Top 5 Ways to Save on Remittance Fees

Introduction

If you regularly send money from Europe to India, remittance fees can add up to thousands of euros per year. The good news? With the right strategies, you can significantly reduce these costs without compromising on security or speed. Here are five proven ways to keep more of your money where it belongs—with your loved ones.

1. Compare Real Costs, Not Just Advertised Rates

The Problem: Many people choose a service based on advertised rates or "zero fees" without calculating the total cost. This is the biggest mistake in international transfers.

The Solution: Always calculate the real cost using this method:

• Start with the amount you want your recipient to receive

• Check how much you need to send with each service

• The difference is the true cost

Example: You want to send €1,000 to India:

• Service A: "Zero fees!" but offers 1 EUR = 84 INR = ₹84,000 received

• Service B: €5 fee with 1 EUR = 87.5 INR = ₹87,000 received

• Service B saves you ₹3,000 despite having a fee

Action Steps:

• Use comparison websites that show total cost

• Don't be fooled by "zero fees" marketing

• Focus on the amount your recipient actually receives

• Check independent reviews and ratings

Potential Savings: 2-5% per transfer (€20-€50 on a €1,000 transfer)

2. Choose the Right Payment Method

The Problem: How you fund your transfer significantly impacts the cost. Credit cards often carry hefty fees that can erode your savings.

The Solution: Payment methods ranked by cost (cheapest to most expensive):

Bank Transfer

• Usually free or minimal cost

• Takes 1-3 business days to process

• Best for planned, non-urgent transfers

Debit Card

• Instant processing

• Small or no additional fees (0-1%)

• Good balance of speed and cost

Credit Card

• Instant processing

• Often adds 2-3% fee

• Only use for urgent transfers

Digital Wallets

• Varies by service

• Check individual fee structures

• May offer promotional rates

Example: Sending €1,000 to India:

• Bank transfer: €0 extra = Total €1,000

• Debit card: €10 extra = Total €1,010

• Credit card: €30 extra = Total €1,030

Potential Savings: 2-3% per transfer (€20-€30 on a €1,000 transfer)

3. Time Your Transfers Strategically

The Problem: Exchange rates fluctuate constantly. Sending money without watching the market can cost you significantly.

The Solution:

Set Rate Alerts Most services allow you to set target rates. When EUR strengthens against INR, you'll get more rupees for your euros.

Monitor Trends

• Exchange rates are typically more stable mid-week

• Monday mornings and Friday afternoons can be volatile

• Major economic announcements affect rates

Use Rate Lock Features Some services let you lock in a favorable rate for 24-48 hours while you arrange payment.

Consider Forward Contracts For large transfers, some services offer forward contracts that lock in today's rate for a future transfer (up to 12 months).

Avoid Peak Times

• End of month and quarter can see rate volatility

• Major holidays affect liquidity

• Political or economic announcements cause fluctuations

Example: If you wait for a 1% better rate on a €10,000 annual remittance:

• Immediate transfer: 1 EUR = 87 INR = ₹8,70,000

• After 1% improvement: 1 EUR = 87.87 INR = ₹8,78,700

• Savings: ₹8,700

Potential Savings: 0.5-2% by timing (€50-€200 on €10,000 annually)

4. Send Larger Amounts Less Frequently

The Problem: Sending small amounts frequently means paying fees multiple times and potentially getting worse rates.

The Solution:

Consolidate Transfers Instead of: 4 transfers of €250 = 4 × €5 fees = €20 in fees Do this: 1 transfer of €1,000 = 1 × €5 fee = €5 in fees

Benefits of Larger Transfers:

• Pay fixed fees only once

• May qualify for better rates (volume discounts)

• Less time spent on transfers

• Fewer currency conversion instances

Volume-Based Pricing Many services offer tiered pricing:

• €0-€500: Standard rate

• €500-€2,000: 0.5% better rate

• €2,000+: 1% better rate

Important Considerations:

• Only consolidate if you can comfortably send larger amounts

• Ensure recipient can manage larger sums

• Consider emergency fund availability

• Check if your service has monthly limits

Example: Monthly support of €1,000:

• Weekly €250 transfers: 4 × €5 = €20/month in fees

• Monthly €1,000 transfer: 1 × €5 = €5/month in fees

• Annual savings: €180

Potential Savings: €100-€300 annually depending on transfer frequency

5. Use Services with Transparent Pricing

The Problem: Complex fee structures and hidden charges can significantly increase your costs without you realizing it.

The Solution:

What Transparent Pricing Looks Like:

• Single, clear exchange rate shown upfront

• One transfer fee (not multiple fees)

• Exact recipient amount displayed before confirming

• No intermediary bank charges

• No receiving fees

• No surprise deductions

Red Flags to Avoid:

• "Processing fees" added at checkout

• "Correspondent bank charges may apply"

• Different rates for different payment methods (hidden markup)

• Vague "the rate may change" disclaimers

• Fees not disclosed until final confirmation

Questions to Ask:

1. "What is the total amount my recipient will receive?"

2. "Are there any fees beyond what's shown?"

3. "Can the amount change after I confirm?"

4. "Does the recipient's bank charge any fees?"

Loyalty Programs Some services offer:

• Reduced fees for frequent users

• Better rates after first transfer

• Referral bonuses

• Cashback on transfers

Example: Hidden fee scenario:

• Advertised: €3 transfer fee, 1 EUR = 87 INR

• Reality: €3 transfer + €7 intermediary fee + ₹250 receiving charge

• Total cost: Much higher than expected

Transparent service:

• €5 transfer fee, 1 EUR = 87.5 INR

• Total: Exactly as shown, no surprises

• Better overall value

Potential Savings: 1-3% by avoiding hidden fees (€10-€30 per €1,000)

Bonus Tips for Maximum Savings

Verify Recipient Details Failed transfers due to incorrect details often incur fees for return and retry.

Take Advantage of Promotions

• First transfer often free or discounted

• Seasonal offers (Diwali, New Year)

• Referral programs for you and friends

Consider Transfer Purpose Some services offer better rates for specific purposes like education fees or property purchases.

Stay Informed

• Subscribe to rate alerts

• Follow economic news affecting EUR/INR

• Join expat communities for tips and service recommendations

Keep Records Track your transfers to:

• Identify your average cost per transaction

• Compare services accurately over time

• Spot opportunities for improvement

• Prepare tax documentation if needed

Calculating Your Annual Savings

Let's put it all together. If you send €1,000/month (€12,000/year):

Without optimization:

• Poor exchange rate: 3% loss = €360

• Credit card fees: 2.5% = €300

• Weekly small transfers: Extra fees = €180

• Hidden charges: 1% = €120

• Total annual cost: €960

With optimization:

• Good exchange rate: 0.5% loss = €60

• Bank transfer payment: 0% = €0

• Monthly consolidated transfers: Standard fees = €60

• Transparent service: 0% hidden = €0

• Total annual cost: €120

Total annual savings: €840

The SimplyRemit Advantage

SimplyRemit helps you save through:

• Transparent Pricing: See exactly what you pay and what your recipient gets

• Competitive Rates: Exchange rates close to mid-market rates

• Low Fees: Simple, straightforward fee structure

• Rate Alerts: Get notified when rates hit your target

• Flexible Payments: Multiple payment options to suit your needs

• No Hidden Charges: What you see is what you pay

Conclusion

Saving on remittance fees doesn't require complex strategies or risky shortcuts. By comparing real costs, choosing the right payment method, timing your transfers wisely, consolidating when possible, and using transparent services, you can save hundreds of euros every year. Your hard-earned money should reach your loved ones in India, not get lost in excessive fees and poor exchange rates.

Start implementing these strategies today, and watch your savings grow with every transfer you make.