Many remote employees are paid in US dollars. This is great considering that the US dollar is worth more than the Canadian dollar. To pay for living costs, however, the USD in your bank account must be converted to Canadian Dollars.
Some banks allow you to place online orders that deduct money from your checking or savings account; the foreign currency is then sent to your home address, often for a fee depending on the size of the order. Others require you to order currency by call or in person at a branch. Requests for common currencies, such as euros or Canadian dollars, can be met the same day, whereas less-requested currencies may take two to four days to arrive.
Shipping and processing fees are factored into exchange rates for cash transactions, making the cash rate less favourable than the non-cash rate. Paper instruments such as cheques and drafts are subject to non-cash rates. Incoming and outgoing wire transfers, as well as other electronic transactions, are subject to non-cash rates. These instruments do not have to be stored or moved, and they take less time and money to process than cash transactions. As a result, non-cash instruments are given a better rate.
Banks will charge you up to 4% to convert USD to CAD in this case. The difference between using your banks and Remitbee for a 50,000 USD annual salary is almost $1750 USD in savings.
Remitbee online currency exchange allows users to convert these currencies to Canadian dollars directly between bank accounts for a nominal fee of around 0.5% whereas banks charge up to 3%. Remitbee offers you a fast and easy way to exchange your money. The perfect solutions for conducting business overseas, or paying international tuition.
Many that are unable to use physical currency exchanges due to COVID-19 issues will find the service useful. Instead, customers can use the Remitbee app or website from the convenience of their own homes. At-home stock traders, who can use the service to exchange for USD and use it to purchase USD-denominated stocks to avoid exchange rate fees, snowbirds who migrate, and even students who need to pay tuition in USD are among the other users of the service.
In 2020, the average home price in Canada is expected to be about $531,000 CAD. When converting USD to CAD, a relatively insignificant .007 difference in the exchange rate will save you over $3,500! Choose wisely when transferring money from USD to CAD and CAD to USD.
This means that a seemingly insignificant .0386 difference in the exchange rate will save you around $1235 USD per year. Consider how many meals you could buy with that extra cash! See how much you could save by using Remitbee Foreign Exchange in the live comparison table.
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