How to Transfer Money to an Indian Bank Account From the UK

Transferring money from the UK to an Indian bank account can be crucial for various purposes, such as supporting family, investing, or conducting business. With multiple options available, finding the most efficient and cost-effective method for your needs is essential. This guide will explore different options, including banks, transfer companies, and more.

Sending money to India from the UK involves several options to ensure a smooth and secure transaction. Firstly, you can opt for traditional banks that offer Telegraphic Transfer (TT) or online banking services. While convenient, banks may charge higher fees and less favourable exchange rates. Alternatively, using specialized transfer companies like Wise, Remitly, or Panda Remit can offer better rates and lower costs. Additionally, online payment platforms like PayPal and Payoneer also facilitate international money transfers to Indian bank accounts. To find the most cost-effective option, consider using the Monito comparison engine, which allows you to compare various providers based on fees, exchange rates, and transfer times.

By exploring these options and being aware of potential costs, you can successfully transfer money to an Indian bank account from the UK with ease. Monito’s comparison tool comes into play right here to help you choose the best option.

When transferring money to a foreign bank account from India, it is crucial to choose a reliable and cost-effective service. Fortunately, there are several top specialist money transfer services that cater to this need. Among the leading platforms is Wise (formerly TransferWise), Remitly, Panda Remit, and XE Money, which stand out for their simplicity, accessibility, better rates than many, and efficiency.

Costs of Transferring Money From the UK to India

When transferring money from the UK to India, there are several costs to consider, which can vary depending on the method you choose. Here are the main costs associated with international money transfers:

• Transfer Fees: Most banks and transfer companies charge a fee for processing the transfer. Banks typically have higher fees, while specialized transfer companies and online payment platforms may offer more competitive rates. On average, traditional banks may charge a fixed fee of around £20 to £40 per transaction, with additional foreign exchange fees ranging from 3% to 5% of the transfer amount. This means sending £1000 could result in up to £50 charges.
• Exchange Rates: When sending money from the UK to India, exchange rates play a crucial role in determining the final amount received by the recipient. Traditional banks often offer less favourable exchange rates, adding a significant markup to the mid-market rate. This can result in the recipient receiving fewer Indian Rupees for every Pound Sterling sent. For instance, if the mid-market exchange rate for GBP to INR is £1 = Rs. 100, traditional banks might offer something like £1 = Rs. 95, effectively taking a 5% cut on the exchange.
• Hidden Charges: Some banks and transfer services may have hidden charges, including intermediary or correspondent bank fees. These additional costs can impact the overall amount received by the recipient. Apart from the markup, some traditional banks may levy extra fees for specific payment methods, such as credit card payments.
• Transfer Time: The speed of the transfer can affect the cost. Expedited or instant transfers may incur higher fees compared to standard delivery times. Thanks to modern tech and money transfer providers, you can send money from the UK to India relatively quickly - many providers offer same-day transfers. However, the actual time it takes will depend on factors like which platform you are using, the deposit method you are choosing, the delivery option (cash pickups, account transfers) you are going for, or the fees of the recipient bank in India.

Best Ways to Transfer Money From the UK to India

Monito's comparison services can be invaluable in helping users choose the right money transfer service for their needs. Monito is an independent platform aggregating information on various money transfer providers, including fees, exchange rates, and delivery options. Monito's comparison engine helped us narrow down the top specialist money transfer services -- Wise, Remitly, Panda Remit and Atlantic Money. Let us delve a little deeper into each of these services.

Wise

Wise emerges as one of the best and most cost-effective options when transferring money from the UK to India. Wise utilizes a unique peer-to-peer system that allows direct currency exchange, eliminating the need for traditional bank intermediaries and reducing associated fees. As a result, users can benefit from actual mid-market exchange rates with only a small and transparent fee. For instance, while traditional banks may impose exchange rates with a 5% markup or more, Wise typically charges a fee of around 0.35% to 1.5% for currency conversion. Individuals transferring money from the UK to India through Wise can save significantly on conversion costs and ensure that more funds reach the intended recipient.

In addition to its favourable exchange rates and low fees, Wise also offers fast and efficient transfers. With its extensive network and local banking connections, Wise can process transactions swiftly, enabling users to send money to India in hours or a few business days, depending on the payment method. The platform's transparent fee structure, reliable service, and ability to handle large transfers make Wise a popular choice for individuals and businesses when transferring money from the UK to India.

Remitly

Remitly is one of the best ways to transfer money from the UK to India, offering a reliable and cost-effective service. With its competitive exchange rates and various delivery options, Remitly has gained popularity among users looking to send money to India. According to user reviews, Remitly provides quick and secure transfers, making it a preferred choice for individuals and businesses. Additionally, the platform offers a user-friendly interface, making sending money straightforward and hassle-free.

Data shows that Remitly's fees are often lower than traditional banks, resulting in significant cost savings for users. For example, while banks may charge around £20 to £40 in fixed fees per transaction, Remitly typically offers more competitive rates, often with a fee as low as £2.99 for express transfers to India. Furthermore, Remitly's exchange rates are usually closer to the mid-market rate, which means the recipient in India receives a more favourable amount in INR. Users appreciate this transparency and value for money when using Remitly to transfer funds from the UK to India, making it a top choice for international money transfers.

Panda Remit

Panda Remit has emerged as a standout choice for transferring money from the UK to India, offering a seamless and cost-effective solution. With a commitment to transparency and competitive rates, Panda Remit has gained popularity among individuals and businesses alike. According to recent data, Panda Remit boasts an average cost savings of up to 75% compared to traditional banks when sending money to India. This substantial reduction in fees can significantly impact the overall amount received by the recipient.

One of the key features that set Panda Remit apart is that it offers a variety of payment methods, including bank transfers and credit card payments, providing flexibility and convenience to its users. Panda Remit assures transfer within minutes at a better-than-mid-market rate, ensuring affordability, reliability, and efficiency in facilitating seamless transfers from the UK to India.

Atlantic Money

When transferring money from the UK to India, Atlantic Money emerges as a highly competitive and efficient option. With a track record of providing excellent service and favourable rates, Atlantic Money has gained recognition as a top choice for international money transfers. Data reveals that Atlantic Money consistently offers exchange rates that closely mirror the mid-market rate, minimizing the impact of unfavourable fluctuations and ensuring that recipients in India receive more value for their money.

Furthermore, Atlantic Money distinguishes itself with its transparent fee structure. For instance, it has a free service and a paid one. The person receiving the amount will receive 0.13% lesser than the mid-market rate in both cases. However, the difference lies in the time taken for the transfer to complete. The free service remits the money from the UK to India between 1 and 2 days, whereas the paid service will ensure a 1-day transfer for a fee of £1. This combination of competitive exchange rates and transparent fees positions Atlantic Money as an appealing option for individuals and businesses seeking a reliable and cost-effective way to transfer money from the UK to India.