So, you’re sending cash abroad for the first time. Whether you’re sending it to your college-attending son in Canada or buying a Costa Rican beach house, the process can be intimidating. When you have to supply banking details and pay fees you don’t understand, it’s easy to feel vulnerable.
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Although most people now are taking advantage of doing their banking online, there are still many out there who are afraid to take the plunge. They may think it’s not secure enough, or they may have just gotten used to paying their bills by mail or with a teller. I am a big fan of online banking, and here a few reasons why:
1. Online banking is a great way to pay your bills.
Most, if not all of your bills can be paid online through your bank’s online banking. It only takes about a minute to set up a payee initially, and then your online banking will remember your bill information for the next time you need to pay your bill. Paying your bills online ensures that your bill gets paid on time and it is a lot quicker and cheaper than sending your payment by mail or going in person to a branch.
What is CDIC?
While some Canadians bank at credit unions, many more deal with the big banks. The major banks in Canada are all insured by the Canada Deposit Insurance Corporation (CDIC). So, just what exactly is CDIC? Well, it’s actually a federal Crown corporation that was created by the Canadian Parliament in order to protect your deposits in case the bank ever happened to go under.
What CDIC is NOT
CDIC is not a private insurance company and neither is it a bank. The main point of the creation of CDIC is to help keep Canada’s financial system as strong as possible.
There are a lot of financial institutions out there that can provide you with bank account services, however, regardless of the bank you choose to do business with, there are five key things you can do to make the most of your banking experience.
1. Keep only the minimal amount required in your checking account. Most banks pay little or no interest on balances kept in checking accounts, so every time you get paid, keep only a minimal amount of money in your checking account, and put the rest into savings. That way you can earn some interest on your money and make it work for you.
2. Learn how you can bank for free. Most financial institutions provide a way for you to do your banking for free either by maintaining a minimum balance or by only doing a certain number of transactions. Most banks also provide free banking to seniors and students. It is well worth your while to give your bank a call and find out how you can bank for free.
I recently sent money overseas and before I did so, I compared the cost of using MoneyGram versus the cost of wiring the money through my main bank. This is what I discovered:
Using MoneyGram
To send money using MoneyGram, it would only cost me $25 and the person receiving the funds would not have to pay anything. The process was quick and easy. I just went to a local post office outlet and provided them with a piece of ID and used my debit card. I was then given a number that I had to give to the recipient. The recipient then would simply go to a MoneyGram outlet and provide that number. That’s all that was necessary. It’s quick and easy and inexpensive. The recipient can receive their money within a few minutes.