Here we compare using a bank versus money transfer companies, because when you move to the UK you will need to transfer money into a UK bank account to avoid unnecessary costs and to have easy access to your funds. The process can be complicated and costly, so its best to shop around and know your options.
Advantages of using your existing bank
- The money goes straight into the UK bank account you have opened
- Money can be transferred quickly if both parties bank with the same institution
- Some banks do not charge a transfer fee
- Good customer service support
- Can make the transfer online or over the telephone
- You don’t have to present paperwork like your passport in order to make the transaction
Disadvantages of using a bank
- Transfer fees are often much higher than using money transfer companies
- Often both the person sending the money and the recipient are charged a fee
- The exchange rate can be much lower (sometimes 10 times lower) than that being offered by money transfer companies
- It can take 5 to 7 days for the transfer to be made
Advantages of using money transfer companies
- Low or no transfer fees
- Better exchange rate than banks by 6 to 10 times
- Faster, with some providers being able to transfer money the same day
- Transfers can be done online, by bank transfer, using an e-wallet, such as Apple Pay, and sometimes in cash via the money transfer companies local branch
- Money can be sent to a UK bank account or collection point
- Recipient does not have to have a UK bank account
- You can hold money in multiple currencies
- Some providers offer a pre-paid card so you can take money abroad safely, such as TransferWise
Disadvantages of using money transfer companies
- Have to register and upload ID, such as passport
- Limits apply on how much money you can send in one transaction
- Might be difficult for less tech savvy people
- Do not cover all countries and currencies
- You need a smartphone and stable internet
- Limited phone support
