The three routes
| Route | Typical cost | Time | Note |
|---|---|---|---|
| Bank transfer (SWIFT) | Fee plus exchange margin | 2–5 days | Better for larger amounts |
| Authorised MTO | Fee, varies by agent | Minutes to hours | Cash collection possible |
| Licensed digital service | Low fee, transparent rate | Hours to 2 days | Usually cheapest for small and mid amounts |
| Informal channels | ❌ | — | Illegal, no record, risky |
Where the cost actually hides
People compare fees, but the real cost is usually in the exchange rate. A service advertising "zero fees" may take a 3% margin on the rate, while one charging a small fee gives close to the mid-market rate — the second is cheaper.
The right way to compare: ignore the fee and compare what the recipient receives. Put the same amount (say EUR 200) into each service's calculator and see which delivers the most taka. It is the only comparison that cannot mislead.
The advantage of legal channels
Bangladesh pays a cash incentive on remittance arriving through legal channels (the rate changes from time to time). So the legal route gives the recipient a better rate and the incentive.
On the receiving side you need the correct name (as on the NID), account number and branch, or a mobile financial service number. Even a small name mismatch stops the transfer, so check the spelling against the NID before your first transfer.
Tax and records
Sending your own legally earned income home is entirely normal and attracts no additional tax. Two practical points:
- 1Keep the receipts — for large or regular transfers a bank may ask about the source, and your payslips and contract answer it
- 2Declare your income — part-time earnings should be properly declared and taxed where you work. Beyond the legal obligation, declared income is what supports your residence permit renewal and any later permanent residence application
Why informal channels hurt you
Set the legality aside; as a student there are three practical problems:
- 1No evidence — if the money is lost you have no recourse
- 2No income record — yet permit renewals and future visas ask for financial history
- 3A weak banking history — which matters in Europe for credit, tenancy and settlement applications
In short: informal channels may save a little money and cost you the record, which becomes far more valuable a few years later.
One piece of practical advice
Feeling pressure to send money in the first year is natural — the family invested and you want to repay it. But the honest advice is: build your own safety buffer first.
Unexpected costs in Europe (dental work, a broken laptop, a sudden move) take several hundred euros quickly, and with nothing in reserve the only option is borrowing. Start regular transfers once you have about three months of expenses saved — that is not avoiding responsibility to your family, it is the way to meet it sustainably.
Official sources — check for yourself
Rules and figures change. We review these articles periodically and show the date above, but always confirm the current requirement with the official source before you act on it.
Common questions
What is the cheapest way to send money to Bangladesh?+
It depends on the amount, but licensed digital remittance services are usually cheapest for small and mid-sized transfers. Compare on what the recipient receives rather than the fee — most of the cost hides in the exchange margin.
Is there an advantage to using legal channels?+
Yes. Bangladesh pays a cash incentive on remittance arriving through legal channels, so the recipient gets both a better rate and the incentive — and you build a record of your own income, which supports permit renewal.
Should I start sending money in my first year?+
Usually build a buffer of about three months of expenses first. Unexpected costs in Europe run to several hundred euros quickly, and with nothing in reserve the only option is borrowing.
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