When you want to send money to your loved ones, business partner, or anyone you desire, you might get confused when choosing between bank transfer or wire transfer. You might be wondering which service is cheaper, which one is sending money faster, which one is safer to send big amounts of money. Otherwise, you might simply have no idea if there is any difference between bank transfer and wire transfer.
Confused no more! Here, Transfer will explain the difference between bank transfer and wire transfer. Let’s read the explanation below!
Definition of Bank Transfer
Before getting to know the difference between bank transfer and wire transfer let’s know the definition of bank transfer.
A bank transfer is a general term to describe the act of sending money from one bank account to another, whether domestically or internationally. Transferring money from your bank account is typically faster, cheaper, easier, and safer than withdrawing and paying in cash.
Domestic bank transfers are defined as money sent from one local bank account to another within a domestic communications network. Domestic bank transfers are relatively cheap to send, and might even be free in some cases.
On the other hand, sending money via international bank transfers can be quite expensive. This is because when you transfer money abroad with a bank, you will be charged a fee (known as an exchange rate margin) to convert your local currency into another country’s currency. Besides, your bank may charge you a set of regular fixed costs, commission fees, and other bank fees.
Definition of Wire Transfer
Wire transfer is an electronic funds transfer (ETF) that occurs between banks and financial institutions.
There is no physical money transmission with a wire transfer. Instead, your bank will confirm that you have sufficient money for the transfer and transmit information to your recipient’s bank through the SWIFT system, telling them to credit their account with the money.
The Differences Between Bank Transfer and Wire Transfer
Both wire transfers and bank transfers are ways to transfer money from one account to another. To make it easier to understand below is the table about the differences between bank transfer and wire transfer.
|Differences||Bank Transfer||Wire Transfer|
|Transfer Fee||10-15% of the amount of money||Vary, depends on the providers but usually cheaper than the bank transfer|
|Delivery Speed||Take up to 4-5 business days||Within 1-5 days|
|Safety||Considered safer||Safe but sometimes more vulnerable to scams|
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