When it comes to sending money overseas, Bank of America has its fees and methods. In this post, I wanted to share some of my thoughts on their international wire transfer fees and how they stack up against crypto options.
Understanding Bank of America's Fees
Here’s the scoop. Bank of America charges a flat rate of $45 for each outgoing international wire transfer in U.S. dollars. If you’re expecting money into your account, they take out another $16 as a receiving fee. And don't forget about the extra fees that might get tacked on by intermediary banks, which can run between $10 to $100.
Example Breakdown
Let’s say you want to send $1,000 to the UK. Your total cost would look something like this: - Fixed Fee: $45 - Exchange Rate Markup: Roughly 5.66% (for GBP/USD) - Total Fees: $101.60
The Hidden Costs
Banks aren't just about the obvious fees. They also add in an exchange rate markup, which can be as high as 7.37%. So, sending money through Bank of America could be a bit more expensive than what it seems.
Intermediaries and Destination Bank Fees
Also, keep in mind that once your money leaves your hands, it could go through intermediary banks that charge their own fees, and the destination bank might have its own fees too. That's a lot of potential extra cost.
The Crypto Option
Now, let’s get into the crypto side of things. Cryptocurrencies like Stellar or Ripple have transaction fees that are almost nonexistent when compared to banks.
- Stellar (XLM): About $0.0000035
- Ripple (XRP): Around $0.0011
- Bitcoin: 75 cents for a $90,000 transfer
- Bitcoin Cash (BCH): $0.0024
- Dash: $0.0043
Why it Matters
When you do the math, you’ll see that crypto-based options can save you a lot of money. Plus, they’re typically faster too. Traditional wire transfers can take a couple of days, while crypto transactions can be done in an instant.
Final Thoughts
At the end of the day, it pays to do a little digging. Bank of America’s fees can add up quickly, and while they certainly provide a service, crypto solutions are often a more wallet-friendly option.
