Billions of dollars are transferred out of America to other parts of the world every year, but a new study by finder.com suggests just 4% of these people are happy with the value of their money transfer provider.
Based on The World Bank data of remittances from 2010-2015, finder.com estimates $139.13 billion was transferred out of America last year, and 145.56 billion will be transferred to other countries in 2017.
A survey of 2,005 American adults commissioned by finder.com and conducted by global research provider pureprofile, found 80% of people who transfer money overseas feel ripped off. Yet 25% of these people said they do nothing about it and always go back to the same provider.
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According to finder.com, Americans could save significantly by comparing money transfer providers every time they transfer money out of the country. Some providers charge no transfer fee while others charge $5 or even $10 per transfer. For example, transferring $5,000 to Mexico – which is where the most money is transferred out of America – could be a difference of hundreds of Pesos depending on the provider.
We’ve also included the top 5 countries Americans send money to and how much money was transferred to each in 2015. Mexico is the top, followed by China, India, Philippines and Vietnam.
More details are below with further breakdown and analysis.
- finder.com estimates that Americans transferred $139.13 billion last year, and forecasts that we will transfer out of America a whopping $143.56 billion in 2017, based on World Bank remittance data from 2010-2015
- The average annual growth rate of money being transferred out of America each year since 2010-2015 is 4%
|Year||Total annual remittances from USA|
Source: finder.com analysis of The World Bank Bilateral Remittance Matrix data
*Values are forecasts based on average 4% year on year growth rate from 2010-2015
- American immigrants transferred over $134.96 billion to out of the country to other counties in 2015, making up 23% of the world’s international money transfers ($580.59 billion)
- It’s the highest amount of money transferred out of America in one year
- The amount of money transferred out of America to other countries has increased by 19% ($25.11 billion) since 2010, from $109.84 billion in 2010 to $134.96 billion in 2015
- The top 5 countries that Americans send money to are:
|Country||Total value transferred by Americans in 2015|
FMT Survey (November 2016) – Q6-7
- 34% of Americans transfer money overseas
- Out of those that do, only 4% think their provider is great value
- 80% feel like they are being ripped off when transferring money overseas
- Over 2 in 5 (42%) feel very ripped off
- Millennials (aged 18-34) feel the most ripped off when transferring money overseas (81%), followed by Baby Boomers (80%) then Gen X (79%)
- Yet of those who feel ripped off, 25% said they do nothing about it and always go back to the same provider or bank
- 30% said they sometimes compare providers before transferring
- Despite more women (78%) feeling ripped off when transferring money overseas compared to men (65%), more women do nothing about it and use the same provider (29% vs 19%)
Details about the study can be found here: https://www.finder.com/money-transfer-rip-off