Remitly vs Xoom: Which one is better?

Indeed, Paypal sucks.

I use Wise. The fees are usually less than Remitly and Xoom and the exchange rates are usually a few points better. I send money frequently to my GF's BPI account.

DO NOT use a dollar account at your bank as that is subject to exchange rates. In effect, you will get two exchange rates (remittance and your bank) possibly losing money on each.

My wife and I were routinely sending money to her brothers and Sisters in the PH for years. we never used Remitly or Xoom, we went with Western Union instead. The only drawback is that we had to go to a Western Union branch in person every time we needed to send money.

I'm not sure what the fees were but They seemed reasonable especially since we were only doing it once, or maybe twice a month if something unusual happened.

Carl

I find the best all round online money transfer company, also the cheapest, with the best exchange rate is OrbitRemit, but unfortunately at this time they only seem to cater for UK, Australia and New Zealand

Thank you. I will keep that in mind in case I get to have a client that is based in those country.

Inthisfate wrote:

Which one do you use for sending money from the US to PH, is it Remitly or Xoom? What do you think of Wise transfer? Please enlighten me on which one is the best option. My employer is from the US and he was complaining about the fees taken by Paypal which does not do any good for both of us.

Timely Post

Just today my bank in US (Citibank) notify me there is no longer a fee for wire transfers. So I transferred  $50 USD about six hours ago to my BDO account. I'm still waiting for it to show up so I can actually see the exchange rate compared to Wise.

Now six hours later I transfered $450 USD using Wise.  The Wise exchange rate was 50.36 PHP to the Dollar.

$1.60 (ACH) Bank debit fee
$6.22 Wise Fee
_____________________________
Total Cost $7.82 USD using Wise.

Now 10 minutes later the Wise transfer is in my BDO account, still waiting for the Citibank wire transfer.

My wife sent money a couple of days ago by Remitly and got charged USD 3.99.
She sent money again yesterday, no fees. Exchange rate was 49.
About a week ago she sent money by western union, the fees was around USD 11, exchange rate was 48.50

Enzyte Bob wrote:

Now six hours later I transfered $450 USD using Wise. 

The Wise exchange rate was 50.36 PHP to the Dollar.

$1.60 (ACH) Bank debit fee
$6.22 Wise Fee
_____________________________
Total Cost $7.82 USD using Wise.

Now 10 minutes later the Wise transfer is in my BDO account, still waiting for the Citibank wire transfer.

I check the remittance into my BDO account, I sent $450 USD and 22,458.55 php was received in the BDO account. So dividing 22,458.55 by 50.36 (php exchange rate)  $445.96 was actually deposited. The cost of the transfer turned out to be $4.04 USD,

The wired money from Citibank has not been received and I contacted them, they said International Wired will take between 3 and 5 days. Think of all the interest they make on the vigorish on a 3 to 5 day hold on billions of dollars.

Jackson4 wrote:

My wife sent money a couple of days ago by Remitly and got charged USD 3.99.
She sent money again yesterday, no fees. Exchange rate was 49.
About a week ago she sent money by western union, the fees was around USD 11, exchange rate was 48.50

I would say the Western Union is  way too expensive. The Remitly is not bad.

48.5 to 49 is a bit low lately if you are paying a fee on top of that.

Wells Fargo Express Send gave me  49.49. July 18 (Exch rate was 50.36) and 49.36 on July 30 (Exch rate was 50.0)  and then there is a $4 fee on top of that..

Enzyte Bob wrote:

Enzyte Bob wrote:

Now six hours later I transfered $450 USD using Wise. 

The Wise exchange rate was 50.36 PHP to the Dollar.

$1.60 (ACH) Bank debit fee
$6.22 Wise Fee
_____________________________
Total Cost $7.82 USD using Wise.

Now 10 minutes later the Wise transfer is in my BDO account, still waiting for the Citibank wire transfer.

I check the remittance into my BDO account, I sent $450 USD and 22,458.55 php was received in the BDO account. So dividing 22,458.55 by 50.36 (php exchange rate)  $445.96 was actually deposited. The cost of the transfer turned out to be $4.04 USD,

The wired money from Citibank has not been received and I contacted them, they said International Wired will take between 3 and 5 days. Think of all the interest they make on the vigorish on a 3 to 5 day hold on billions of dollars.

Nice analysis Bob. I'm a little confused about the fees though. The $7.82 to send vs the $4.04 on the exchange rate. Did you pay both? How much did the transaction actually cost IN TOTAL, with everything included? $450 or $457.82? If all those fees came out of the $450 and she got 22458, then she got 49.9 net, with an exchange rate of 50.36 so you only lost .46 peso, or roughly 1% on the transaction.  That is outstanding to net 99% of the total transaction amount. If if she got 22458 on a transaction total of $458, then she got a NET of 49.05, losing about 1.3p - about the same as I get with Wells Fargo.

My end of July send on the 30th was $475 plus $4 fee to send = $479. They gave me 49.36 and the exchange rate was 50.00 at the time so they took .64p, plus a $4 fee to send.  What I like to look at is the overall NET received for money given up. She NET  23447p overall, for my $479 total (incl fee), for a net of 48.95p per dollar, including the fee. With an exchange rate of 50.00 at the time that is a 1.05p loss, or 2.%, and the NET was 98% of total transaction amount. Sometimes they take a bit more, seems to always be between 2-2.5% overall.

If you NET 99% overall on the total transaction amount it might be worth switching to Wise.

pnwcyclist wrote:

Nice analysis Bob. I'm a little confused about the fees though. The $7.82 to send vs the $4.04 on the exchange rate. Did you pay both? How much did the transaction actually cost IN TOTAL, with everything included? $450 or $457.82? If all those fees came out of the $450 and she got 22458, then she got 49.9 net, with an exchange rate of 50.36 so you only lost .46 peso, or roughly 1% on the transaction.  That is outstanding to net 99% of the total transaction amount. If if she got 22458 on a transaction total of $458, then she got a NET of 49.05, losing about 1.3p - about the same as I get with Wells Fargo.

My end of July send on the 30th was $475 plus $4 fee to send = $479. They gave me 49.36 and the exchange rate was 50.00 at the time so they took .64p, plus a $4 fee to send.  What I like to look at is the overall NET received for money given up. She NET  23447p overall, for my $479 total (incl fee), for a net of 48.95p per dollar, including the fee. With an exchange rate of 50.00 at the time that is a 1.05p loss, or 2.%, and the NET was 98% of total transaction amount. Sometimes they take a bit more, seems to always be between 2-2.5% overall.

If you NET 99% overall on the total transaction amount it might be worth switching to Wise.

When I initially sent the $450 they summarized the fees at $7.82, but $445.96 was actually received. Whatever amount you wish to send with "Wise" the fee is taken out of the transferred amount.

While writing this response I checked back into my Wise Account and YES the actual fee was $4.04 taken out of the $450 transfer.

Banks are all about FEES, so it doesn't surprise me they have a lower exchange rate, just  fractions of a percent nets them millions of dollars.

Why not open up a Wise account and give it a test run.

A comparison time frame of transferring money with "WISE".

June 16:  Sent $414   Fee $4.61   Exchange rate 48.07
July 21:   Sent $501    Fee $5.13   Exchange rate 50.33
Aug 18:  Sent $450    Fee $4.04   Exchange rate 50.36

We're buying property so I usually max out Wise (most that can be sent at one time is P480K)

Aug 19: Sent $9,580  Fee $66.68  Exchange rate 50.42

I don't know how well Wise compares at smaller amounts but when I researched for the amount I want to transfer, Wise was near the cheapest. I ultimately chose Wise based on reputation, how long they've been in business and fees.

Why not wire transfer money for free using a FDIC approved US bank.  My TCF bank allows me to send free wires up to $50,000 a day from my US account to a Philippino account which is dollar to dollar.  You loose no money the transaction.  And whenever you want to change dollars into pesos I have another peso account in the same bank.  Banks give the best exchange rate from dollars to pesos.  If you are in good terms with the banker or bank president he might give you a very good exchange rate.  The only requirement from the US bank side is a minimum daily balance of $2500.

smith041480 wrote:

Why not wire transfer money for free using a FDIC approved US bank.  My TCF bank allows me to send free wires up to $50,000 a day from my US account to a Philippino account which is dollar to dollar.  You loose no money the transaction.  And whenever you want to change dollars into pesos I have another peso account in the same bank.  Banks give the best exchange rate from dollars to pesos.  If you are in good terms with the banker or bank president he might give you a very good exchange rate.  The only requirement from the US bank side is a minimum daily balance of $2500.

Most FDIC banks charge for wire transfers.

TCF Banks have a lot of branches but they are not a national bank, closer to a regional bank.

The most important factor is the exchange rate bank to bank, international. (1% equals $500 on a $50,000 transfer) so the exchange rate is important.

I have to disagree with you, banks do not give the best exchange rates Dollar to Pesos. I would be interested in the current exchange rate of your TFC Bank.

About sending money to the Philippines got me thinking how I handled it when living in the states.

Again going back to the rate of exchange, I was using Western Union. Western Union had reduced fixed rates sending money to Mexico and the Philippines.

I was sending Dollars to the Philippines, not Pesos. My stepson would pick up the money (Dollars) at Western Union.

The reason for the pickup at Western Union instead of depositing in our Dollar Account at BDO was because of the exchange rate. My stepson would exchange Dollars to Pesos on the black market (my wifes choice of words.)

I'm not sure whether or not I explained myself properly or if you misunderstood me. First of all TCF Bank is only one of many banks that offer free international wire transfers dollar to dollar accounts.
You just have to look for them.  TCF is joining Huntington Bank which is larger and national.  I have a Premier Checking Account which requires a minimum daily savings of $2500.  I can wire transfer money, and it takes usually one day, from my US dollar account to my PNB USD bank account and it's for free.  0$ fees.  Nada.  So how can going through PayPal or Xoom or whatever other method be cheaper?  I can send any amount of 50K or below.  I know many others who send through Xoom or other internet agencies ($15.00 for $3000 USD), etc.  Not only is there an upfront fee, the exchange rate (because you are forced to exchange it into pesos) is not the upper or even middle tier rates used by the banks.  If I want to send my money directly to my PNB pesos account, I get the 2nd tier level through TCF (soon to be TCF Huntington) of exchange which is better than Xoom.  There are 3 tiers that banks/money wire companies utilize so I was told by the VP of the bank. 

Many national banks have the same "free" international transfer of money from USD to either foreign USD accounts or to foreign currency accounts.  If you don't like TCF or Huntington Bank you can use the Chase Bank wire transfer service in which you need to keep a little more than $2500 minimum daily level and can send USD account to your Philippine peso bank account at the "highest/best" daily international bank rate.  What is good about this account is that you can do it while living in the Philippines via the internet.

Why get screwed using PayPal which is not FDIC approved or guaranteed.  PayPal and Xoom and other money transfer companies are all a rip-off.  If you are poor I can see the need to use these services.  I see many people bringing their checks to these cash checking places loosing 1% to 3% of their pay.  I assume most Americans living in the Philippines have social security and possibly a pension as well.  If you send $2000 to your peso account every month and get charged $15 plus a decent at best exchange rate, this adds us to $180 a year on fees  alone and probably hundreds of dollars more lost on so-so exchange rate.  I have no desire to promote these banks.  My only desire is to help Americans living in the Philippines to get the best bang for their US dollars sent to the Philippines via wire transfers.

smith041480 wrote:

I'm not sure whether or not I explained myself properly or if you misunderstood me. First of all TCF Bank is only one of many banks that offer free international wire transfers dollar to dollar accounts.
You just have to look for them.  TCF is joining Huntington Bank which is larger and national.  I have a Premier Checking Account which requires a minimum daily savings of $2500.  I can wire transfer money, and it takes usually one day, from my US dollar account to my PNB USD bank account and it's for free.  0$ fees.  Nada.  So how can going through PayPal or Xoom or whatever other method be cheaper?  I can send any amount of 50K or below.  I know many others who send through Xoom or other internet agencies ($15.00 for $3000 USD), etc.  Not only is there an upfront fee, the exchange rate (because you are forced to exchange it into pesos) is not the upper or even middle tier rates used by the banks.  If I want to send my money directly to my PNB pesos account, I get the 2nd tier level through TCF (soon to be TCF Huntington) of exchange which is better than Xoom.  There are 3 tiers that banks/money wire companies utilize so I was told by the VP of the bank. 

Many national banks have the same "free" international transfer of money from USD to either foreign USD accounts or to foreign currency accounts.  If you don't like TCF or Huntington Bank you can use the Chase Bank wire transfer service in which you need to keep a little more than $2500 minimum daily level and can send USD account to your Philippine peso bank account at the "highest/best" daily international bank rate.  What is good about this account is that you can do it while living in the Philippines via the internet.

Why get screwed using PayPal which is not FDIC approved or guaranteed.  PayPal and Xoom and other money transfer companies are all a rip-off.  If you are poor I can see the need to use these services.  I see many people bringing their checks to these cash checking places loosing 1% to 3% of their pay.  I assume most Americans living in the Philippines have social security and possibly a pension as well.  If you send $2000 to your peso account every month and get charged $15 plus a decent at best exchange rate, this adds us to $180 a year on fees  alone and probably hundreds of dollars more lost on so-so exchange rate.  I have no desire to promote these banks.  My only desire is to help Americans living in the Philippines to get the best bang for their US dollars sent to the Philippines via wire transfers.

There are certain Caveats.

My Bank, Citibank offers "Free" International wire transfers. One Caveat the transfer is from Dollar accounts to a Peso accounts, but not to dollar to dollar accounts. My transfer took two days, the exchange rate was 46.54 PHP. Wise does not allow International transfers from Dollar accounts to Dollar accounts.

People with Citibank Accounts do not have to have $2500 on deposit for their so called "Free International wire transfers.

In Citibank, hidden in the explanation of many pages of the TOS "Terms of Service" : Exchange rate includes commission for conversion service.

Now in comparison I sent money the same day using Citibank and Wise. As mentioned above Citibank took two days at 46.54 PHP per dollar, Wise 10 minutes at 50.36 PHP per dollar.

You mention getting screwed, when using free bank wire transfer, dollar to foreign currency, the recipient is getting screwed.

I would like to know what the exchange rate of TCF/Huntington Banks "Free Wire Transfer" Dollar to Peso is.

I guess my question is why would someone want to send money from the US and be forced to exchange it to PH pesos at less than top tier exchange rate when you can send money from a US Dollar account to your Philippino Dollar account?  And for free?  A Philippino bank account costs only a couple of dollars to open.  Open two of them.  A dollar account and a peso account.   You brought up "fine print" transaction fees.  This should not be fine print.  All banks will tell you about this if one just goes to the bank and asks.   You must ask your branch bank or main bank in the Philippines whether or not they charge a "receipt fee."  My bank branch does not charge any receipt transaction fee and others often charge a miniscule amount.  If you have a dollar to dollar account you just have to wait until the current international exchange rate is in your favor to transfer your dollars to your peso account to get this best rate available.  The banker gives me a very good exchange rate when I decide to change my dollars into pesos.  It usually is less than 0.5%.  For the life of me, if someone has the means to set up an American bank account that offers free international wire transfers for dollar to dollar accounts and/or dollar to peso accounts with top tier exchange rates, why would you not do this?

Regarding your Citibank account:  actually, if you don't have to maintain any minimum money in your Citibank account and can send international wires free, albeit, from USD to foreign currency account for free is not such a bad deal on the surface.  But you get what you pay for which is the third tier exchange rate.  What do you want for free?

Regarding my statement about getting ripped off, it was about those who use Xoom via PayPal and any other $2000 or $3000 for $15 fee plus who knows what kind of exchange rate at the moment or the like.  They are all rip-offs!  Don't be fooled if you think they are giving you this great deal.

All US FDIC-insured banks must follow international and national laws on foreign exchange rates.  There are three tiers of exchange rates.  No more or no less.  However, on the other hand, these fly-by-night agencies and companies that you are referring to are unregulated and can charge anything they want and can decide any exchange rate they desire.  Competition is the only thing that holds them from gouging you more than they can now.  Imagine a business that can transfer money around the world and charge you for it?  Cryptocurrency may someday do away with all of these charges and bank wire transfer fees.  A bank normally charges $40 to $50 for an international wire transfer be it dollar to dollar or dollar to foreign currency.  Some credit unions charge over $100 a transfer.  Believe me I know.  But like I said with minimum money in accounts you can get free transfers.

You mentioned that your money is sent to your account almost instantaneously as a perk.  That is exactly how FDIC-insured banks send USD to peso (foreign currency) banks, as well.  US bank dollar to foreign bank dollar accounts require screening by a government foreign commerce agency in order to catch money-laundering, etc., or to flag possible foreign scammers.  This is a good thing, wouldn't you agree?  Unless you are sending more than $50,000 this process only takes one day at most, usually.  So, if you consider an instantaneous transfer of funds as a major advantage then,  as I previously mentioned,  having an US bank account with minimum $2500 just might not be for you.  I would also say that any American living in the Philippines who needs a few hundred dollars immediately to stay afloat is not, in my opinion,  re-calibrate their budget.  Unfortunately, those are the people that these fly-by-night international wire transfer companies prey on.

To conclude, Chase offers a "no TRANSACTION fee" for a minimum of somewhere between $2500-$4000 in their checking account.  They allow unlimited free international wire transfers from US dollar accounts to foreign currency accounts at the highest tier rate which I am sure is as good as or better then the rates you get from Xoom, etc.  My TCF Huntington bank allows me to send unlimited free dollar to dollar transfer internationally for $0 transaction fee with a $2500 daily minimum account.  This past week I have sent 3  daily very large wire transfers from my dollar to dollar account in the Phils.  No transaction frees, no receipt fees.  I will transfer the money to my peso account every few weeks or couple of months when the currency exchange rate is trending upwards. 

P.S.  TCF Huntington and Chase are only two of the many banks who provide the free wire transfer service exchange rates.

This is the tier system: 

Tier #3 is considered the public exchanging at a local bank. Tier #2 is exchanging currency at a redemption center. Tier #1 is considered as a transaction that goes involves exchanging with the government. The currencies have different values at different Tier levels.

smith041480 wrote:

I guess my question is why would someone want to send money from the US and be forced to exchange it to PH pesos at less than top tier exchange rate when you can send money from a US Dollar account to your Philippino Dollar account?  And for free?  A Philippino bank account costs only a couple of dollars to open.  Open two of them.  A dollar account and a peso account.   You brought up "fine print" transaction fees.  This should not be fine print.  All banks will tell you about this if one just goes to the bank and asks.   You must ask your branch bank or main bank in the Philippines whether or not they charge a "receipt fee."  My bank branch does not charge any receipt transaction fee and others often charge a miniscule amount.  If you have a dollar to dollar account you just have to wait until the current international exchange rate is in your favor to transfer your dollars to your peso account to get this best rate available.  The banker gives me a very good exchange rate when I decide to change my dollars into pesos.  It usually is less than 0.5%.  For the life of me, if someone has the means to set up an American bank account that offers free international wire transfers for dollar to dollar accounts and/or dollar to peso accounts with top tier exchange rates, why would you not do this?

Regarding your Citibank account:  actually, if you don't have to maintain any minimum money in your Citibank account and can send international wires free, albeit, from USD to foreign currency account for free is not such a bad deal on the surface.  But you get what you pay for which is the third tier exchange rate.  What do you want for free?

Regarding my statement about getting ripped off, it was about those who use Xoom via PayPal and any other $2000 or $3000 for $15 fee plus who knows what kind of exchange rate at the moment or the like.  They are all rip-offs!  Don't be fooled if you think they are giving you this great deal.

All US FDIC-insured banks must follow international and national laws on foreign exchange rates.  There are three tiers of exchange rates.  No more or no less.  However, on the other hand, these fly-by-night agencies and companies that you are referring to are unregulated and can charge anything they want and can decide any exchange rate they desire.  Competition is the only thing that holds them from gouging you more than they can now.  Imagine a business that can transfer money around the world and charge you for it?  Cryptocurrency may someday do away with all of these charges and bank wire transfer fees.  A bank normally charges $40 to $50 for an international wire transfer be it dollar to dollar or dollar to foreign currency.  Some credit unions charge over $100 a transfer.  Believe me I know.  But like I said with minimum money in accounts you can get free transfers.

You mentioned that your money is sent to your account almost instantaneously as a perk.  That is exactly how FDIC-insured banks send USD to peso (foreign currency) banks, as well.  US bank dollar to foreign bank dollar accounts require screening by a government foreign commerce agency in order to catch money-laundering, etc., or to flag possible foreign scammers.  This is a good thing, wouldn't you agree?  Unless you are sending more than $50,000 this process only takes one day at most, usually.  So, if you consider an instantaneous transfer of funds as a major advantage then,  as I previously mentioned,  having an US bank account with minimum $2500 just might not be for you.  I would also say that any American living in the Philippines who needs a few hundred dollars immediately to stay afloat is not, in my opinion,  re-calibrate their budget.  Unfortunately, those are the people that these fly-by-night international wire transfer companies prey on.

To conclude, Chase offers a "no TRANSACTION fee" for a minimum of somewhere between $2500-$4000 in their checking account.  They allow unlimited free international wire transfers from US dollar accounts to foreign currency accounts at the highest tier rate which I am sure is as good as or better then the rates you get from Xoom, etc.  My TCF Huntington bank allows me to send unlimited free dollar to dollar transfer internationally for $0 transaction fee with a $2500 daily minimum account.  This past week I have sent 3  daily very large wire transfers from my dollar to dollar account in the Phils.  No transaction frees, no receipt fees.  I will transfer the money to my peso account every few weeks or couple of months when the currency exchange rate is trending upwards. 

P.S.  TCF Huntington and Chase are only two of the many banks who provide the free wire transfer service exchange rates.

To save you a lot of rhetoric what is the current exchange rate of your bank sending dollars from the states to pesos in the Philippines?

https://www.google.com/amp/s/amp.freep. … 7436798002

https://m.youtube.com/watch?v=nwWXr3eH7_c

I have stated several times that I only have a TCF Huntington checking account and send my money to a Philippine bank's dollar account for no transaction fees.  Nada.  Zilch.  I do not have a Chase account which I also clearly stated.  However, I know they offer the top tier exchange rate so if you want to find out what the top tier rate you can google it.  It seems like you are stuck on believing that these internet money transfer companies like Xoom are the best way to transfer money and the facts that I have presented will not change your mind.  That is your prerogative.  Let those that read these posts make their own decision and consider the no transaction fee and top tier exchange rates offered by several major US banks.  I rest my case. :-)

https://www.monito.com/en/wiki/the-best … rom-the-us

I have googled banks that promote no international transfer fees, and those banks require minimum deposit balances usually over $25,000. There are accounts that want between $2500 and $5000, but they are few, and there are other monthly fees associated with those accounts. Basically what they are doing is using your money and investing it and reaping the rewards and allowing the consumer to have a "free" wire transfer. The smarter thing to do is invest that money yourself, you will make a lot more money. Sure you have to pay  a couple bucks in a fee, but it is pennies to what you will make on dividends. And in reality, if you can afford those high dollar accounts you aren't worried about a couple dollar fee anyhow. I know I am going to continue to have a nest egg in my local bank, and continue stuffing my 401k and IRA . Even if I send money twice a month and pay $10 a month or $120 a year in fees, I will gain thousands in dividends. I have been comparing banks and agencies like Xoom, Remit, and Wise for years, and the best bet overall, and its really not that close, is Wise. A bonus is they are continually improving and lowing their fees, with a goal of eventually making it free. Will it ever get there? Doubtful. But a couple bucks sure isn't hurting me now anyways. And I am not going to let a bank take my hard earned money away from me. Banks have stopped long ago caring about consumers. Just like any other business,  they are in it to make money, and allow their stakeholders to make millions, while paying little to no interest in the money you leave in it.

I must disagree with your generalization about banks using your money to reap benefits.  Of course, banks need to make money as well to survive.  Some banks offer much better deals than others regarding international wire transfers.  No one is suggesting that you use the banks that may rip you off just as you wouldn't use a fly-by-night internet company to transfer your money overseas, either.  Like I said TCF Huntington bank has a premier checking account which requires only a minimum $2500 daily minimum fee to transfer free of transaction fees from your US dollar account to a foreign dollar account.  You ask that they are going to reap benefits from your $2500 "dead money?"  I ask you how much money are you going to reap with this $2500 if you invested it instead and paid for transaction fees and exchange rate penalty that is given to Xoom or any other fly-by-night company?  Let's give an example.  So you send $2000 through Xoom via PayPal every month to your Philippines bank account in pesos.  OK.  You pay $15 for transaction fees and you take a hit on the exchange rate penalty that they decide to tack on for each transaction.  So 12 months a year x $15 a transaction is $180.  That doesn't even count the hit you take every month for the exchange rate penalty they tack on.  Let's say that is at minimum 0.8%.  0.8% of $24000 (the money you sent  to your Phils bank during 12 months) is $192.  Your total "minimum" expenditure is $372 to send $24,000 in one year.  It costs you "$0" to send $24000 a year from a Premier TCF Huntington Bank checking account that requires that you maintain $2500 "dead money."   You tell me where you can invest $2500 a year and make $372 in investment gains and/or interest in one year?  hahahahaha.  No way, Jose.  That is almost  profits.  Most likely, you are going to spend that money at the corner bar or on cigarettes, anyways.

So you premise that banks are out to screw you, at least, in this case, is completely disproven.  The fact is that fly-by-night money transfer agencies like Xoom screw you over much more than your local bank.  They take advantage of those poor people who do not have $2500 in order to send money free.

Again, Chase allows free international transfer from US dollar accounts to international local currency accounts (dollar to peso account for Phils) for free as well but with a slightly higher daily account minimum.  Chase allows you to do this from your home computer.  Like I said in previous posts I do not have a Chase account currently as I prefer to send a large amount of money from my US dollar account to my Phils dollar account once a year when I return to the US.

Also, your google search was not extensive as there are other banks that offer this service for similar minimum daily requirements.

P.S.  What I also forgot to mention is that most of these minimum daily balance accounts will allow you to consider money deposited in other others in the same bank.  That means instead of having a minimum daily account balance of $2500 in my TCF Huntington Premier checking account, if I have a Huntington investment account that is invested in mutual funds, or a TCF Huntington savings account or CD's that total $14000, I do not have to have this "dead money" in the checking account.  This is also true with Chase Bank and most likely true with any other bank that offers 0 transaction fees for international wire transfers.  Like I said, the fly-by-night Xoom service and others prey on those without money.  I would assume that most Americans living in the Phils have enough nest egg to take advantage of great deals like this.  But there are many people out there that live and die by these fly-by-night exchange services and to those be my guest :-).  I gave what I think a logical, fact-filled, and detailed account of why one should send their money from the US to the Phils using the banks that I have listed and noted that these are not the only ones out there.  I am through with these back and forth arguments.  I felt compelled to answer this last complaint against using banks to send money because it was based on an erroneous premise.  I am calling it quits on this topic.  Good luck to all.  :-)

smith041480 wrote:

Like I said TCF Huntington bank has a premier checking account which requires only a minimum $2500 daily minimum fee to transfer free of transaction fees from your US dollar account to a foreign dollar account.

I think this is the third time I'm asking you this: What is the exchange rate for international transfers from your Dollar account to PHP?

You say you are sending dollar to dollar accounts free, so where do you spend dollars in the Philippines?

If you are converting your dollars in the Philippines to Pesos, what is the exchange rate?

It seems more like he is a saleman for big banking, maybe specifically for TCF Huntington. How can one look objectively at big banking and say they are out to protect their consumer? You earn .01% interest on your money while they are earning 12% in the stock market. Further they subject you to multiple fees in the name of depositing more of your money in their bank? You must deposit $1500 monthly for us to earn even more interest off or you will pay us $25 for keeping your money? Or if you are poor and overdraft your account, we are going to charge you $39 fee, in the hopes that since you don't make much you will do it again and again and soon owe us hundreds? Kind of like that used car lot that offers to finance anyone, but you will be paying 27% interest.

But just out of curiosity I googled the now infamous TCF Huntington bank and what did I find?A brand new merged bank that is just in the process of being fully set up. In addition to this there is no premiere checking account even offered at the bank, instead they have what is called an asterisk free checking. And what is their fee for international transfers? 3%. They do have a premiere savings account however, yet they still do not show any form of fee free international transfer. But they do pay .02% APR on your money. While they are getting on average 12% off your money. Banks are indeed a business, and like most are out to make a buck, even at the expense of the poor.

I can't say this enough, banks are indeed needed, and it is hard to find the one that will not fee you to death. The bulk of your money however should be going into a 401k or IRA, or both. I have both a 401k through work since they match 60% of 6%, why am I going to give up that free money? On my measly salary that is still about $100 a week I am getting for free, plus I am currently earning almost 9% on my money. I also have a Roth IRA. I try to max this out every year, with make up contributions I can put in 7k per year. Everything I earn off this is tax free money, yet the money is still available, or I can chose not to put in that pay period should an unexpected expense occur. I am earning close to 10% on that. But you want me to believe that it is better to place all your money in a bank for .02% interest, all because of a promise of fee free money transfers? Even if there was a fee free transfer at a bank that required no minimum deposit, it still would not be economically feasible to keep your money in the bank versus stocks, bonds, EFT's, or money markets.

That all being said, one must be careful when using  other companies for wire transfers. They may show low fees, but they cheat you badly on the exchange rate. One peso may not sound like much but sending $2000 at 48 peso per dollar is 96,000 peso you would receive. Sending $2000 at 49 peso per dollar mean you would get 98,000 peso. That is 2,000 peso difference or roughly $40 you would lose.Plus the fee for sending. And this is the point Bob is trying to make. If Mr. Smith actually has fee free transfers, what rate is he getting for his money? Because in the long run, Mr. Smith could be losing big time.

Back in 2006 I was using Western Union, but it was very expensive at that time. I discovered Xoom and saved a lot of money and I've been using Xoom for years without an issue, until lately. Now all of a sudden Xoom wants my tax return or pay slip. I don't have a pay slip since I'm retired and I sent them my tax return, all 40 plus pages, but they are still asking for a pay slip or tax return. I'm the second level of Xoom, my wife is on the first level and she can remit to herself any time?

I have used World Remit but I can't use it in the Philippines because Wells Fargo wants to verify the use of the card via my old phone number which isn't working. Remitly works for me, quickly and without any hassle. We are building a bungalow for the in laws so I sent a grand to myself yesterday and again today using the app on my phone. It uses face recognition and no pop ups asking for bank verification. I vote for Remitly.

When we bought the property 12 years ago Tatay opened an account with PNB and I wired the money to that account. Worked great but I can't do that now that I'm in the Philippines. I recently bought a new SUV by wiring the money directly to the Tacloban Toyota account using Fidelity. I had to make sure I had plenty of Skype minutes on the phone and call in the transfer. There was no charge and they only do dollars to the Philippines so the exchange rate depends on the bank. I transferred an estimated amount and paid the balance in cash.

The crew just demolished the in laws old house and are breaking ground for the column footers. So far I've paid wages and material using Remitly and Jovy using Xoom. I did a EFT from Wells Fargo to Fidelity a couple weeks ago and will soon call Fidelity and wire a million or so to my brother in law's account and that should just about do it. I don't want to use  my untaxed Fidelity IRA for obvious reasons so I have another account for wire transfers which I fund with a Wells Fargo EFT.

I used to use Xoom all the time as well. I know part of the reason they ask for income verification based on the amount you are going to send. The higher level you are the more money you can send. I don't know if this is a federal requirement or not, but once everything clears your sending limit goes up dramatically.

I haven't looked at my Principal or Charles Schwab accounts to see if I will eventually be able to send fee free out of my 401k or IRA accounts. It isn't something I am overly concerned about because the fees to use Wise are minimal. But I am definitely going to check, why not save a few bucks if I can. Of course I have 6 years before I reach 59 1/2 so the rules may change by then anyhow.

I would take a good hard look at Wise and consider trying them out. Their fees seem to be lower, and you get a much better exchange rate with them than you do with any of the others. Second place to me is Xoom. The only thing Xoom has over Wise is the speed of transfer. Xoom is almost instantaneous, where Wise can take a couple hours. I have even had one transfer, started on a Friday night, not clear through until late Monday. So if you need the money ASAP and want to sacrifice a few dollars for getting the money almost guaranteed right away, use Xoom. If you can afford to hold off a day or two just in case there is a delay, use Wise.

I have spent a lot of time comparing these companies, and these companies versus banks. Western Union and banks almost always have the highest fees, and you don't get any better exchange rate than you do on Wise. I would love to find a bank that gave me the best of all worlds, but they are all just a business in the end, and they are out to just make money.

I started a Wise account but looks like they don't do cash pickups. I don't have a Philippine bank account but it is something I will consider when sending to a relatives account.

I've used Xoom for 14 years and have a tier 2 account but I can no longer send money using Xoom because they ask for a pay slip or tax return. I've sent them my tax return and they still ask for pay slip or tax return so Xoom is no longer an option.

Remitly is as instant as it gets with no transfer fee on a $1,000 remittance. Yesterday's rate was 48.36, probably not the best but yesterday was payday for 11 workers and if not for Remitly I don't know what I would have done.

EXCELLENT post dadof3at1ce!!! Thank You ~

My Bank if America  has transfers in a foreign currency at no charge but it takes 4 to 5 days, I use Xoom sometimes it transfers in a few minutes to BDO I have used it for over 10 years, if I send to my wife there is no fee, they make money on the rate of exchange

I am curious what type of account you have at Bank of America? I always check, not afraid of making a switch if it benefits me. This is what I find on their website:

Bank of America Advantage Relationship Banking, Bank of America Advantage® with Tiered
Interest Checking and Bank of America Advantage® Regular Checking accounts plus
Preferred Rewards customers qualify for a waiver of our standard wire fee for an incoming
domestic wire transfer. The standard wire fee for incoming international wire transfers is
waived for Preferred Rewards (Platinum and Platinum Honors tiers only) customers.
• We may change the fees for wire transfers at any time. Visit a financial center or call us at
the number on your statement for current fees.
• For international wire transfers, in addition to our standard wire transfer fee, other fees
may also apply, including those charged by the recipient's financial institution, foreign
taxes, and other fees that are part of the wire transfer process. Markups associated with
the currency conversion are included in the Bank of America exchange rate.
• When deciding between sending in foreign currency or U.S. Dollars, you should consider
factors that impact the total cost to send or the amount available after transfer, such as
exchange rates and other fees

Another posted the same thing about TFC Huntington, but I could not find anything on their web site as well. Is it possible you are grandfathered in for some program no longer available? Or are you in a higher tier than shows on the web site? I couldn't afford to start an account if it is a high tier account, nor would I want to tie my money up in it either. But I understand if you are well enough off to afford a higher tier money isn't something you worry about anyhow.

I looked into Wise to see about bank alternatives and your right, there isn't much of an option. There are two different e-wallet applications you can use, but I know absolutely nothing about either of them. I always deposit right into a BDO account co-owned by my wife and her sister. Her sister tells us how much she is going to take out to pay our bills there and other misc things they need. We also give her a small salary for taking care of our place in Bacong and paying our bills for us. I just make sure there is enough in  there. Soon we are going to start building the account there so that when we retire we have a small nest egg there. I hesitate doing to much because not much of deposits are insured, but at the same time I want enough there that if something happens to me, my wife doesn't have to worry about anything either. She is clueless when it comes to computers and relies solely on my to make sure everything is taken care of.

I would take a look at the exchange rate you are getting too. Are they giving you free transfers but at a lower rate? If so you might want to do the math. Good  luck and let me know. If I can switch I will!

dadof3at1ce wrote:

I

<snip>I always deposit right into a BDO account co-owned by my wife and her sister.

<snip>Soon we are going to start building the account there so that when we retire we have a small    nest egg there.

<SNIP>I hesitate doing to much because not much of deposits are insured, but at the same time I want enough there that if something happens to me, my wife doesn't have to worry about anything either.

I transfer money from CitiBank using Wise to a BDO account as needed for monthly expenses.

Instead of building up an account for an emergency in the Philippines, keep your money in your present stateside account, it's safer.

If an emergency should happen in excess of your account in the Philippines, you can always put it on a charge card (foreign transaction fee 3% of charge). Then pay it off in full without any extra charge (interest).

This is something I have worked hard at, and none of my credit cards have any foreign transaction fees. I have a Citibank card, HSBC card, Capital One card, Discover card, and USAA card. The total limits are just over $30,000. Every so often I charge something on them but then pay them right off to avoid interest charges but yet keeps the cards active. I am curious to see when I retire how the credit card companies handle the switch of countries from USA to Philippines.

Right now we keep on average 50,000 peso in our BDO account. Enough that if an emergency comes up it is generally enough to cover and easily replaceable. The PDIC limit is 500,000 peso, or roughly 10,000 USD. My thought was to get the account close to this limit them use Wise to refill it monthly, and use credit cards for most transactions, paying them off with money in our US based account. What is your experience in keeping money in BDO?

dadof3at1ce wrote:

This is something I have worked hard at, and none of my credit cards have any foreign transaction fees. I have a Citibank card, HSBC card, Capital One card, Discover card, and USAA card. The total limits are just over $30,000. Every so often I charge something on them but then pay them right off to avoid interest charges but yet keeps the cards active. I am curious to see when I retire how the credit card companies handle the switch of countries from USA to Philippines.

Right now we keep on average 50,000 peso in our BDO account. Enough that if an emergency comes up it is generally enough to cover and easily replaceable. The PDIC limit is 500,000 peso, or roughly 10,000 USD. My thought was to get the account close to this limit them use Wise to refill it monthly, and use credit cards for most transactions, paying them off with money in our US based account. What is your experience in keeping money in BDO?

I imagine your credit cards statements are paperless, if not change them to paperless. Then select a mail forwarder/re-mailer and use that address for your own and concerning your cards. Notify the card companies that you plan on using your cards in the Philippines, but I would not tell them you are moving there. I told them six months to a year, I have been using them in the Philippines for three years now without problems.

It's important to keep the cards active, I had two cards cancelled from inactivity. Now I have autopay set up for my re-mailer, web hosting (my web pages), insurance, Ooma and netflix, keeping my seldom used cards active.

I have $1000 in a dollar account (BDO), that I never touch. Depending on the time of the month my BDO peso account fluctuates between 1,000 php to 50,000 php. The BDO peso account is used for purchases (shopping), Internet/Cable TV, Meralco (Electric company) and household money (10,000 php).

I've never had a problem using BDO, they have branches almost on every street corner, at least it seems that way. I use their online autopay for cable, electric and "Grab" it is like Uber/Lyft,  you have to prepay online for your ride.

I don't own a car, living in Manila I would never attempt to drive. I find Grab reasonable, clean late model cars and drivers. The taxi cabs are older, dirtier but cheaper.

One thing I find useful is having "Ooma Telo" (VOIP) in the states, I transferred my landline number to it. Once you set it up with your stateside number it will work in the Philippines. The only cost after you buy the unit (it cost about $100), is the phone taxes, charged on your credit card. If you don't have a landline, Ooma can assign up to two phone numbers for you, area code of your choice. Believe me, from time to time you're going to need to make calls to and from the states.