What is a Wire Transfer?
A wire transfer is an electronic transfer of money from one bank or credit union to another, domestically or internationally, using a network like SWIFT or Fedwire. It is also known as a bank transfer or a bank wire, and sending or receiving money through a wire transfer is also called sending or receiving a wire.
How do Wire Transfers work?
To send a wire, you just need to provide information about the recipient – like their name and bank account – to your bank by filling a form online or by visiting a physical branch. To receive money through a wire transfer, you need to provide your details to the sender, and they initiate the transfer through their bank.
How much does a Wire Transfer cost? What is the fee?
The fee depends on the bank, but usually it takes around $10 to receive a wire transfer, and around $30 to send a wire.
Why should I use wire transfers for sending or receiving money? What are the advantages?
The main benefit of a wire transfer is that money is available quickly – domestic wires can complete on the same day, and even international wire transfers take only 1-2 days. Plus, a bank wires money only when the funds are available in the sender’s account, so you can be certain that the money is yours once you receive it; like a cashiers check.
Are there any disadvantages of wire transfers?
You need to be careful about who you are sending money to, especially if you are wiring money to a place like Western Union that pays out the money in cash to the recipient. In such cases, it is difficult to verify who actually got the money, since someone with a fake ID can collect the cash. Also, the cost of a wire transfer could be higher than other ways of transferring money.
Podcast: What is a Wire Transfer
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about wire transfers: What is Wire Transfer, How do Wire Transfers work, How much does a Wire Transfer cost / What is the Wire Transfer fee, Why should you use wire transfers for sending or receiving money – what are the advantages of wire transfers, Are there any disadvantages of wire transfers, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-a-wire-transfer/