Remitting money to India can be an expensive affair sometimes. But you can get maximum bang for your money with some simple tips and tricks. You must know the jargon, find the most cost-effective service, and time your money transfer perfectly to make a smart choice.There are many companies that offer money transfer services in Chandigarh who make the task very easy for you. Read on to know easy tips and tricks to help you maximize your money by taking advantage of the fluctuating exchange rates in India.
Why Exchange Rates Change?
The rates of most of the international currencies change as they float i.e. the value of the currency relative to other currencies is set up by their demand and supply. While governments in certain countries set a fixed exchange rate but mostly they fluctuate. Foreign exchange is traded around the clock across the world. This is the reason why foreign exchange rates vary every minute. The amount you wish to transfer to India also makes an impact on the exchange rate. In case you are remitting a small amount any change in the exchange rate may result in slight difference, however in the case of large amount, there is a significant effect.
Know the Foreign Exchange Jargons
Foreign exchange has its own terms and jargon. It pays to know about common terminology so that you are aware what you are getting into. Some of the common terms are:
- Sell Rate: This is the money you get when you exchange your local currency for foreign currency.
- Buy Rate: Buy rate is what you get when you exchange foreign currency for local currency.
- Interbank Rate: This is also known as a bank to bank rate and is the wholesale rate at which the banks exchange currency between themselves.
By knowing about these terms you can be sure what exactly are you signing up for?Some of the companies dealing in foreign currency exchange in Chandigarh a step further and calculate exactly the amount the remittance receivers will get.
Keep Track of Exchange Rates
You can watch the daily interbank rates on your chosen currency to find out the best exchange rates. As there is constant fluctuation in currency rates so the price you will get will never be the same and there will be a variation every day.Many factors can cause the travel money to wobble, from economic forecasts to employment figures to interest rates so you need to watch out the currency movements and transfer the money only when the rates are climbing. Alternatively, when you wish to transfer money back to the local currency you can do that when the rate is falling. You can monitor the exchange rates online as most websites display live rates.
Shop Around for Most Economical Provider
Currency rates also fluctuate from one company to another. You may need to shop around for prices and find the best deal before you remit money to India. If remitting a substantial amount it leads to great savings. Also, check for any additional commission or transaction fees that may be involved at the time of the transaction. Once you compare the total cost of remittance you can finalize the company that gives you the best deal. Though the deal or exchange rate may appear to be very attractive with extra fees or commission involved the rates may not turn out to be as competitive as expected.
Also take into consideration the economy of India at the time you remit money. After following all these tips we are sure you can make the best choice while transferring money to India.
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