How to send money from UK to USA - A comprehensive guide
How does international money transfer from the UK to the USA work?
Sending money from the United Kingdom to the US is a straightforward process, whether you are sending it via a bank transfer or using a specialist international money transfer service. The main thing to consider when sending money from the United Kingdom to the US is how much time you want to spend on making the transaction. You will also need to decide whether or not you want to take advantage of any special offers that may be available at the time.
If you want something quicker, then a specialist money transfer service such as Atlantic Money's international money transfer app might be more suitable for you.
What is the cheapest way to transfer money from the UK to the USA?
The best way to send money to the USA, and best international money transfer services depends on your personal situation.
If your money transfer use case is a small amount of money, or if you don't have much choice about the timing of your transfer, then using a bank transfer in-house may be the cheapest option. However, you'll pay higher transfer fees and a less favourable exchange rate. Both kinds of transfer fees add up with wire transfers originating from the United Kingdom.
For larger sums or where speed is more important, we'd recommend to transfer money to the USA with a specialist money transfer service provider listed below:
Atlantic Money
Atlantic Money offers fixed fee transfers, with no markup on currency conversion.
Atlantic Money is the first of the money transfer companies that allows you to send money to the USA with a bank transfer with at the mid-market exchange rate, for a low flat fee of £3, and no hidden fees.
The cheapest service for larger transfers.
Compared with most money transfer services, Atlantic Money is the cheapest way to send money to the USA for large bank transfers above £1,000.
You can fund your transfer with a bank transfer conveniently from your United Kingdom bank account, and after entering the recipient's US bank account details, you'll be ready to send money to the USA.
Major currency support
Atlantic Money also helps you save money when you send money overseas to other major currencies with competitive exchange rates, and provides the first transfer free, and a referral fee for referring friends.
Wise
The Wise exchange rate quoted is typically the mid-market exchange rate, making it one of the most competitive for international money transfer.
Wise has quickly become one of the most popular money transfer services. The company is based in London, but it can be used by anyone who wants to send money internationally.
Payment Methods
Wise accounts are flexible to your payment method, supporting bank transfer, credit or debit card when you send money online. Bank transfers will typically take longer, but you typically get the best money transfer rates. Wise's local bank account also provides you with a bank account number, and other bank details required to receive local payments. Wise also recently integrated into Google Pay to power many of its global transactions.
Fees
Wise charges a flexible fee of around 0.4 to 0.6% when you send money from the United Kingdom, which makes it extremely competitive with other online providers for transactions below £1,000.
If you want to transfer larger amounts, there will be no additional fees but the transaction will become quite costly as you pay more the more you send.
MoneyGram
MoneyGram can be used in over 200 countries around the world and operates as a money transmitter in more than 100 currencies.
MoneyGram one of the older international money transfer providers that allows you to send payments around the world with higher transfer fees than some of the other providers. It's best used when you need to send small amounts of money quickly and in cash, as it offers fast delivery times and low fees.
Using Moneygram
Sending money with MoneyGram from the United Kingdom is also incredibly simple — just choose how much money you want to send and where it needs to go, then enter your recipient's details into their online form.
They'll provide you with a reference number which you can use to track your payment's progress on their website or via their mobile app.
MoneyGram supports cash pickup, if you don't have a recipient's bank account details and has a slightly more antiquated online account.
Currencyfair
With Currencyfair, you can send money directly from your own bank account via bank transfer or use your debit card.
CurrencyFair is a more modern money transfer specialist in the United Kingdom that offers online money transfer in an efficient and cost-effective way with a generally competitive exchange rate.
CurrencyFair offers a number of benefits for sending money to the USA, such as a transparent fee structure with no hidden fees, so you know what transfer fees you’ll pay when you transfer money.
Revolut
Revolut provides more competitive exchange rates to the market with a global spending debit card.
Revolut is a digital bank that allows users to store, spend and transfer money at the interbank exchange rate.
The Revolut Platform
The digital banking platform offers competitive foreign exchange rates and a transparent but complicate fees structure. Since bigger transactions are getting quite costly, Revolut is typically used for smaller transfers. It also provides local bank account details in a number of countries. Revolut also offers a currency trading platform for holding multiple currencies.
Mobile App
The United Kingdom-based bank account provider also has a mobile app that allows users to manage their finances and debit card spend on the go.
HSBC
HSBC is one of the world’s largest banks, and offers bank accounts in many international markets
Money transfer
HSBC's cash transfer service lets you send money using an online interface or an app on your mobile device. You can choose to send cash to someone else's account, or have HSBC deposit it into your own account instead.
Fees
HSBC charges a relative high fee for sending money overseas – and lacking transparency. Their final cost consists of upfront transfer fee (up to 17 GBP) + exchange rate markups + third party fees.
The bank also offers free of upfront free transfers when you use its own currency card, but it’s not necessarily a low-cost way to send money, once you compare the exchange rate offered.
Bank account
HSBC doesn't require its customers to have existing bank account details before they start using its service – so there's no need to commit yourself to opening a new bank account just so that you can send money internationally.
Instead, HSBC customers can use the bank's online banking service by setting up a separate 'cash card' and using this as their source of funds when sending money overseas.
Western Union International bank
Western Union is one of the oldest and largest money transfer agents.
Western Union international limited is a money transfer service that lets you send money to anyone in the world. It’s available online, by phone and at more than 355,000 agent locations around the globe.
Payment Methods
You can use your debit or credit card at an agent location or online, or send funds directly from your mobile device.
Cash Pickup.
You can pick up cash at one of our more than 150,000 agent locations in more than 200 countries and territories around the globe.
Cash Transfer. If you prefer not to go to an agent location, you can transfer funds directly from your bank account into another person’s bank account – anywhere in the world!
Can I send money from UK to US via PayPal?
PayPal is famous for its ecommerce payment tools and wallet.
If you want to send money from the United Kingdom to US, you can use PayPal to do it. For this, you need a PayPal account and an account with your chosen recipient.
PayPal allows you to send money from your bank account via bank transfer or credit card (or both) to someone else's bank account or PayPal balance. The recipient doesn't need a PayPal account – they only need a bank account in their own name in the country where they live.
PayPal charges a fee through mark-ups on the exchange rate, which can differ depending on the selected currency. Be aware, Paypal international fees are typically much higher than other providers.
How much money can I transfer to my friend in USA?
You can generally transfer as much money as you like for personal use, but it is important to keep in mind that there may be restrictions on the amount of money you can send depending on the banking institution. The maximum amount of money that you can send abroad sometimes depends on where it's going and who it's from. There are limits set by each country's government but these vary depending on which country you're sending from and where it's going to.
For example, Barclays allows customers to transfer £25,000 per month for free. If you want to send more than this amount, then you will have to pay a fee of £10 for every £10,000 transferred over and above the £25,000 limit.
Other banks such as HSBC or Lloyds Bank charge a flat rate of £30 for every £50,000 transferred.
How much does it cost to send money from UK to USA?
Typically, using a bank transfer versus a credit or debit card will help you save on transfer fees, because the money transfer company will charge differently by payment method. Online money transfers typically also cost less than using a money transfer provider over the phone.
Money transfer companies that provide you with a bank account that you can send money from sometimes provide a better exchange rate as well, but may charge a delivery charge when you send money.
For transferring money in smaller amounts in the United Kingdom, the best money transfer services online are typically Wise and Revolut, as they provide low fees and a competitive exchange rate.
For larger online money transfers, you'll typically fund with a bank transfer, and need to be careful to check your exchange rate and transfer fee, as they can add up. Services like Atlantic Money can help transfer money abroad while keeping the fees low as it is the only international money transfer provider with a truly fixed fee. If you can't fund your transfer with bank transfers, then its best to check out other alternatives like CurrencyFair and Wise, and compare their currency exchange offerings.
Always to be sure to check your bank statement, which all financial institutions are required to provide to you to make sure you understand your total cost of moving money, and any exchange rate fluctuations which may impact the amount received.
Should I use a bank transfer to send money to the USA?
It depends on how much money you want to send, and for what purpose. If it’s just a small amount then it might be better to use an alternative method such as PayPal or Western Union, but if you want to send more than £2000 then a bank transfer is probably your best option.
Why is it better? Because it’s the cheapest, fastest and most secure method of sending money overseas. Banks don’t charge much for international money transfers, and if you have an account with the same bank in both countries then there could be no transfer fee at all.
Do I have to pay tax on money transferred from overseas to US?
Most of the times, you don't have to pay any tax on the money transfer from overseas. However, there are some countries which impose taxes on the money transferred by individuals in their country.
If you are transferring money from the United Kingdom to the US, there are two main types of taxes that you need to be aware of:
Income tax: When you transfer money from the United Kingdom to the US for personal use, it is treated as income in the US and may be subject to income tax. In most cases, this will occur when you make a lump sum money transfer or when your bank makes regular transfers.
Capital gains tax (CGT): If you have invested in stocks or bonds or other investments and these increase in value, then any profit made on those investments could be subject to CGT when you sell them.
How can I transfer money from the UK to the USA?
Money transfers between the United States and England were often longer and more complex than they were. Luckily, technological advances have made it safer and more convenient. The processing now uses wire transfer.
A wire transfer is an electronic method by which a customer transfers funds to a bank account by connecting with the recipient bank or other bank to transfer their money. The money is sent to the U.S. by SWIFT.
Exchange rates for sending money to the USA
The exchange rate reflects the difference between the United Kingdom pounds value and the foreign currency, the dollar here. Different transfer providers charge a different transfer fee for conversion of your money into currency. In addition, if one website claims free services, they often mean that it just gives you better exchange rates on the currency.
In short, poor exchange rates mean you give them more in pounds than the actual amount you get. In other terms, exchange rates are sometimes called “hidden fees” for transfers.
USD/GBP exchange rate trends
Like most currency exchange rates in existence, the US Dollar is affected by supply and demand variations. Exchange rate fluctuation is sometimes a result of shifting the state's economy.
Other factors that influence rates are change in politics, stability and speculation, where traders are buying or selling a currency if they believe that trend will change.
How do exchange rates work in money transfer?
The exchange rate is the price of one currency relative to another, and can be expressed as a market exchange rate or a mid-market exchange rate.
For example, if the market exchange rate for US dollars against pounds sterling is 1.5, this means that £1 will buy you $2.
A lower exchange rate means your money goes further; so for example if the mid-market exchange rate for US dollars against pounds sterling is 1.4, this means that £1 will buy you $2.05 (1/0.95 = 1.05).
What is a good money transfer exchange rate?
In general, the British Pound has a higher value than that of the U.S. dollar. However, currency prices and economic conditions can greatly affect foreign exchange rates. It is therefore hard to know how much you could spend every day.
When the currency is strong, a typical $1.20 per £1 is available. It is important that the exchange rates be comparable to those of a typical mid-market exchange rate. It is the point where two currency pairs can be traded for the same value.
How does Cash Pick Up work?
Cash Pick Up is a great option for people who want to send money to the US and have it delivered as Cash. Western Union and Moneygram are the two of the largest global providers of this service. It's available for amounts up to $2,999 and you can use it online or at any Cash Pick Up store partnered with a money transfer company.
To send money using Cash Pick Up, follow these steps:
Visit the online money transfer website (or download the mobile app). Enter your recipient's address and the amount you want to send. Choose your payment method. Enter your United Kingdom bank details and confirm your payment. Your recipient will receive their cash within 24 hours.
If you're sending money online, you'll receive an email when your recipient has been paid.
Cash pick up considerations
You'll want to verify that the agent location is in a convenient location. For example Western Union and MoneyGram offer many locations in the UK and USA for a convenient experience.
If you are not using bank accounts to fund your cash pick up, you'll need to consider travelling with physical cash at your own risk to the store.
When you pick up cash there might be additional fees, so it's important to consider both transfer fees that might apply: Cash pickup fees, in addition to transaction fees.
Best ways to stay safe when transferring money abroad
Transferring your money abroad can be a stressful experience. There are so many things to think about, from exchange rates and fees to the safety of your funds.
However, there are ways you can make this process simpler and smoother, and ensure that your money is transferred safely. Here are some of our top tips for sending money abroad:
Compare and contrast transfer options
It's important to compare different services before making a choice. Not all companies are equal when it comes to speed, cost or reliability. You should also remember that you're not limited to one service – you can use several methods in order to get the best deal overall.
You'll also want to look at how much each firm charges in fees for exchanging currency. This can vary quite dramatically between providers, so it pays to shop around for the best deal on this front too. It's worth noting that some firms offer free transfers if you meet certain criteria (for example if you transfer more than £50k).
The best way to send money from the UK to the USA is through a bank transfer. Banks offer a quick, safe and secure service for people who want to send money abroad.
Transfers can be made in local currency or US dollars, although some banks may have restrictions on how much you can send. You should also check with your bank that they accept international transfers from your account before proceeding.
Use your bank or other financial institution
If you're sending money from the UK to the USA, then it's best to use a well-known bank or financial institution. These are more likely to have experience with international transfers, so they'll be able to offer you better rates and keep your money safe.
Use a reputable online service
Online services like Paypal or WorldRemit make it easy to send money from one country to another. They offer low fees, too! Paypal also has an app for iOS devices, so it's easy for friends and family in different countries to transfer funds back and forth quickly.
Send money only to people who you know personally
If you want to send cash abroad, make sure that the person who will receive it knows how to handle the money in case something goes wrong. This is especially important if the person needs help with the paperwork or if they do not know how much they should have received at this point in time.
Always check your balance before sending money
The last thing you want is for someone to steal your identity and use your credit card/bank account without your knowledge. If this happens, it could take months before anyone notices and by then, it might be too late for both of you!
Never send money for someone else.
It may seem like a good idea at the time, but it’s not worth putting yourself at risk for something that isn’t yours.
If you're asked for help with a bank transfer, don't do it! International transfer services are very popular among scams because they are very simple and fast but they don't offer any protection against fraud. In fact, they charge higher fees than other methods but provide less security in return.
Use a Strong Password and two factor authentication with any service
Having a strong password is a must. The best way to create a strong password is to use a phrase that you can easily remember and one that can't be easily guessed by others.
Here are some tips to help you create a strong password:
Use a combination of letters, numbers and symbols
Avoid using personal information such as your name, birthday or address
Avoid using obvious words or phrases that are in the dictionary
Make sure the length of your password is at least 8 characters long
Don't use the same password for multiple accounts
Never carry large amounts of money in public
It's not a good idea to carry large amounts of cash on you. Avoid doing large cash transactions, and instead use a digital money app.
Never carry large amounts of money in public places like buses, trains or airports where it could get stolen easily if someone grabs your bag or purse. If possible, leave your bag behind and carry only the amount of cash you intend to spend on that day or week.
Disclaimer
This article does not constitute financial advice. Please check with your financial planner or advisor for professional guidance when selecting financial institutions for sending money from the UK, for the optimal way to send money given your personal circumstance. Always compare currency exchange rates before making a transfer.
