Finance Tips

Remittances contribute to economic growth and to the financial and social inclusion of needy people worldwide. Recent studies have shown that remittances not only play an important part in many people’s daily lives but are particularly important for people during financial crises.

In Latin America and the Caribbean, remittances play an important role in the economy of the region, totalling over $66.5 billion in 2007, with about 75% originating in the United States. This total represents more than the sum of foreign direct investment (FDI) and official development aid (ODA) combined. In 7 Latin American and Caribbean countries remittances account for more than 10% of GDP and exceed the dollar flows of the largest export product in almost every country in the region.

A majority of the remittances from the US have been directed to Asian countries such as India, the Philippines and China. Most of the remittances happen by conventional channel of agents, however online money transfer has gained substantial momentum over the years. Continue reading ‘Top Countries Receiving Remittance Money’ »

There are 2 kinds of remittances-family and community. Family remittances are money sent by individual immigrants to family and friends back home. These remittances are often used to meet their most basic needs.

Community remittances are money sent by immigrants and by hometown associations to communities in their home country. This money is traditionally used for infrastructure like roads, schools, parks and churches.

Remittances are now more than double the size of net official flows and are second only to foreign direct investment as a source of external finance of developing countries. In 36 out of 153 developing countries, remittances are larger than all capital flows, public and private.

Also, remittances are stable and may even be counter-cyclical in times of economic hardship. Moreover, remittances are person-to-person flows, targeted to the needs of the recipients who are often poor. Continue reading ‘Understanding the Importance of Remittance’ »

Not all wire transfer services offer good deals for those wanting to send or receive money abroad. It all depends on the size of the wire transfer. Some options are good for large transfers, but larger transfers can also limit the options. Smaller transfers can usually be done using any type of method, but the fees can be costly when sending money using services that specialize in large money transfers.

For large sums of money, the best method may be a bank’s wire transfer service. This transfer is also one of the easiest, but there are a few things to keep in mind when you’re thinking about transferring money to England through a bank.

Both the sender and the recipient have to have a bank account. The sender must also know the recipient’s bank account number so the wire instructions can be sent (no one can send money if they do not know where it is going.) The sender will usually get charged a flat rate when sending money, no matter how much or how little they send. These fees vary, so it is best to check with the bank sending the transfer beforehand. Continue reading ‘Before Sending Money Do a Little Research’ »

Aside from the fact that the fees are outrageous, the lines are long, and the inconvenience of having to find a nearby transfer agent, there is the concern of carrying large sums of cash on both the sending and receiving end. The exchange rate is also an issue, often leaving fewer funds available after the transfer.

For millions of people a prepaid debit card is a blessing. A person in the U.S. can purchase a prepaid card at a retail store or even over the internet. They send the card to the recipient and once the card is activated, money can be transferred over the telephone, at a retail store, or online. These cards offer the sender a substantial savings, with the ability to send funds for as low as $5.00.

Immigrants working in the U.S. are sending billions of dollars home to support their families every year. The prepaid debit card offers savings and security for immigrants and their families. Funds can be transferred anytime 24/7, sometimes right from their home. With the lower costs involved in transferring money by this method, immigrants can send more money home. Continue reading ‘Money Transfers With a Prepaid Debit Card’ »