Options for sending money overseas
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Whether it’s sending emergency funds to an overseas traveller, or paying for school fees or overseas property, it can be very confusing trying to find the right way to send money overseas.
Below, we outline options.
Regular transfers to one country
A specialist FCA-authorised remittance broker such as Remitly could be your best option if you are planning regular payments from one country to another. And if you and your recipient are with the same bank, then it may also be worth sending money this way.
HSBC, for example, offers fee-free transfers for euros going to countries in the European Economic Area, or if you are sending money to another HSBC account.
Otherwise, HSBC charges fees of:
£5 online
£5 if arranged over the phone or in branch
£17 if through the post
The maximum you are allowed to send is £50,000 online or via mobile and up to £10,000 (or the currency equivalent) over the phone (£10 million if you’re a Premier customer). It can take up to three days to arrive.
Infrequent transfers under £5,000
FCA-authorised UK firms such as Wise consistently score well in online reviews for smaller international money transfers.
You will have to set up an account first and get your ID verified, which can take a couple of days.
Then all it takes is to pay in pounds sterling, normally via bank transfer, before you can get underway.
Transfers over £5,000
Specialist currency brokers are usually your best option if you need to send larger amounts of money — for example, if you are paying for property abroad. Again, using an FCA-authorised firm is key for security and peace of mind.
The best option is to gather exchange rate quotes from providers and compare them side by side.
Even a tiny difference in the exchange rate offered can have huge financial implications. A rate that is just 1.5% better on £250,000 will save you £3,750, for example.
If the recipient doesn’t have a bank account
Some brokers, such as Remitly, do offer home delivery of cash via a courier. So even if your recipient doesn’t have a bank account, there is still a way to send money overseas to where it needs to go.
You could also find out if there is a local branch where someone could pick up the money.
Providers like MoneyGram and Western Union (both FCA-authorised) allow this service, as long as the receiver can provide ID, the sender’s name and a unique transaction number.
What are the risks of transferring money abroad?
Sending money overseas to someone posing as a legitimate enterprise is a fast way to lose all your hard-earned cash, and we know the risks are rising.
Online fraud was up by 33% during the depths of the pandemic, according to Action Fraud.
Data from fraud-prevention group Cifas adds that there has been a 78% increase in under-21s being used as money mules.
This is where people, either knowingly or unwittingly, allow their bank accounts to be used to launder criminal cash, with out-of-work youngsters most at risk.
How do I choose the best international money transfer service to send money abroad?
The best international money transfer service for you may be different to the best one for your neighbour.
Everything depends on your situation: how often you need to send cash overseas, and how much you need to transfer.
If speed is of the essence, a spot deal may be your best option. For small, regular payments, you may want to lock in today’s rate with a forward contract.
Whatever your needs, always look for transparent services that show you exactly the fees you will be paying before you send money overseas, so there are no nasty surprises further down the line.
