For many educators in China, transferring their earnings back to their home country is a common necessity. Some teachers choose to do this monthly, while others prefer to access their savings only when their tenure in China concludes.

In a previous blog post, we highlighted the significant savings potential when teaching English in China. In this article, we will explore various strategies for converting your hard-earned Chinese Renminbi into your preferred currency, ensuring a seamless transfer to your home country.

Bank Transfer

One of the most traditional methods for transferring funds abroad is the reliable bank transfer. This method is known for its security and dependability, but it does come with certain drawbacks. Foreigners in China face a withdrawal limit of $500 before they need to provide additional documentation. For amounts exceeding this limit, proof of ownership and tax compliance is required, making it a time-consuming process for teachers wishing to send large sums home.

Additionally, bank transfers typically incur fees, including transaction and currency exchange charges, which can range from 2% to 4%. As a result, transferring substantial amounts via bank transfer can become quite costly.

Find a Friend

For those seeking a cost-effective and rapid solution, relying on a Chinese friend can be a game-changer. As previously mentioned, while foreigners are limited to sending $500, Chinese nationals can transfer up to $50,000 annually with greater ease. If you have a trustworthy Chinese friend or colleague, you can transfer your funds to them, who can then send it to your overseas account via bank transfer or Alipay.

Alipay, in particular, offers the convenience of direct transfers to your home bank account through the app, eliminating the need for a bank visit. To learn more about Alipay’s functionalities, check out our blog post on 5 Must-Have Apps When Moving to China.

Wise

A worthwhile alternative is Wise, an online platform known for secure and efficient cross-border currency transfers. Wise charges a modest flat fee of 88.99 RMB plus 0.68% of the transfer amount, making it a cost-effective choice compared to many other options.

To send money from your Chinese bank account using Wise, you will need to provide the same initial documentation required for a bank transfer. However, unlike traditional bank transfers, you only need to submit this documentation once for initial verification. Wise estimates that verification will take 1-2 days, after which you won’t need to submit documents for future transfers, which can be completed in as little as four hours. 

PayPal

Another option to consider is PayPal, which provides a relatively straightforward way to transfer money out of China. To utilize this service, you’ll need to create a Chinese PayPal account linked to your Chinese bank account. While it is convenient, PayPal charges a 2% to 3% international transfer fee, along with currency conversion fees, making it a pricier alternative.

Fly With Funds

If your time in China has come to an end, carrying cash on your flight is a straightforward option that can save you on international transfer fees. However, be mindful of the legal limits on cash you can take out of China. Individuals leaving with over 20,000 RMB must declare this amount to customs. Given that many teachers save more than this over a year, this method is best suited for smaller sums.

ATM Withdrawal

Upon returning to your home country, if you still have funds in your Chinese account that you’d like to access, you can withdraw cash from an ATM using your Chinese bank card (commonly known as a UnionPay card). Some major banks, such as Barclays in the UK, allow withdrawals from their ATMs, although locating specific ATMs may be challenging. Additionally, withdrawal limits might restrict access to larger sums, making this method suitable primarily for small cash withdrawals.

Conclusion

In summary, there are several channels available for getting your money out of China, each with its own advantages and limitations.

The quickest way to transfer your money is by having a trusted Chinese friend handle the transfer to your home account. It’s hassle-free, requires no initial paperwork, and is cost-effective. However, ensure that you choose someone reliable.

Looking ahead, Wise may emerge as a top choice. While it does require some initial documentation, it is an official, trustworthy, and cost-effective option, with fast transfers once verified. It’s worth noting that Wise has only recently introduced this service for transferring money out of China, so its long-term reliability remains to be seen.

While not the fastest or cheapest, bank transfers offer a secure and dependable method. Just make sure your teaching contract is legitimate and taxes are correctly paid to ensure a smooth process. Having proof of compliance will facilitate sending money home via bank transfer and simplify your overall experience of getting funds out of China.