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Send Money To Bangladesh

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.

Updated: 26/03/2022
Read time: 20 minutes
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Understanding the economy of 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.

How To Send Money To Bangladesh

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.

Step 1

Find a Trusted Provider

Our comparison table for sending money to internationally looks at your specific transfer needs to and from any country in the world. Use this to find a provider that provides the best all-round service for you.
Step 2

Register with your chosen provider

Most providers will be completely free to sign up to, simply requiring your name, address and contact information. In most cases, you’ll also need to upload a picture of a valid photo ID to verify your identity.
Step 3

Transfer Money

As soon as you're ready, you can start sending money online.

Ways To Send And Receive Money In 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.

Sending Money To Bangladesh
Receiving Money In Bangladesh

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.

Bank Wire Transfers

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 Transfer Services

Money transfers from the Gulf Cooperation Council (GCC) countries to Bangladesh have traditionally been through banks. However, money transfer service providers such as MoneyGramWestern UnionXpress Money, TeeMoney, XoomWorldRemitWise, 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).

Bank Transfer

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.

Cash Pickup

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.

Mobile Money

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.

What’s Needed to Send Money to Bangladesh

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.  

  • Your government-issued I.D. If you are sending from the United States, a social security card or passport can suffice
  • The amount you want to send
  • The name of the recipient as it appears on their official documents
  • The phone number of the recipient and their address
  • If you are transferring money directly to the recipient’s account, you’ll have to provide the banking details: bank name, branch name, account number, and SWIFT or BIC code.

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.

Common Reasons For Sending Money to Bangladesh

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.

Household Consumption

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.

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Debt Repayment

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.

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Investment

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.

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Education

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.

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Social Contribution

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.

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Why Send Money With a Money Transfer Service? 

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:

Ease of Setup

When sending money using MTOs, setting up is very simple. You need your email, phone number and of course your name to signup for an account. Once you are up and running, you can pay for your transfer using a bank debit, bank transfer, debit card or credit card and transfer to your loved ones on the website, at a store or through a mobile app.

Favourable Exchange Rates

MTOs use mid-market rates when translating source currencies to the Bangladesh Taka. These rates are real-time and transparent, enabling you to send more to your loved ones for less. Most providers never add margins to their exchange rate pricing.

Low Transaction Fees

Money transfer service providers leverage the large volume of transactions they undertake to charge their customers low fees. Competition and investment in superior technologies have also made many MTOs to revise their prices downwards to the benefit of customers. With as little as $3.99 you can send money to Bangladesh.

Multi-Currency Support

Providers such as Western Union and MoneyGram are present in more than 200 countries and territories. Xoom has thousands of locations around the globe supported by the strong PayPal network. Whether you are sending from Kuwait, Qatar, the United States, the United Kingdom, or Canada, changing the source currency to Bangladesh Taka is a breeze.

Secure Transfers

Money transfer providers are required to invest in superior, identify masking and multifactor authentication technologies by the Financial Conduct Authority. These measures help to protect your money and other information from hackers.

Speed of Transfers

The transfer technologies and payout-network partnerships providers have, enable them to send money much faster compared to banks. Within minutes or in less than an hour, it is possible for you to send money to your family and relatives. Speed is of the essence during emergencies.

Things to Consider When Sending Money to Bangladesh

When sending money to your loved ones in Bangladesh, you have to make considerations. Some of them are:

  • Strong Economic Growth – Led by the agricultural industry, Bangladesh’s economy recorded the highest growth among 26 countries for the past decade. From 2009 to 2019, the country has recorded a 188 percent cumulative growth. When sending money for investment, the agricultural sector has the best returns.
  • Taxation – Non-resident Bangladeshis are not charged capital gains tax at an individual level. This measure helps to accumulate financial asset holdings. They also enjoy a 10% rebate on investment allowance targeted at security investments.
  • Stock Market Incentives – Bangladesh rolled out some of the most liberal policies to attract Bangladeshi diaspora capital. Two of the most outstanding incentives are: 
    • 10% initial public offering (IPO) quota reserved for Bangladeshis abroad
    • Bangladeshis in the diaspora can trade in the country’s secondary market

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. 

Top 3 companies for sending money to Bangladesh

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. 

Wise

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

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. 

Azimo

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. 

Your Questions Answered

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Looking to Send Money Somewhere Else? 

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 Merry

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