Pros And Cons Of Wiring Funds To A Family Member

If you need to send money to a family member, there are a few different ways to do so. One approach is to use a wire money transfer, which is a method by which a service removes funds from your bank account and deposits them in your recipient's bank account. (If they don't have the account, they may be able to pick the money up in cash from the transfer company's local office.) Wire transfers, like all money transfer options, have both pros and cons--which you should consider before you decide to use this method.

Pro: Wire transfers are fast.

In many cases, wire transfers can be conducted instantly. This enables you to call your recipient and have them head to the bank while you are still working on sending the funds. There's no waiting, which is good news if your recipient needs the money for an emergency or to pay a bill that has come due. Other payment options, like mailing a check or even using an online money handling service, take a lot longer.

Con: Wire transfers require you to give out your bank account number.

Whenever you give your bank number out, you need to be concerned about security. You can minimize this con by only working with a very reputable money transfer company. This is important not only for your own safety, but also for the safety of your recipient, since you'll be providing their banking information, too. Never work with a shady company without a long track record. 

Pro: Wire transfers can be conducted to and from almost anywhere.

Most of the large companies that offer wire transfer services do so across the nation, and in some cases, even overseas. On the contrary, your bank may not have locations where your recipient lives, so it may be tough to just open accounts at the same bank and transfer money to them directly. As long as the money is deposited in their account, it does not even matter if the wire transfer company has a branch near your recipient's home.

Con: Wire transfers come with a fee.

You will pay a fee for this service. It is usually only a few dollars, but that's more than you would pay to mail a check or use an online payment service. You do get faster service and convenience for that fee, but the cost is something to keep in mind when weighing your choices.