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Wiring money can be a secure way to move funds quickly, but it often comes with a hefty fee. There are ways to reduce wire transfer fees or avoid them altogether if you know how.
Banks charge wire transfer fees both on outgoing and incoming wires. This means that if you want to wire someone money, you’ll likely need to pay a fee on top of whatever you’re sending. For example, if you want to wire $20,000 for a down payment on a house, you might pay an additional $35 for the wire transfer fee.
Similarly, if someone in another country wires you $1,000, but you only see $970 in your bank account, it’s because your bank has taken out $30. If you’re really unlucky, the sending bank or a bank in the middle (an intermediary bank) will take out a chunk, too, meaning you could see upwards of $50 to $100 taken out of your money before it ever lands in your account.
Avoid Wire Transfer Fees
First, determine if you really need to wire the money. If you need to transfer money within the U.S., there are often ways to do that with your bank that don’t require a wire transfer. And if that doesn’t work, pick a bank with no or low fees (more on that in the next section).
Choose Banks With Low or No Wire Transfer Fees
There are a handful of banks that offer free incoming wire transfers, both domestic and international. The lowest fees were often with online banks and financial institutions better known for investing rather than a typical checking account.
If you have ongoing wire transfer fees, think about switching banks to take advantage of one with no or low fees. Many of the banks listed in the table below offer free accounts that make it easy to open an account with them even if you continue your relationship with your current bank.
Some of the lowest fees for incoming wire transfers (both domestic and international) include:
- TD Bank – This is the best bank for outgoing wire transfers. The locations are on the east coast and offer free incoming wires and reimbursement for one outgoing wire per statement cycle (either domestic or international), making it a top option if you initiate wires frequently.
- Ally – This online bank has no fees for incoming wire transfers and a mid-range fee for outgoing domestic wire transfers. Since Ally has low fees all around, this is a good option if you plan to receive a lot of wires.
- Discover® Bank – While you may be more familiar with Discover for credit cards, they also offer money market and online savings accounts. Discover doesn’t charge for incoming wires, though its outgoing wire fee is $30.
- Fidelity – While traditionally known for its investment arm, Fidelity offers a cash management account with zero wire fees.
- Capital One 360 – Another online bank with generally low fees, they offer fee-free incoming wire transfers. Similar to Discover, outgoing domestic wire transfers are $30.
- Axos – Another online bank with an option for a checking account without a monthly maintenance fee, Axos offers free incoming domestic and international wire transfers. Fees for outgoing wires are on the higher end.
| Bank | Incoming Domestic Fee | Outgoing Domestic Fee | Incoming International Fee | Outgoing International Fee |
|---|---|---|---|---|
| Ally | $0 | $20 | $0 | – |
| Discover | $0 | $30 | $0 | $30 |
| Fidelity | $0 | $0 | $0 | up to 3% |
| Capital One 360 | $0 | $30 | $0 | – |
| Axos | $0 | $35 | $0 | $45 |
| TD Bank | $0 – $15 | $0 – $30 | $0 – $15 | $0 – $45+ |
| Citibank | $0 – $25 | $0 – $35 | $0 – $35 | $0 – $35 |
| Lending Club | $0 | $20 | $0 | $40 |
| Wells Fargo | $15 | $30 | $16 | $35 – $45 |
| Chase | $15 | $25 | $15 | $5 – $40 |
| Bank of America | $15 | $30 | $16 | $35 – $45 |
Most banks charge for outgoing wire transfers (both domestic and international), so if you can avoid sending a wire, that’s your best bet.
Some banks have different tiers of fees depending on the account, so you’ll want to check for your particular account.
Unfortunately, many online banks don’t yet offer wire transfers, so if this is a service you need, check out the list above to make sure your online bank is listed. Otherwise, you’ll need to find a different way to get/send your money or open another account with a different bank.
Check Out Your Local Credit Union
Credit unions are more likely to have zero fees for incoming wire transfers, domestic and foreign, than larger banks. So if you think you’ll be receiving a lot of wires, this is a good route to investigate. However, most credit unions will still charge for outgoing wire transfers, typically around $20 to $25 for domestic and $40 for international. If you’re not familiar with credit unions, these are local organizations. They often have better interest rates for savings and lower rates for borrowing, plus they tend to give back to the community. But they are limited in scope, with often just a few branches. If you’re looking to wire money with a local credit union, learn more about the differences between banks and credit unions.
Related: Best No-Fee Banks
Alternatives To Consider
Bank-to-Bank Transfer
Check to see if your bank charges external transfer fees. If they don’t, this can be a great way to avoid wire fees while still electronically moving money. Some of the banks that don’t charge for external transfers include:
Apps
Consider using an app if you’re sending money to a friend or family member. You’ll need to link your bank account to the app so it can withdraw the funds and send them to the recipient. There are tons of apps to choose from, including:
- Paypal – The original person-to-person app for sending money. As long as you use your bank account or PayPal balance (not a credit card) and send the money to a friend’s personal account (not using the business option), this should be free.
- Venmo – One of the most popular money transfer apps around. Link it to your bank account to easily send money to a friend.
- Google Wallet – An easy way to send money. Link your debit card to the app (or use your desktop computer) to send money. But you cant send money internationally with Google Wallet.
To make these apps a fee-free experience, link your bank account and not a credit card. Those will incur a charge.
Related: These 6 Apps Will Make Sending Money Simple
Emerging Options
If you need to send money internationally but don’t have a bank account with low wire fees, TransferWise is a low-fee option that is particularly good if you are wiring money into the U.S. I use it frequently because it’s cheap and fast. The company offers good exchange rates and low fees. If you’re sending money with TransferWise, you need to register an account (it’s free), and you’ll need the banking information of the recipient. The one major drawback is that the fees for transferring money from the U.S. to other countries tend to be higher.
Read more: TransferWise Review
Bottom Line
With the proliferation of peer-to-peer payment apps and free online bank transfers, there are lots of ways to avoid wiring money in the first place. But if you need to wire money, look for a bank account with no or low fees.
