Wire Transfers: A Guide to What Banks Charge

Wire transfers are one of the most effective ways to quickly send a lot of money from one bank to another — but they’re usually expensive. Here’s a look at how they work and what they cost.

To see what big banks and credit unions charge, click here.

Wire transfers vs. ACH transfers

The term “wire transfer” can refer to any electronic funds transfer, but it also has a specific meaning: a money transfer between two financial institutions using a go-between such as the Fedwire Funds Service or the Clearing House Interbank Payments System (CHIPS). There’s usually no limit to the amount you can send through a wire transfer, and the money is delivered within a day. You pay a higher price for the speed.

In contrast, Automated Clearing House (ACH) transfers, which consumers typically use for more routine payments, take at least one business day to process and may be limited to smaller dollar amounts. ACH transfers are usually free or low-cost.

Outgoing vs. incoming fees

Some banks and credit unions charge fees both to send a wire (“outgoing”) and to receive one (“incoming”). Both the sender and the recipient may need to pay a share. But incoming transfers generally cost much less than outgoing ones, and some banks even do them for free.

Average Cost: Among the institutions we surveyed below, incoming wires cost an average of about $10, outgoing domestic wires cost an average of about $25 and outgoing international wires cost an average of about $40.

Domestic vs. international fees

You can send and receive wire transfers within the U.S. and abroad; some banks refer to international wires as “remittance transfers.” Because domestic transfers can be completed through one payment system, they tend to be cheaper. International wires typically involve more parties, including a U.S. bank, a foreign bank and wire processing systems in both countries.

Some banks let you send funds internationally in American dollars or the foreign currency. It’s often cheaper to send funds in the foreign currency because the bank will make money off of the transfer fee and the exchange rate they use.

[MORE: Wire Transfers: A Great Way to Send Money Abroad]

Wire transfer fees by financial institution

Here’s a breakdown of the cost to send and receive wire transfers domestically and abroad at some bigger banks and credit unions.*

Financial institution	Domestic: Incoming	Domestic: Outgoing	International: Incoming	International: Outgoing
Ally Bank	$0	$20	$0	N/A
Alliant Credit Union	$0	$25	$0	$50
Bank of America	$15 Note: This fee is waived for customers with Interest Checking and those enrolled in the Preferred Rewards program	$25	$16 Note: This fee is waived for customers with Platinum or Platinum Honors in the Preferred Rewards program	$45 (processed as U.S. dollars); $35 (for foreign currency)
Bank5Connect	$0	N/A	$0	N/A
BB&T	$15	$25 Note: $24 for customers in Indiana, Kentucky, Ohio and Texas	$18	$65
BBVA Compass Bank	$15	$15	$15	$15
BMO Harris Bank	$0	$25	$0	$45
Capital One 360 Bank	$0	Up t0 $40	N/A	N/A
Chase	$15 Note: This fee is waived for transfers between Chase accounts and for customers with Chase Premier Platinum accounts	$25	$15 Note: This fee is waived for transfers between Chase accounts and for customers with Chase Premier Platinum accounts	$40
Citibank	$15 Note: This fee is waived for customers with Citigold and Citigroup Private Bank, Citigroup Private Bank, Citi Global Executive Preferred or Private Client accounts.	$25 Note: This fee is $17.50 for customers with Citigold and Citigold International accounts and $18.75 for customers with International Personal Banking and Citi Global Executive accounts.  This is waived for customers with Citigroup Private Bank, Citi Global Executive Preferred or Private Client accounts.	$15 Note: This fee is waived for customers with Citigold, Citigroup Private Bank, Citi Global Executive Preferred or Private Client accounts.	$35 Note: This fee is $25 for customers with Citigold and Citigold International accounts and $30 for customers with International Personal Banking and Citi Global Executive accounts.  This is waived for customers with Citigroup Private Bank, Citi Global Executive Preferred or Private Client accounts.
Connexus Credit Union	$20	$20	$20	$20
Consumers Credit Union	$15	$25	$15	$60
Discover Bank	$0	$30	$0	$30
First Internet Bank of Indiana	$0	$20	$0	$50
Nationwide	$0	$25	$5 Note: This fee is waived for current or retired Nationwide employees, both associates and agents, and their family members.	$35
Navy Federal Credit Union	$0	$14	$0	$25
Pentagon Federal Credit Union	$0	$20	$0	$30
PNC Bank	$15 Note: This fee is waived for customers with Performance Checking	$30 Note: This fee is waived for customers with Performance Checking	$15	$45 Note: Minimum transfer amount is $100
Simple Bank	$0	N/A	$0 Note: These transfers are routed through Wells Fargo, so they must be directed to that bank.	N/A
SunTrust	$15	$25	$30	$50
TD Bank	$15	$25	$15	$40
Union Bank	$14	$20	$14	$45 (in U.S. dollars); $35 (in foreign currency)
U.S. Bank	$20	$30	$25	$50
Wells Fargo	$15	$30	$16	$45
	Wells Fargo also offers a remittance transfer service called ExpressSend, which mainly works with South American and Asian countries. The transfer has lower limits than regular wire transfers do, but it costs less. You pay a transaction fee based on the amount you send. For example, you can make a money transfer to India of $500 for a $5 fee, provided the receiving bank is eligible for this service.

*Disclaimer: These are the standard fees for one-time wire transfers based on each financial institution’s disclosures and policies. If there are multiple ways to perform a wire transfer, the price of the cheapest way is shown (usually through online banking).

Other tips

• Pricing can differ by how you wire: Some banks base outgoing wire fees on how you initiate the transfer. Doing it yourself through online banking tends to be the cheapest way. Requesting the transfer at a branch or on the phone can add $10 or more to your fee. Union Bank, for instance, charges $45 for domestic outgoing wires initiated over the phone with customer service, and $20 for those initiated online.

• Recurring wires can be slightly cheaper: Some financial institutions, including Wells Fargo and SunTrust Bank, let you perform a recurring outgoing wire transfer for a few dollars less than a one-time outgoing transfer. If you need time-sensitive or large money transfers, this may be convenient, but otherwise consider using an ACH transfer.

Knowing how wire transfers are priced can help you avoid paying too much for this service.

Methodology

We looked at the 15 largest banks by assets and eliminated those without a significant retail banking presence. We also included financial institutions in the country’s five largest metro areas and several of the largest online-only banks that offer a full suite of checking and savings products. We rounded out the list with some of the country’s biggest credit unions with broad-based memberships.

Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.

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Image via iStock.

 

from NerdWallet Credit Card Blog
http://www.nerdwallet.com/blog/banking/wire-transfers-what-banks-charge/