Bangladesh to UAE Remittance: How to Avoid Bank Fees

For Bangladeshi workers in the UAE, sending money home is an essential part of supporting their families. However, traditional bank transfers and remittance services often come with high fees, hidden charges, and unfavorable exchange rates. If you’re sending money to Bangladesh regularly, finding ways to minimize these costs can save you a significant amount over time.

This article explores the best ways to transfer money to Bangladesh while avoiding excessive bank fees and ensuring your hard-earned money reaches your loved ones efficiently.

Why Do Banks Charge High Fees for Remittances?

Banks and traditional money transfer services impose multiple types of fees on international remittances. Here are some of the most common charges:

1. Transaction Fees – Banks charge a flat fee or a percentage of the amount you send. The fee varies based on the bank, transfer method, and country of origin.
2. Exchange Rate Markups – Banks and money transfer services often provide exchange rates lower than the actual market rate. This means you lose money in the conversion process.
3. Intermediary Bank Fees – If your transfer goes through multiple banks before reaching Bangladesh, each intermediary may deduct a fee from the total amount.
4. Receiving Bank Charges – Some Bangladeshi banks also charge a fee when processing international transfers, further reducing the final amount your family receives.

Avoiding or minimizing these fees can make a big difference, especially for those who send money frequently.

Best Ways to Send Money from UAE to Bangladesh Without High Fees

There are several strategies to reduce remittance costs when sending money from the UAE to Bangladesh.

1. Use Online Money Transfer Services

Digital money transfer services are often cheaper than traditional banks because they operate with lower overhead costs. Here are some popular options:

• Wise (formerly TransferWise) – Offers low fees and the real exchange rate with no hidden markups.
• Remitly – Allows you to choose between lower fees with slower transfers or slightly higher fees for instant transfers.
• WorldRemit – Supports mobile wallet and bank deposits with competitive rates.

Online services typically charge lower fees than banks and provide transparent pricing before you send money.

2. Choose a Service That Offers Mid-Market Exchange Rates

The exchange rate significantly affects how much money your family in Bangladesh receives. Some services advertise "zero fees" but compensate by offering unfavorable exchange rates. To avoid this, choose a remittance provider that offers mid-market rates, which are the same as real-time forex rates.

Websites like Wise, Revolut, and Xe Money Transfer provide exchange rates that match the market rate with no hidden markups.

3. Use Mobile Wallets Instead of Bank Transfers

Mobile wallets are an increasingly popular way to send and receive money in Bangladesh. Many Bangladeshi workers in the UAE use services like:

• bKash – One of Bangladesh’s most widely used mobile money platforms.
• Rocket – A digital banking solution from Dutch-Bangla Bank.
• Nagad – A government-backed mobile financial service.

Sending money to a mobile wallet is often faster and cheaper than using banks. Your family members in Bangladesh can withdraw cash directly from agents or use the balance for payments.

4. Send Money in Larger Amounts Less Frequently

Banks and money transfer services often charge a flat fee per transaction. If you send small amounts multiple times, you end up paying more in fees overall. Instead, consolidate your remittances into fewer, larger transfers to reduce the total cost.

For example, instead of sending 500 AED every week, consider sending 2000 AED once a month to minimize transaction fees.

5. Look for Special Offers and Discounts

Some remittance services offer promotional deals for first-time users or recurring customers. Before sending money, check for:

• First-time transfer bonuses (e.g., free first transfer).
• Referral rewards (earn credit for inviting friends).
• Seasonal discounts (lower fees during major holidays like Eid).

By taking advantage of these deals, you can reduce or even eliminate transfer fees.

6. Avoid Using Credit Cards for Transfers

Using a credit card to fund your remittance often results in additional charges, including cash advance fees and higher exchange rate markups. Instead, use a bank transfer, debit card, or direct payment from your salary account to avoid extra costs.

7. Use Cryptocurrency for Remittances (For Advanced Users)

Some Bangladeshi workers in the UAE are turning to cryptocurrency-based remittance solutions to avoid bank fees. Platforms like Binance Pay, BitPesa, and Paxful allow users to send crypto (such as USDT or Bitcoin) to their families, who can then convert it to Bangladeshi Taka at local exchanges.

This method can be highly cost-effective, but it requires knowledge of crypto trading, security, and conversion processes.

Case Study: How One Worker Saved Over $500 in Fees

Mohammad, a Bangladeshi construction worker in Dubai, used to send money home every two weeks through a traditional bank. Each transfer cost him 20 AED in transaction fees, and he also lost money due to poor exchange rates.

After switching to an online remittance service with mid-market exchange rates, he now pays only 5 AED per transfer and gets better conversion rates. Over a year, he saved more than 500 AED in fees, which he now uses to support his family better.

Comparison of Different Money Transfer Methods

Final Tips for Sending Money to Bangladesh

1. Always compare exchange rates before choosing a remittance provider.
2. Use online or mobile-based services to reduce fees.
3. Send money in bulk rather than frequent small transactions.
4. Check for promotional offers to take advantage of free or discounted transfers.
5. Consider mobile wallets for fast, fee-free transactions.

By applying these strategies, you can ensure that more of your hard-earned money reaches your loved ones, rather than being lost to unnecessary fees.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Remittance services, fees, and exchange rates are subject to change. Always compare options and consult a financial expert if needed before making any money transfer decisions.