Exchange rates, Payment methods, How to, Transfer fees and much more
If you are looking to send money from Canada overseas, you may be interested in Scotiabank.
Since the beginning of 2020, Scotiabank has introduced a new digital option for international money transfers. This is available to Scotiabank customers who use mobile banking and online banking. The bank also offers the option to transfer money abroad by going into a branch.
But how does it all work, and is it the best option for you? Keep reading to find out everything you need to know about sending money overseas with Scotiabank.
When transferring money using Scotiabank, you can fund the transfer using your Canadian bank account. Note that the account must be in Canadian dollars. Scotiabank makes it easy to send to the same recipient multiple times. The recipient's details are automatically saved for future transfers.
Your recipient will need a bank account to receive the transfer as well. They will have the money in their account in 1 to 3 business days. If you prefer to have them pick it up in cash, you will need to use Scotiabank’s Western Union option.
Pros
Flat fee for transfers so you know price in advance
Convenience of app and online access
Sending process is straightforward and can be done in seconds
Can save contacts for sending repeat transfers
Cons
Must be able to use online banking or mobile banking
Exchange rates are not transparent
Going into branch is time consuming and inconvenient
Receiver must have bank account
Transfers take 1-3 days to arrive
There are two methods for sending - either through the mobile app or online banking.
Online banking
Scotiabank mobile app
It may seem that the flat fee for sending a Scotiabank International Money Transfer makes this a low cost option. However, Scotiabank still has to make a profit on the transfer.
When trading currencies among themselves, banks use something called the mid-market rate. This is the rate you’ll find if you search for the exchange rate on a search engine. For individual customers, however, they add a margin on that rate so that they make a profit.
How this works in practice is simple. For example, on a particular day the mid-market rate may be CAD $1.00 = US $0.75. A bank will offer a customer a rate close to CAD $1.00 = US $0.73. This means for every dollar you exchange, they get to keep $0.02.
So in addition to the transfer fee, you’ll pay that extra percentage on the exchange rate. For most money transfer services this averages 2% to 5% percent. With Scotiabank, it’s unclear how much the bank makes as they do not publicise the rate offered for a transfer
In total over 200 countries are supported. Some of the most popular currencies include:
By telephone: 1-800-472-6842
In the Greater Toronto Area: 1-416-701-7200 / 1-416-701-7200
Mobile Banking Help Desk: 1-877-908-8866
By mail: Scotiabank Head Office, 44 King St West, Toronto ON, M5H 1H1
Live chat: On the Scotiabank website Scotia Bank Website
On Twitter: twitter page - scotia bank
Scotiabank offers a program for new immigrants called StartRight. It is available for permanent residents with 0-3 years in Canada, for those studying in Canada and foreign workers.
Among the benefits of their Newcomer to Canada offering are the following:
Be sure to read the fine print on the benefits offered, before committing to a bank.
The StartRight program also includes personalised support at your local branch. This is offered in a variety of languages so you can communicate in the way that you feel most comfortable.
If you already have a bank account with Scotiabank, it may seem convenient to use their service to send money overseas too. The bank recognised the need for a faster and easier system of transfers. Their creation of an international money transfer service works well if you are tech savvy and can use apps and websites easily. If you need assistance with the process though, you’ll still need to visit a branch to send a transfer. However, there are more transparent and cheaper services out there. To learn more, read the Remitbee Blog for reviews of other money transfer services.