Sending money overseas doesn’t always have to leave a dent in your wallet. Many people end up spending more than they should simply because they lack awareness of better options. You may be helping your parents back home, covering your kids' university fees or handling payments for a side hustle. Whatever may be the reason, how you send money matters more than you think. The trick? A few smart moves. For instance, selecting the right transfer service and timing can stretch your budget further than you would expect.

Here are five ways you can save more on international money transfers:

Choose authorised dealers for smarter money transfers

The Reserve Bank of India (RBI) permits authorised dealer category-II companies (Wall Street Forex, Prithvi Exchange, Zenith Forex) to provide limited foreign exchange services such as student payments, travel forex, and outward remittances.

These dealers offer industry-leading exchange rates, reduced fees, and low-cost, transparent pricing, compared to traditional banks, making them more economical. “One of the most important benefits is that they do not have hidden markups that are usually charged on exchange rates by banks. These make them particularly useful for personal remittances, tuition fees, or small business transfers. To obtain the best value, always cross-check the precise exchange rate and charges before finalising any transaction,” says Pavan Kavad, managing director of Prithvi Exchange (India) Limited.

2. Get the best deal by comparing rates

Before remitting money abroad, it is always best to shop around and compare rates among providers to determine the most efficient and cost-saving option. With exchange rates and fees changing every day, it pays to shop around. This strategy is especially beneficial for single large or one-off transfers where slight differences in rates can make a huge difference in the amount received. Avoid deals that advertise "zero-fee" transfers; usually the actual fee lies in a poor exchange rate.

3. Reduce expenses by avoiding transfers using credit cards

One should stay away from credit cards when making international money transfers as they carry very high interest rates, cash advance charges, and high currency conversion fees. Bank transfers or debit cards are usually much cheaper in most instances and will enable you to avoid the unnecessary transactional expenses and possible debt. If a credit card is unavoidable, ensure that you utilise one that doesn't incur foreign transaction fees to keep the added costs to a minimum.

“Usually, credit cards have a 4% markup fee. If you use forex cards instead of using banking channels for forex remittance, the forex fee and other hidden charges will be saved. For instance, if you're sending ₹50,000 abroad, you could end up paying ₹3,500-4,000 in extra fees. Forex cards or bank transfers are usually way cheaper than credit cards,” Kavad explains.

4. Transfer more frequently in bigger amounts to get more value 

Transferring more in larger amounts is a more intelligent and cost-saving method to transfer money abroad. “Providers often have a fixed rate per transaction. So, grouping more frequent but small transfers into fewer but larger ones saves overall charges on a cumulative basis and reduces any loss from exchange rates,” says Kavad. This may be practical for students, freelancers, or families who send or receive recurrently. “If you're planning to transfer a substantial amount, look for providers that offer bulk-friendly rates to maximise your savings,” he adds.

5. Time your transfers strategically to avoid poor exchange rates

Currency exchange rates fluctuate daily, sometimes even hourly. To get the best value, avoid transferring money during periods of high volatility or when the rate is unfavourable. Monitor the market or arrange rate alerts with your supplier to keep track of when your preferred currency appreciates. Forward-planning and exchanging money when the rate is favourable can make all the difference, particularly on larger sums. Avoid urgent or last-minute transfers when you might have to compromise on rates.