In this article, we’ll look at the available options to transfer money from India to the UK.
This article is one in a series of free articles focusing on international banking and related services for Non-Resident Indians (NRI).
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Transfer Money From India to UK
- Can I Send Money to UK Bank Account From India?
- Factors to Consider Before Sending Money to the United Kingdom
- Frequently Asked Questions
- Ready to Explore Your Options?
Transfer Money From India to UK
To transfer money from India to the UK, you can consider one of the following four options: money orders, international transfer services, bank transfers, and money service businesses. Importantly, each of the available options has different costs and different pros and cons that should be considered before deciding which option is best.
Can I Send Money to UK Bank Account From India?
Yes, you can send money to a UK bank account from India. There are a number of ways that a transfer from India to the UK can be sent. However, one of the fastest and most affordable ways to complete transactions from India to the UK is by using international transfer services. That said, the most immediate option that most people have access to is usually an international bank transfer.
In addition to being readily available to most individuals, international bank transfers typically do not face the same constraints as international transfer services or money service businesses. Additionally, while money orders do offer more flexibility, international bank transfers tend to be a more affordable transfer option and ensure that the transfer is received in the intended bank account.
Of course, if you prefer to explore other options, you can use any of the international transfer methods mentioned above to send money from India to the UK. This includes sending money orders, international bank transfers, international transfer services, and money service businesses.
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Factors to Consider Before Sending Money to the United Kingdom
Before sending money to the United Kingdom, you should consider the following factors:
- Transfer fees
- Foreign exchange rate
- Applicable taxes
- Time it takes for the transfer to arrive
- How secure is your chosen transfer method
- Whether you require flexible delivery options
- Do you have access to the desired transfer method
That said, out of all these factors, the most concerning for individuals sending money from India to the UK tend to be the costs. So, let’s take a closer look at the various costs involved now.
Cost of International Money Transfers
The cost of sending an international money transfer can include: (1) transfer fees, (2) foreign exchange fees, (3) receiving fees, and (4) search fees. That said, the specific fees charged on any given transfer depend on the method used for sending the funds. But also, on the specific financial institution sending the funds and the receiving bank.
Let’s take a closer look at each of these now:
The vast majority of banks charge fees for initiating international transfers. In most cases, this fee is either a percentage of the value sent or a fixed fee for transfers within certain brackets. That said, most banks cap the total they charge for sending international transfers. Importantly, when a bank does not charge transfer fees, they are typically making money elsewhere. Either through exchange rates, account maintenance, or other forms of revenue.
When sending international transfers, it is common to send a transfer in one currency and receive the transfer in another currency. Unfortunately, this can often result in unfavorable exchange rates being used to convert the funds. In fact, in many cases, international transfer services that specialize in multi-currency accounts are much more attractive when sending transfers for this reason alone. However, depending on the bank that is sending the wire, it is possible to secure preferential exchange rates.
Many banks charge fees for incoming transfers. The specific amount charged will depend on the bank. However, in most cases, banks charge between USD 10 and USD 35 to receive an incoming international transfer.
Search fees do not apply to every transfer. In fact, they rarely apply. However, when sending international transfers to different countries, it is common that a number of different financial institutions will be involved in the transfer. In the process of sending funds, transfers can sometimes get “lost”. In many cases, this can occur when incorrect information is inserted by the person sending the transfer. When this happens, a search needs to be initiated, which will result in fees being charged to the account holder sending the transfer.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to transfer money from India to UK. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Much Money Can I Transfer From India to UK Tax Free?
The Reserve Bank of India (RBI) allows for USD 250,000 to be sent abroad each year under the remittances scheme. However, there is a 5% tax charged on any transfers above approximately USD 8,000.
Which Is the Best Service to Send Money From India to UK?
The best service to send money from India to the UK depends on your priorities. For example, if you are sending small transfers and want to reduce fees, then an international transfer service like Wise may be suitable. Alternatively, if you are sending large transfers and prioritize security, then an international bank transfer is probably best. Lastly, if you want the recipient to have flexibility in terms of how the transfer is received, you may want to consider a money order service like Western Union.
What Is the Cheapest Way to Send Money to UK From India?
The cheapest way to send money to the UK from India is usually an international transfer service like Wise or an international bank transfer. That said, the exact cost will ultimately depend on the amount of money being sent. But also, on the transfer fee charged and the foreign exchange rates being applied to the transfer.
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