Millions of U.S. households send billions of dollars abroad every year. Whether the funds are for family or friends, or to purchase international assets, it is often difficult to conveniently send large sums of money. In addition, with so many options available, people need to take into account the speed, support, and costs of the various methods that financial institutions provide for sending and receiving funds abroad. The following are five of the best and most secure ways to accomplish this task. Show
1. Bank-to-Bank TransfersSome banks let people take money directly from one bank account and deliver it to a recipient's bank account. These types of transactions can be arranged online, over the phone, or in person at the delivering bank. They may have a fee depending on the institution, and the account and routing numbers for both the sending and receiving banks are required. Key Takeaways
Some banks may offer special remittance programs for transferring slightly smaller amounts. However, in cases such as these, it is important to look at the exchange rates because although a fee might not be charged, the institution could be making money off of the transaction fee spread. 2. Wire TransfersAdditionally, it is possible to send large sums of money from one bank account to another through the use of a wire transfer. These types of transfers are initiated through a bank officer at the delivering bank who fills out the necessary forms. Wire transfers, for the most part, must be done in person. There is also a fee for this type of service, but wire transfers offer protection from both banks involved, making the fee worth it. For people residing in the U.S., wire transfers must be executed before 5 p.m. EST for the money to arrive the same day. 3. Automated Clearing House TransactionsSimilar to wire transfers and bank-to-bank transfers, Automated Clearing House (ACH) transactions are electronic but use a computer-based clearing house that acts as an intermediary to process the exchange of transactions. The Federal Reserve bank, for example, is the largest U.S. ACH operator, processing 63% of all commercial ACH transactions in 2019. There are no fees for these types of transactions, but they do require both banks to be linked together. To do this, both parties need to follow bank-specific instructions. 4. Cash-to-Cash TransfersIf a person has a large sum of money in cash and needs to send it abroad, it is possible to use domestic, walk-in money transfer centers to transfer that money to an international money transfer center. Institutions such as Western Union, MoneyGram, and Ria, are the classic players offering this type of service. In the last several years, many fintech companies have started providing international money transfers. Some names that are prominent in the industry are Wise, Payoneer, PayPal, and WorldRemit. Physical cash is deposited in one of these money transfer centers. The domestic currency is converted to the currency of the destination country and can be picked up by the recipient at a participating money transfer center. In some countries, the money can be delivered to the recipient at a residential or commercial location. 5. Prepaid Debit CardsThere are some services that can send funds via a prepaid debit card. If this method is chosen to send a large sum of money, the sender can load a prepaid debit card with cash funds, and the receiver of the funds can withdraw them using the prepaid debit card. In some cases, the prepaid card can be used to make purchases just like with a normal debit card. However, there is normally an activation fee or monthly fee. The Bottom LineThere are several ways to send large sums of money to friends or family abroad. While speed is often the primary objective, costs and security of sending funds abroad should be considered as well. Wire, ACH, or cash-to-cash transfers might be cheaper alternatives to using bank-to-bank transfers. Lastly, recipients of prepaid debit cards can usually use the cards to withdraw funds or make purchases after paying an activation fee. Money news, for smarter youseMake smarter financial decisions by staying up-to-date with the hottest news in the world of personal finance.  If you’re planning to transfer more than $10,000 from overseas, a money transfer service can help you save on fees — but you still need to report the transfer to the US government. Read on to familiarize yourself with the tax implications and what you need to do when transferring large amounts of cash — and what the penalties could be if you don’t. Do I have to report large transfers into the US?Yes. No matter where you’re from, if you’re receiving more than $10,000 while in the US, you’ll need to abide by US laws put in place to both protect both your money and the interests of the government. By law, banks report all cash transactions that exceed $10,000 — the international money transfer reporting limit set by the IRS. In addition, a bank may report any transaction of any amount that alerts its suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000. US law requires banks and money transfer companies to report:
Compare providers for your next large transfer to the USOur table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send. Documents specific to sending large amounts into the USIf you are living in the US and received foreign gifts of money or other property, you’ll need to report it on Form 3520 — Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. US citizens and residents are required to use Form 3520 for:
Form 3520 is considered an “information return,” rather than a tax return, because foreign gifts generally are not subject to income tax. However, you are subject to stiff penalties for failing to submit Form 3520 when it is required. Who is responsible for filing Form 3520 — me or the person who sent the money?As the recipient of the transfer, you are solely responsible for reporting the amount you received during the current tax year with your annual tax filing. The penalties for failing to file Form 3520 on time are equal to the greater of $10,000 or the following:
Why is the US government interested in how much I receive?Laws are in place to protect you and the government from fraudulent activity. By monitoring transactions in and out of the US, authorities are able to:
Since 9/11, the US government has put even more stringent laws in place. For example, the Patriot Act allows the government to track money more carefully due to terrorism. What should I expect when receiving money from overseas?To prevent the US government from delaying or canceling your money transfers into the country, you’ll need to provide proof of a government-issued photo ID — a driver’s license or passport, for example — and proof of your address. If you already own an account with the bank or money transfer company, you may not need to provide ID each time you receive money. However, online money transfers may have stricter rules when it comes to proof of ID and could ask for additional documentation or to verify your identity by phone. What other steps should I take to avoid legal or tax problems?To avoid the penalties that come with a failure to report large sums of money into the
country, it may be worth it to speak to a tax lawyer to make sure that everything is above board and complies with the laws of all countries involved. Bottom lineReceiving large money transfers while in the United States almost always need to be reported to the IRS, failing to do so could lead to a fine or worse. It may be tempting to think you can slip through the cracks and save money, but the fines far outweigh the benefits. Instead, learn how to save money on your next transfer to help offset the overall cost of the taxes you may owe. Frequently asked questionsKelly Waggoner is US editor-in-chief at Finder. She works with a talented team of expert writers and editors focused on helping readers to save money, earn money and grow their wealth. She joined Finder in 2016 as an editor, germinating the site from money transfers to include the wide scope of personal finance. She's worked with publishers, magazines and nonprofits throughout New York City to develop best practices around editorial, SEO, plain language and accessibility. She also ghostwrote a how-to on copyediting for the Dummies series. Between projects, she toys with words, flips through style guides and fantasizes about the serial comma’s world domination. More guides on Finder
Can you transfer large amounts of money from one bank to another?If you're sending a larger amount, you may want to use a wire transfer at your bank. You'll need the recipient's account and routing numbers. You and the recipient will likely incur fees. Wire transfers take place in less than 24 hours but do not occur on weekends or on bank holidays.
How much money can you transfer between accounts without being reported?How much money can you wire without being reported? Financial institutions and money transfer providers are obligated to report international transfers that exceed $10,000. You can learn more about the Bank Secrecy Act from the Office of the Comptroller of the Currency.
How do I transfer 50k from one bank to another?How to transfer money from one bank to another online.. Link the two accounts.. Provide external account information.. Confirm the new account.. Set up transfers.. Benefit to external bank transfers: Boost your savings yields.. Check the limits to savings withdrawals.. More options to send money to others.. What is the maximum you can transfer between accounts?ACH transfer limits vs wire transfer limits
ACH transfers are subject to limits on how much money can be moved. These limits can be per day, per single transaction or per single month and range from $10,000 per month to as high as $25,000 a month depending on the bank.
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Transferring large sums of money between bank accounts
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