Needs advice about wiring money to the Philippines

[milimelo 4,481]

Moving to region specific forum - not K-1 related.

[David & Kezia 25]

Here's what I've been doing and it's how I've been sending and receiving money for the past years.

Open an account with Banco de Oro in the Philippines and make it a dollar account. Then click this link and register for a Xoom account. Remittance via Xoom has always been the cheapest and fastest way for me to send and receive money all over the world, especially in the Philippines.

Right now, the minimum charge it's at $5.99 if your recipient will receive it in pesos, but as most remittance services, the exchange rate is not good although the exchange rate is still better here than with Paypal, WU and other remittance services. However, to maximize the money that your beneficiary will receive, especially if you are sending a higher amount, it is better to go for the minimum rate of $7.99 to have them receive it in dolllars. The additional $2 you added for the remittance fee is small compared to what more they will be getting if they receive it in dollars and have them exchange it for pesos at Banco de Oro (which usually has the highest dollar to peso exchange rate in the Philippines). Another benefit is if they have a dollar account with BDO, they can receive it at their dollar account right away and maybe even withdraw that money from anywhere else in the world with their ATM (although of course there will be other charges and exchange rates if they will not withdraw in dollars).

Allowing direct deposit with a bank account with any bank all over the Philippines (pesos or dollar) is a big convenience offered by Xoom, as they don't have to show up at a bank anymore to show their IDs, etc., and after the transfer has been completed, they can just withdraw the money at any ATM all over the country. If they don't have a bank account, they can also just pick it up at any bank, pawnshop and other remittance partners all over the country. Imagine all the Cebuana's and MLhullier's all over the country and even in the remote places where they don't have a bank or internet, and you can see how convenient it is for your recipient to pick-up their money.

I would also share one more thing with you that most people don't know. After registration, you can have your FIRST remittance FREE of charge. After entering the details of your beneficiary and your own information, at the next page where you review your transaction before confirmation, you will have an option to enter a COUPON CODE at the bottom. Type in "LIBRE" and then click Apply, so that there will be no charge for your first remittance.

I hope that everyone will find the above information useful.

:-)

Kezia

[TeapotGirl 66]

Here's what I've been doing and it's how I've been sending and receiving money for the past years. ....Kezia

is the transaction fee dependent on the amount you'll send?

Edited November 17, 2011 by teapotgurl1983

[David & Kezia 25]

is the transaction fee dependent on the amount you'll send?

It's different, but it's still so much cheaper than elsewhere. Some of my transactions are $3K and it's still the cheapest there. Just check it out for yourself to see the different rates.

[David & Kezia 25]

Everyone, when you are offering these advices and rates, please consider not only the remittance fees, but also the exchange rates and the fee charged by the accepting bank. People often forget the latter.

Keep in mind that many remittance services offer low remittance fees, but they will get back on you at the low exchange rates and you will feel the big difference when you are sending large amounts. Paypal so far has the lowest exchange rate that I've experienced, and they take the longest to process.

All ATMs are charged too, so if you bring a US ATM to the Philippines and make a withdrawal there, you are charged both for international transaction fee (by the local bank ATM and by your own bank), and most of the time you also get charged unknowingly because of the bad exchange rates (if you withdraw in a different currency). It's the same for the other way, and in fact, I have a USD account from BDO and I have the ATM here, and when I withdraw from an ATM here, I get charged between $2.50-$7.00 by the US ATM, and then another $5.00 from BDO later. Fortunately, the account is in USD, because if it is in pesos, I'd also be losing in the exchange rate which is usually 5-15 pesos higher.

Also, Philippine banks taxes all incoming remittances (my last one was around $20), just like Wells Fargo and other US banks if you are doing it the other way.

Nasubukan ko na halos lahat 'yan, including many banks in the Phils and here in the US... mixed and matched. In the end, they still get more money from you, one way or another.

Xoom may not always be great, but in my experience, they've been the fastest, most convenient, and cheapest for me.

Edited November 18, 2011 by David & Kezia

[TeapotGirl 66]

It's different, but it's still so much cheaper than elsewhere. Some of my transactions are $3K and it's still the cheapest there. Just check it out for yourself to see the different rates.

Wells Fargo is so far the cheapest. Can send money up to 3k and it's still $5 transaction fee. Too bad the nearest Wells Fargo from my fiance is in Indiana which is 8hr roundtrip. He was told that he just have to come there ONCE to sign up the paper.

[David & Kezia 25]

Wells Fargo is so far the cheapest. Can send money up to 3k and it's still $5 transaction fee. Too bad the nearest Wells Fargo from my fiance is in Indiana which is 8hr roundtrip. He was told that he just have to come there ONCE to sign up the paper.

Yup, Wells Fargo is cheap and it's a fixed amount, but they take a long time to process especially if it's your first time to do it. Lots of other paperwork too, if you are sending a big amount. Also, if I remember it right, it should be a direct deposit, and the recipient still get taxed or charged (so they get less than what you originally sent). It's still most convenient if your recipient could just show up there within minutes with all the required IDs, sign for it, get the dollars, and have it exchanged or deposited to their own account. All that processing time and paperwork is just not convenient. With banks, it sometimes takes over a week.

[TeapotGirl 66]

All ATMs are charged too, so if you bring a US ATM to the Philippines and make a withdrawal there, you are charged both for international transaction fee (by the local bank ATM and by your own bank), and most of the time you also get charged unknowingly because of the bad exchange rates (if you withdraw in a different currency).

That's why I said $6 transaction fee in every P10k I withdraw. That's the maximum amount you can take in 1 ATM transaction. So if you need take P20k you have to do it 2x.

Yup, Wells Fargo is cheap and it's a fixed amount, but they take a long time to process especially if it's your first time to do it. Lots of other paperwork too, if you are sending a big amount. Also, if I remember it right, it should be a direct deposit, and the recipient still get taxed or charged (so they get less than what you originally sent). It's still most convenient if your recipient could just show up there within minutes with all the required IDs, sign for it, get the dollars, and have it exchanged or deposited to their own account. All that processing time and paperwork is just not convenient. With banks, it sometimes takes over a week.

WOW..how much is the tax?