Comprehensive Guide on How to Send Money from the UK to India, choosing the right money transfer company for UK Residents, payment mode
In an increasingly globalized world, one of the most pressing financial concerns for those living abroad is how to efficiently transfer money back home. When I moved to the UK in 2010, the process was far from straightforward. But now financial landscape has evolved since then. In this article, we’ll explore the best methods for transferring money from the UK to India and beyond, ensuring that your hard-earned cash reaches its destination without unnecessary hassles.
Understanding the Need for International Money Transfers
As a non-resident Indian (NRI) in the UK, there are numerous reasons to send money back to India – whether it’s for business purposes, housing payments, supporting family members, or marking special occasions. However, navigating this financial terrain often presents hurdles, including unfavorable exchange rates, high fees, and the inconvenience of traditional banking systems.
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Agenda for This Article
- Different Modes of Payment: We’ll begin by examining the various methods available for sending money online from the UK to India.
- Safety of Online Money Transfer: We’ll discuss the importance of choosing FCA-regulated services for secure transactions.
- Comparison of Money Transfer Companies: We’ll compare two prominent remittance companies, Wise and Eliro, explaining why they stand out in the market.
- Fees for Sending Money: An overview of the fees associated with sending pounds from the UK to India.
- Transfer Speed: Understanding the speed of money transfers and which companies offer swift transactions.
- Limits on Sending Money: Exploring any legal limits on the amount of money you can send from the UK to India.
Different Modes of Payment
If you’re living in the UK and you need to send money to India, there are a few different options available to you.
Money transfer through Banks
The most common method for transferring funds from the UK is via banks. However, traditional banks often offer less favorable exchange rates, charge high fees, and have slower processing times compared to remittance companies. It’s important to note that even banks that claim to offer fee-free transfers may have hidden fees. So banks typically have higher exchange rates and fees than other money transfer providers.
Money transfer companies
Remittance companies, on the other hand, have emerged as a more efficient option. These non-bank entities leverage networks of agents and banks to facilitate cross-border transactions. They typically provide competitive exchange rates, minimal fees, and faster transfer times (usually within 24 to 72 hours).
Some of the most popular money transfer companies include:
- Wise or transferwise
- Remitly
- WorldRemit
- MoneyGram
- Western Union
Best way to choose or Compare Money Transfer Companies
When choosing a money transfer company, it’s important to compare the following factors:
- Exchange rate: The exchange rate is the amount of Indian rupees you’ll get for each pound you send. The higher the exchange rate, the more rupees you’ll get.
- Fees for Sending Money: Money transfer companies typically charge a fee for their services. The fees can vary depending on the company and the amount of money you’re sending. When sending pounds from the UK to India, it’s essential to consider the fees associated with different service providers. While some companies may charge higher fees, they might also offer more favorable exchange rates. Evaluating these factors is crucial to finding the most cost-effective solution for your specific needs.
- Transfer speed: The transfer speed is the amount of time it takes for the money to arrive in the recipient’s account. Some companies offer instant transfers, while others may take a few days. For urgent money transfers, certain remittance companies like Eliro, MoneyGram, Remitly, Orbit Remit, and WorldRemit can process transactions in less than an hour. The speed of transfer can be a critical factor when time is of the essence.
- Limits on Sending Money- Both the UK and India do not impose legal limits on the amount of money you can send or receive. However, individual remittance providers may have their own daily or monthly limits. Be sure to verify the limits of your chosen service.
As an example I have compared a few of the websites based on the assumption that the current exchange rate is for each pound you will get 101.14 Rupees.
A table is created to compare each of the sites without any offers and the rate that you may get. Please note:- rate changes each minute and I would recommend checking first with each platform as there may be changes based on market conditions.
| Company name | Exchange rate | Transfer speed | Trustpilot rating | My recommendation |
| Wise | Rs 100,440 | 0-2 days | 4.2 | I am using Wise as of now and am very satified with the services |
| Remitly | Rs 100,460 | 0-2 days | 4.1 | I have used remitly as an offer when there was no fees on first transfer and you all can try it to take the offer |
| Worldremit | Rs 99,948 | 1-2 days | 4.1 | Only used once when there was a cashback of £40, rates bit low and again can be used if there are offers |
| XE | Rs 100,500 | 0-3 days | 4.3 | Used for a couple of times and is a good service, I use XE to check the daily rate. |
| Western Union | Rs 100,750 | 0-2 days | 4 | First transfer is free and can be used for one time or in case of any offers |
Overall, I would recommend wise from a long-term side or remitly, however, I would advise using other platforms as well to gain the offer.
How to send money through a money transfer company
To send money through a money transfer company, you’ll typically need to create an account and provide the recipient’s bank account information. You can then send the money using your debit or credit card or bank transfer.
Tips for sending money to India
- Compare exchange rates and fees from different money transfer companies before you choose one.
- Send money during off-peak hours to get the best exchange rates.
- Consider using a money transfer company that offers instant transfers if you need the money to arrive quickly.
- Be aware of any limits on how much money you can send or receive.
Safety of Online Money Transfers
Before entrusting your money to any remittance company, it’s crucial to check whether they are FCA-regulated. The Financial Conduct Authority (FCA) in the UK regulates financial organizations, ensuring the protection of clients’ assets and financial data. Choosing an FCA-regulated company provides an added layer of security for your funds.
Recommendations
Here are some practical recommendations based on personal experience:
- Timing Matters: Always transfer money when the pound exchange rate is favorable to maximize the amount you receive in India.
- Two-Way Transfers: Consider using services like Wise for sending money from India to the UK, simplifying the process and avoiding unnecessary visits to physical banks.
- Shop Around: Take advantage of the plethora of options available to find the most competitive rates and fees.
The landscape of international money transfers has evolved significantly, offering UK residents more efficient and cost-effective options than traditional banking methods. By carefully considering factors like exchange rates, fees, and transfer speed, you can make informed choices and ensure that your hard-earned money reaches its intended destination without unnecessary financial losses or hassles.
