Wire transfer is basically used for transferring money either domestically or internationally. A transfer fee in Canada is applicable on the money transferred electronically or by wire. The charges differ among banks, and the associated fees can be relatively high.
It is a secure way to send your money without the dangers of theft or getting looted. Thus, it makes them quite expensive. Also, it easily sends your money to your acquaintances wherever they are.
Wire Transfer Fees
The wire transfer fee is the cost taken for sending or receiving the payment through a wire transfer. The wire transfer not only makes a secure electronic transfer of funds but also there is no need to exchange cash making it more convenient. Wire transfers enable the swift transfer of funds, whether within a country or across borders.
The fees vary on the basis of whether the customer is a sender or a receiver. Also, the fees vary for domestic and international payments wired to each other. International payments are made by a few banks; hence, they are quite expensive, whereas domestic payments are comparatively cheaper.
International payments are also expensive because of the complexity involved in wiring the money to a different country.
● Secure way to send money.
● It is possible to establish and plan it in advance.
● Large amounts can be transferred.
● High fees.
● Takes up to five days.
● Can’t be cancelled once sent.
Reasons For Wire Transfer Fees
Wire transfer fees are high because they provide a higher transaction limit, making it easy for users to transfer huge amounts safely and securely. Other payment methods provide low transaction limit making wired transfer only option for big companies who trade domestically or internationally.
Wire transfer has a global network, the banks involved use the SWIFT method which is the involvement of other banks in their network. Sometimes, there are intermediator banks involved thus, they charge other banks for the transfer. Also, when different currencies are traded charges might differ from country to country and the network used for transferring funds.
Fees For Canadian Wire Transfer
1. RBC Transfer Fees
The Royal Bank of Canada wire transfer fees under two categories are –
● Incoming, that is, if the customer is a receive.
● Outgoing, that is, if the person is a sender.
Following are the fees of the Royal Bank of Canada for incoming payments –
● If the transfer is from the Royal Bank of Canada situated in Canada, then no fees are charged.
● If the transfer is from any other financial bank all over the world having a transfer payment of $50.00 CAD/USD, then also no fees are charged.
● If the transfer is from any other financial bank worldwide and the money wired is over $50.00 CAD/U.S.- $17.00 CAD/USD, which also depends upon the currency wired, then the fees is charged of $17.00 CAD or $17.00 USD.
Now, if the transfer is outgoing, The Royal Bank of Canada charges the following fees –
● If the transfer is within Canada or to other countries, including many currencies, then a fees of $45.00 CAD/ $45.00 USD is charged.
● If, by any case or mishap, the wired money is not delivered as instructed then no money or fees are charged for the transferred fund.
● If the transfer is successfully delivered to the person then a fees starting from $25.00 CAD with GST is charged.
2. TD Transfer Fees
The transfer fees of TD Canada Trust for incoming funds, both domestic and international, is $15.00 CAD Whereas, the transfer fees for outgoing amounts for TD Canada Trust is $30.00 CAD.
3. CIBC Transfer Fees
The CIBC charges a fees of $15.00 per wire amount of any value for their incoming transfer funds.
But the charges for outgoing payments vary largely; one can read below the charges for outgoing payments.
● If the amount is under $10,000, then the charge or fees is $30 per transaction made by the user.
● If the amount is between $10,001 and $50,000, then a fees of $50 per transaction is charged.
● If the transfer amount exceeds $50,000 then the transfer fee is $80 per transaction.
4. Scotiabank Transfer Fees
● The Scotiabank transfer fees differ; if the person makes an online transfer the fees charged are different, and if it is done through a branch the fees charged are different.
● Incoming wire fees to Scotiabank are identified as pension payments which cost $1.50 per transfer.
● Any other incoming wire transfer fees is charged as $15.00 CAD or USD per transfer. The fees are charged according to the currency of the account as well.
5. BMO Transfer Fees
The BMO also follows certain rules for charging the wire transfer fees. For every incoming payment, the BMO transfer is $14.00 CAD or USD per transaction.
For outgoing payments, customers have to pay 0.2% of the wired amount as fees, which have a range of a minimum of $15.00 to a maximum $125 charge, a $10 communication fee is also charged.
From 5th July,2023, incoming wire payments are now charged $16.00 CAD or USD and outgoing wires cost $40 with a $1 extra charge for the communication fee.
Fees are higher for global money transfers made by BMO, which has a flat fee of $5 per transaction.
The fees also vary if the transfer fund is made to BMO in United States or the customer has any BMO bank plans as follows –
● Premium Plan
● Platinum Plan
● Bank at Work
● Performance Plan, which is under the New Start Program
Ways To Avoid Wire Transfer Fees
It is difficult to avoid wire transfer fees totally but one can always minimize the cost significantly by following some tricks as mentioned below –
● You can find banks which give offers to waive transfer fees to its customers.
● One can transact online rather than through a bank branch which costs less transfer fees.
● You also have the option to utilize an alternative method for transferring funds, like opting for an independent money transfer service such as Wise.
● People have the option to utilize peer-to-peer payment platforms for sending and receiving funds, including services like KOHO, PayPal, and WealthSimple Cash.
Alternatives To Wires Transfer
1. EFT Vs Wire Transfer
An electronic fund transfer (EFT) is used in Canada only when you want to transfer money online from one bank to another alternate bank of yours at a different financial bank. Wire transfers are used to transfer to companies or individuals internationally and domestically.
2. Interac E-Transfer Vs Wire Transfer
This is also a form of e-transfer and can be used to send money all over Canada. They are commonly used for transferring money and are preferred more than wire transfer because of their convenience. Only the customer needs a person’s email address and phone number.
Depending upon the type of bank account you have, it may even be free to do Interac e-transfers. However, domestic wire transfers are more convenient if the amount of money transferred is huge. Also, Interac e-transfers have daily, monthly, and weekly limits for transfer.
3. Direct Deposit Vs Wire Transfer
Direct deposit is the method of transferring money between companies and individuals. They are used by companies to submit paychecks for their employees directly into their bank accounts. Whereas money can be transferred only between individuals using the wire transfer.
The wire transfer fees in Canada differ across major banks such as RBC, TD, CIBC, Scotiabank, and BMO. It’s crucial to compare these fees to make informed financial decisions.