As a new MBA student you will need to transfer a lot of money to the country of your new MBA. This article will try to clarify what are the option to transfer money overseas and the pros and cons of each method.
Spoiler alert!!! we recommend to use online vendors and TransferWise in particular.
The methods in this article:
- Online vendors – TransferWise, OFX etc.
- Bank transfer
- Cash – including physical transferring options (TransUnion or MoneyGram)
This option is usually the cheapest, fastest and most convenient. Yet, it is highly important which vendor you use.
Our pick for this service is TransferWise because of our personal experience transfering money with them, their lowest fees, exchange rates and compatibility with many currencies.
Below is the list of certain vendors that we analyzed and what we think are the Pros and Cons of each one of them.
Pros: Transfer money fast with low, clear and transparent pricing structure
Cons: Not supporting all currencies
Pros: Cheapest option that we found for large transfers
Cons: Takes 1-2 business days for money to transfer
Pros: Trusted network and easy to use phone App
Cons: Pricy comparing to competitors
Pros: Trusted network and transfer money fast
Cons: Low max daily and monthly limits and high conversion rates
Bank is probably one of the most secured and pricy ways on this article. There are so many fees involve (high conversion rate, transfer money fee and receiving money fee) that we feel this option is the least good. Yet, if you still want to choose this option, you should know that you can negotiate with the bank every fee that they are asking and few lucky students reported us that they manage to reduce all the fees beside slight higher conversion rate.
Cash is a good option that have few major issues. The first is that you cannot move huge amount of cash from country to country. For instance, entering to the US you can bring with you a maximum of 10,000 USD which is not enough for tuition or living. Few other cons are that you still need to pay exchange rate fees where you change money in your country and on top of it you need to physically walk with a lot of cash, which can be dangerous or unpleasant. Thus, unless you have the cash handy and you feel comfortable walking with it, we won’t recommend this method to transfer money for your MBA.
Other options that solve few of the cash drawbacks are WesternUnion or MoneyGram – those companies work in many locations (more than 800K) and you can come to a location near your house and just transfer the money to your new location. Again, the honey doesn’t come without the sting of the bee. These companies fees and rates are pretty high (approximately 3%) and the transfer amount are capped at $7,500. Thus, if you want the in-person experience we recommend those methods, otherwise just don’t.
You have many options to transfer money for your MBA. We highly recommend to use TransferWire or any other online vendor as it will be the most convenient, fast and cheapest way. If you find any other methods to transfer money that was useful for you please let us know.