The sections below will help you know the different ways of sending money to Bangladesh, the information required to send and receive, the benefits of using money transfer services, and the specific things to look at making a money transfer to Bangladesh.
Bangladesh has a developing economy, and it is the 33rd largest in terms of GDP, which is $416 billion. Also, they have the 31st biggest purchasing power in the world. The strong financial sector of Bangladesh is one of the reasons for stable growth over the long term, and it ensures there is good support for money transfer companies.
The national currency of Bangladesh is the Bangladeshi Taka. At the time of writing, 1 BDT is equal to 0.012 USD. The country has the Chittagong Stock and Daha Stock Exchange, which contributes to one of the fastest-growing economies in Asia.
Agriculture is a big part of Bangladesh’s economy. They manufacture and develop a lot of goods for neighboring countries and worldwide. Some of the biggest industries include textiles, pharmaceutical products, electronics, shipbuilding, automotive, bicycle, leather, glass, and paper.
Are you looking to find out the best way to money to Bangladesh? The steps are simple and easy. Read below to get started on the best ways to send money to Bangladesh.
There are multiple ways to send and receive money easily in Bangladesh, but these will largely depend on the provider you decide to use. Below you will find everything you need to know about the best ways to send money to Bangladesh.
The Bangladeshi diaspora has been using both formal and informal methods to send money home. Banks are the dominant players, with a 2010 International Organization for Migration (IOM) report showing that 74 percent of recorded remittances came through the banking system.
Money transfer service providers have also been gaining ground in the different remittance corridors to Bangladesh. In September 2011, the central bank of Bangladesh (Bangladesh Bank) issued guidelines on Mobile Financial Services for Banks. This move added another legal layer to the existing Money Laundering Prevention Act 2002 and the Foreign Exchange Regulation Act of 1947.
As it stands today, the following are the formal ways of sending money to Bangladesh as authorized by the Bangladesh Bank.
The banking industry in Bangladesh comprises state-owned banks, private commercial banks, and foreign-controlled banks giving a total of 59 scheduled banking institutions. According to the 2017 Global Findex report, 65 percent of adult males and 35 percent of adult females have bank accounts. This improvement means that many of them can receive bank transfers directly to their accounts.
Starting in June 2018, banks in Bangladesh were able to transact faster on the internet through online banking. However, banks have to register on the National Payment Switch Bangladesh (NPSB) managed by the Bangladesh Bank to go down this route.
The time it takes to send through wire transfers depends on the source country. It can take anywhere between 2 to 7 business days. The cost of sending money through bank-to-bank wire transfers can also be prohibitive because of intermediary banks.
Money transfers from the Gulf Cooperation Council (GCC) countries to Bangladesh have traditionally been through banks. However, money transfer service providers such as MoneyGram, Western Union, Xpress Money, TeeMoney, Xoom, WorldRemit, Wise, and others, are now becoming dominant.
These providers guarantee fast, cost-effective, and secure money transfers to Bangladesh. Signing up for transfer accounts is very simple and fast. You’ll need your name, email address, and phone number to register an account. Once set up, you can pay for your transfer using a debit, credit card, bank transfer, or debit.
Most providers allow you to send money through their websites and downloadable mobile apps. You can also deposit money from a store and send it to your loved ones. For example, Western Union allows you to start the process online and complete it from a store.
The following are your options for sending money through money transfer operators (MTOs).
You can send money through the MTO-to-bank platform. This method is the perfect alternative to bank-to-bank transfers. It is faster, more secure, and less costly. TransferWise officially launched transfers to Bangladesh Taka (BDT) in May 2016. It takes anywhere from 2 to 3 days for most transfers from providers such as WorldRemit, Xpress Money, Xoom, Western Union, and MoneyGram to reach Bangladesh.
This is one of the most preferred ways of sending money to Bangladesh. Every provider has a payout network that brings together agents you can send money for collection. For instance, WorldRemit works with Bangladesh banks such as Dutch Bangla Bank, Brac Bank, Social Islami Bank, Agrani Bank, Bank Asia, etc. Xoom has 6,100 locations all over the country; you can send your loved ones money for pick up. The money gets delivered in minutes or under an hour.
The convenience of transfers directly to mobile phones is unbeatable. Even people in rural Bangladesh with no access to formal banking services can receive money on their mobiles. WorldRemit is connected with mobile financial services such as bKash and Rocket to help you send money swiftly to your family back at home.
In July 2019, Padma Bank signed an agreement with Transfast to allow Bangladeshis abroad to send money home through the bank’s 57 branches. Some providers may give you discounts or cost-free sending offers if you are a first-timer.
With the various ways of sending money, as seen above, each provider has its requirements. There is some information you will be requested to provide to ensure a smooth money transfer to Bangladesh.
You may be asked to provide more information if the amount you are sending or the frequency proves suspicious to the authorities. However, this is very rare.
Most providers give you a transaction reference number or PIN to help you track or query your transaction online. When you receive this number, send it to your loved ones as they will need it to complete the transaction. The following are the main ways your loved ones in Bangladesh can receive the money you’ve sent them.
If the recipient has a bank account, they can opt to receive money through a direct bank deposit. This method is safer and more convenient for large amounts of money. With online banking in place, your loved ones should receive an SMS notification when the deposit gets credited. The direct deposit could be from an MTO or another bank in the diaspora. Learn more about direct deposits and wire transfers in our direct deposit vs. wire transfer guide.
Most providers have invested in strategic partnerships with banks and other institutions to bring agencies closer to the people. Whether you are in Rangpur in the north or Chittagong on the southeastern coast of Bangladesh, you’ll find an agent nearby. This method of receiving money works well in rural areas where most people are far from formal banking services.
Because of security reasons, the recipient should tag a friend along or a trusted relative.
In October 2017, Dutch-Bangla Bank and WorldRemit struck an agreement to enable Bangladeshis to receive instant transfers from their loved ones abroad through Rocket mobile money. Data from Bangladesh Bank shows that 53.7 million Bangladeshis had mobile money accounts as of June 2017.
Following in the footsteps of Dutch-Bangla Bank, BRAC Bank also partnered with WorldRemit in November 2018. This partnership enabled the 30 million bKash mobile money subscribers to receive money directly into their wallets from their loved ones abroad.
You can take advantage of money transfer services to receive funds in Bangladesh. The speed of transfer is typically faster than what is provided by banks. Also, you can enjoy currency exchange rates that match the mid-market rate. This saves money when converting to BDT.
Money transfer services like Wise have lower overheads than banks. They pass the savings onto the customer by providing low fees. Compare the fees with a bank, and you will notice a big difference. Also, some specialist transfer providers charge based on a variable fee structure. This means that small and big transfers are viable.
Receiving money using a mobile device requires an app from your bank or money transfer service. Visit Google Play or App Store to learn about the features included in the app of your financial services company.
Good quality mobile apps will have the same functionality as official websites. For example, you can register an account and view transactions within your app. In addition, most apps allow you to set up several security protocols to log into the account securely. This includes fingerprint scan, PIN, face recognition, and 2-factor authentication.
Receiving money in Bangladesh is a straightforward process. Most providers will notify the recipient by SMS or email that they’ve got the cash. Depending on the provider, they’ll be required to carry along some information to help verify their identity and complete the transaction. The following is a general list of what is needed.
Other providers may require full disclosure of the source and purpose of the remittance. This measure helps in combatting fraud and money laundering.
A study looking at 84 migrant households in Bangladesh shows that loan repayment, household consumption, investment, exchange rate leverage, and social contributions are some of the common reasons for remittances to Bangladesh.
Over 50 percent of remittances to Bangladesh target low-income households, mostly in rural areas. The money received helps in supplementing household income and buying necessities such as food.
The process of relocating abroad is usually an expensive endeavor. Family members and friends contribute to ensure a successful journey and resettlement abroad. Part of the remittances back home are used to offset debts and other credit strains. Some of the debts could be historical, taken during times of hardship.
Some Bangladeshi abroad may have intentions of coming back home permanently someday. Investments are intended to create a soft landing for such migrants and give their families a reliable source of income in case remittances fail. Investments could be in real estate, financial assets, or business.
Education in Bangladesh is free and compulsory for the first 12 years of learning. That said, private learning institutions usually give a much better quality of education than the public system. This phenomenon makes Bangladeshis in the diaspora send money home to help their families access quality private school education.
Apart from mainstream reasons, there are social reasons for sending money home. Festivals such as Eid-Ul-Fitr, Eid-Ul-Azha, Pahela Baishakh, and Durga Puja involve expenditures often financed through remittances. Weddings and social development initiatives are also why diaspora Bangladeshis send money to Bangladesh.
There is a gradual shift in allegiance from banks to money transfer service providers for the millions of Bangladeshi diaspora. There are many reasons for this phenomenon. Some of the reasons to make a money transfer to Bangladesh include:
When sending money to your loved ones in Bangladesh, you have to make considerations. Some of them are:
With all the incentives in place, various channels of sending money, and the minimal requirements to send and receive money in Bangladesh, there is no reason why you should not take advantage to build your investments and care for your loved ones.
Finding a specialist transfer provider that matches your needs can be time-consuming. We have narrowed down the list to three options to save you time and help you find a suitable company. Each of these companies is an excellent choice for sending money to Bangladesh.
Using Wise to send money to Bangladesh is an easy process. You can register for a new account within minutes, and the verification process is simple if you have your documents ready. The user interface is easy to understand because of the simple design. Also, hints are provided to help you decide between the options and how features work.
The low fees and competitive currency conversion rates are key strengths of using Wise. They match the mid-market rate for most currency pairs. Also, you can get physical and digital cards to pay for goods. Digital cards are free and allow you to start shopping right away.
Instarem provides simple and fast money transfers to Bangladesh. They charge low transfer fees of 0.25-1%, which means you will save money compared with most bank transfers. Also, you are guaranteed the best FX rates since they have a 0% margin policy.
The dedicated support team offers help 24/7 and in multiple languages. The transparency of the service is one of the reasons many customers have stayed with Instarem for years. Their loyalty is rewarded with the InstaPoints Reward Program, which provides redeemable points when sending money.
Sending money to Bangladesh with Azimo is free for the first two transfers. This gives you an excellent way to test out the service to see if it matches your standards. The payments are secure, and they are regulated by the FCA in the UK. Also, most money transfers are completed within 30 minutes.
The Azimo mobile app is on the highlights that allows you to send money while on the move conveniently. In addition, the app has been improved to reduce clutter and improve performance. Also, you can contact the customer support department from within the app.
Sending money anywhere else in the world is as easy as sending money to Bangladesh. So if you’re looking to send money to another country, here is the list of the most popular destinations.
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com