

  • Max transfer amount: No limit
  • Fee: None
  • International: No

Ah, yes. Good, ol’ reliable cash. The preferred currency of pretty much anyone, anywhere. There’s no limit on how much you can give, there’s no transfer fee, and there’s no waiting period.

For a quick and easy repayment, an envelope of dollar bills is the way to go, but it should be noted that there will be no history of the transaction, something that can make those who are more cautious uncomfortable.

Bank Transfer

  • Max transfer amount: No limit, although there may be internal transfer limits
  • Fee: Depends on your bank’s policies
  • International: Yes

If you and your friend happen to be customers of the same bank, it’s most likely you have the option of transferring money to their account for free.

If they have an account at a different financial institution, it’s common practice to charge a transfer fee.

You’ll also need your friend’s account number and routing number, which can take some time to track down. There are several banks, including Bank of America and Wells Fargo, that let you transfer money to someone for free using their email address.

To avoid any confusion or unwanted fees, check with your bank first before sending any money.

PayPal

  • Max transfer amount: $10,000 per transaction
  • Fee: Free if using PayPal balance or bank account
  • International: Yes

PayPal has now been around for years and is still one of the best ways to send someone money (if you both have PayPal accounts).

There’s no fee if you send the money through PayPal from your PayPal account balance or your bank account, but PayPal does charge fees for money that’s sent from a debit or a credit card (2.9 percent of the total amount plus an additional $0.30).

Xoom

  • Max transfer amount: $2,999 per week
  • Fee: No
  • International: Yes

Xoom, Venmo’s sister app, is also owned by PayPal and works similarly, but is meant for sending money abroad (55 countries as of now). Fees vary depending on what country your friend lives in; your fees will be lowest if you pay with your bank account.

If you’re unsure, Xoom has a handy online fee calculator.

Venmo

  • Max transfer amount: $2,999 per week
  • Fee: Free
  • International: No

PayPal’s digital wallet app, Venmo, has quickly become extremely popular. Not only can you easily send money to someone from your phone. It also acts as a social network; you can see a feed of your friends’ Venmo transactions.

The reasoning behind this? Venmo believes it helps you “remember the moments you share with friends.”

Like Google Wallet and PayPal, Venmo is free when you send money using your Venmo balance or bank account. They charge a 3 percent fee for credit cards.

Read Also: Stores That Accept Venmo and Don’t Accept Venmo 2020 Updates

Key Takeaways

  • Traditional methods of sending money—such as through your bank—are still applicable today.
  • Overseas transfers through your bank are possible, but there are additional fees charged for sending the money.
  • New apps like Paypal and Zelle make it easy to send money to friends and family in a matter of minutes, with no fees.
  • Western Union and MoneyGram can be used to send money to a different city, state, or country for a fee.
  • Cash is another option for transferring money, as it is free to withdraw money from one bank and make a deposit at the bank where the recipient has a checking account.

Google Wallet

  • Max transfer amount: $9,999 per transaction or $50,000 per 5-day period.
  • Fee: Free
  • International: No

With Google Wallet, you can send money to anyone in the US using their email address or phone number. When your friend receives the money, they can cash out to their bank account with their debit card for easy access.

An added bonus: The Google Wallet mobile app is extremely secure. The app can only be accessed with your Google Payments PIN and if you lose your phone, you can instantly remove access to your account.

USForex

  • Max transfer amount: $2,999 per week
  • Fee: Yes, for transactions below $5,000
  • International: Yes

Whether you need to send large amounts of money at home or abroad, USForex is hard to beat. USForex accepts all major currencies and allows you to lock in an exchange rate before you transfer any money.

If you send an amount over $5,000 you’re not charged a transfer fee; anything below that amount has a flat, $5 transfer fee.

While USForex offers the convenience of both their online service and a mobile app, you can also call if you need someone to make the transfer for you, and one of its dealers will be able to help.

Final Words

Whether you need to help a friend in a bind or just need to split a bar tab, these options can help you send money safely.

If this article is useful then so will your friends, why not share it on your social media platforms.

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