A money transfer is a transfer from one bank account to another using a special transfer form. As a rule, you will receive invoices with a certain amount of money and the corresponding bank details of the recipient. It’s a good idea to keep a copy for yourself if you transactions execute.
Depending on where you’re sending money to – either within your country or abroad – there are specific methods of completing the process. If you want to transfer money from another EU country to Germany, you can SEPA Direct Debit to use. However, if you want to make transfers to Germany from third countries, read on here to find out all about it.
What options are there for a transfer from abroad to Germany?
1. Online money transfer
The advantage of these online money transfer services is that you can transfer money without having to set foot in a bank. Most of these services are regulated by the Financial Conduct Authority (FCA) in the UK and are licensed as electronic money institutions. They also have their own security systems that ensure your identity and money are safe.
The only downside to using these services is that they limit the number of transactions you can make per day. This is due to government regulations.
Some of the online money transfer services available in Germany are:
In order to send money abroad using any of these online services, you first need to sign up for an account and verify your identity, which doesn’t take long. However, it can sometimes take several days for your account to be operational. Therefore, if you want to transfer money by a specific date, you should do it in advance.
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2. SWIFT transfers
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an internationally recognized code consisting of 8 or 11 alphanumeric characters and is most commonly used by banks for international transfers. SWIFT is a network that enables financial institutions worldwide to send and receive information about financial transactions in a reliable and secure environment.
However, it is not responsible for maintaining the members’ accounts, nor for carrying out any forms of clearing or settlement, nor does it facilitate the transfer of funds, but only sends payment orders, which are settled by the two correspondent accounts. In order to enjoy banking exchanges, both correspondents must have a banking relationship.
3. Bank Drafts
It is a payment on your behalf, guaranteed by the issuing bank, which immediately debits the payer’s account for the amount of the check and withdraws the funds from their account. Bank drafts are commonly used by banks in dealings with other banks, as well as when a creditor or seller will not accept an ordinary check from a debtor or buyer in another city or country. In addition, your bank charges a fee for the transaction. Under normal circumstances, a draft will always be paid, and it is generally accepted as a cash equivalent – also known as a bank draft.
How much does a transfer from abroad to a German account cost?
Banks in Germany usually charge a flat fee for international transfers. This makes them a good option when transferring large sums abroad. However, they often charge hidden fees and mark-ups on their exchange rates that are not always transparent. These exchange rates may include an additional margin of 5-7% which can quickly add up over time.
No matter what type of money transfer service you choose, the final cost you pay will always be determined by a combination of four factors.
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The transfer fee charged by the bank or transfer company
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The amount to be transferred
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The speed of the transfer
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The currencies involved and the exchange rate at the time of the transfer
When choosing a service, make sure you always check the total cost that takes all of these factors into account. Some companies seem to charge very low fees, but that often means the exchange rate is high and you end up paying more.
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What do I have to consider when making a transfer from abroad to a German account?
If you are transferring money abroad from a bank in Germany, you must provide the following information:
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The recipient’s full name
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Name and address of the recipient’s bank
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International Bank Account Number (WERE GOING)
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SWIFT/Bank code (BIC)
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Bank account number
Most international bank transfers in Germany take between one and five business days to process. Some banks also offer paid options to speed this up. However, speeding up the transfer time can be costly. Therefore, it is better to plan ahead if you need to transfer funds within a specific time frame and want to keep costs down.
Here are some tips to help you save:
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Send larger amounts: It is almost always cheaper to transfer a larger amount at once than several smaller amounts.
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Don’t pay for speed: If you don’t need to transfer your money quickly, you can save money by choosing a longer period.
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Pay attention to minimum transfer amounts: Some companies specialize in transferring small amounts, while others do not allow a minimum amount to be transferred. Find out the conditions of the company you are interested in to secure the best possible rate.
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Consider transfer options: Some remittance brokers offer the opportunity to secure an optimal exchange rate now and then transfer the money at a later date. If you are not in a hurry to transfer your money, you can also schedule it to only be transferred when an optimal exchange rate is reached.
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