How to Transfer Money: Complete Guide
Transferring money sounds straightforward until you see how many options exist and how widely the costs vary. Whether you are sending funds to a family member in another country, paying a supplier overseas, or moving savings between accounts, how you choose to transfer money can mean the difference between keeping nearly everything and losing a significant share to fees and exchange rate markups. This guide explains how to transfer money using every major method, with real costs, typical speeds, and step-by-step instructions for each one.
The biggest hidden cost that most people miss is the exchange rate margin. Banks routinely add 2 to 4 percent above the mid-market rate when converting currencies, and this charge rarely appears as a separate line on your statement. On a GBP 1,000 transfer to Europe, a major UK bank such as HSBC or Barclays can absorb roughly GBP 30 to GBP 40 in FX markup alone, before any transaction fees are added. When the bank also charges a GBP 15 to GBP 25 SWIFT or international payment fee on top, the real cost of a GBP 1,000 transfer often lands between GBP 50 and GBP 65. Most people assume 'no fee' means free. It does not.
Specialist money transfer services have changed this calculation significantly. Providers like Wise, Remitly, and Xe compete on transparency and rate, using the mid-market exchange rate or very close to it, and showing all costs upfront before you confirm. The same GBP 1,000 transfer to Europe that costs a bank customer GBP 60 in combined fees and markup can often be completed via Wise for under GBP 8. That difference compounds quickly for anyone sending money regularly.
This guide covers every method for how to transfer money: domestic bank transfers, international wire transfers via SWIFT, specialist online money transfer services, mobile app transfers, and cash pickup options. Each section includes the steps involved, actual fees, and delivery times so you can choose the right method for your situation.
Find the Cheapest Way to Transfer Money Right Now
Before reading the full comparison below, use this tool to see live rates and fees for your specific transfer. Enter the amount you want to send and the destination country to see what each provider actually charges.
Methods for Transferring Money
There are five main ways to transfer money in 2026. Which one is right for you depends on whether your transfer is domestic or international, how quickly you need the funds to arrive, and how much the fees and exchange rate will cost you. Each method has a different cost structure, a different speed profile, and different recipient requirements.
- Bank transfer (domestic ACH or Faster Payments) for same-currency transfers within the same country
- International bank wire via SWIFT for sending money abroad through your bank, usually the most expensive option
- Specialist money transfer service such as Wise, Remitly, or Xe for low-cost international transfers at or near the mid-market rate
- Digital wallet such as PayPal for smaller payments, though fees and exchange rate markups apply on cross-border sends
- Cash pickup via Western Union or MoneyGram when the recipient has no bank account and needs physical cash
For most people sending money internationally, specialist transfer services are the best default option. They are faster, cheaper, and more transparent than bank wire transfers on almost every corridor. For purely domestic transfers within the same currency, your bank's own transfer system is usually the simplest and cheapest route.
How to Transfer Money Between Banks
A bank-to-bank transfer, sometimes called a bank credit or ACH transfer in the US and a Faster Payments or BACS transfer in the UK, moves money from your account to someone else's account at the same or a different bank. This method works well for domestic transfers in the same currency. The cost is typically low or zero for personal accounts, and the process is familiar to most account holders.
To transfer money between banks domestically, follow these steps:
- Log in to your bank's app or online banking portal.
- Navigate to the payments or transfers section and select 'New payment' or 'Send money'.
- Enter the recipient's name, sort code and account number (UK) or routing number and account number (US).
- Enter the amount you want to send and the payment reference.
- Review the details carefully, then confirm the transfer.
- Save or screenshot the payment reference number for your records.
In the UK, Faster Payments transfers typically arrive within a few seconds and are free for personal accounts. BACS transfers take three working days but are also free. In the US, ACH transfers are free or very low cost (under USD 1.50 on most platforms) and take one to three business days. Domestic wire transfers in the US are faster (same day) but cost USD 25 to USD 40 per transaction at most banks.
Domestic bank transfers are reliable and easy to use for same-currency transfers. The limitation is that they become significantly more expensive when you need to cross a currency border, which is where specialist money transfer services take over.
How to Transfer Money Internationally
International money transfers work differently from domestic ones. When you send money across a currency border, your bank uses the SWIFT network, a global messaging system that routes payments through one or more intermediary banks before reaching the destination. Each intermediary bank can deduct its own fee, so SWIFT charges are often unpredictable and difficult to calculate in advance.
More importantly, when your bank converts the currency, it applies its own exchange rate rather than the mid-market rate. The gap between the mid-market rate (the one you see on Google or XE.com) and the rate your bank gives you is where most of the cost is hidden. On a GBP 1,000 transfer to India, for example, HSBC's standard exchange rate adds roughly 3 to 4 percent above mid-market. Combined with a GBP 15 to GBP 25 SWIFT fee, that GBP 1,000 transfer costs between GBP 45 and GBP 65 before the recipient sees a penny. Specialist services like Wise charge under GBP 10 for the same amount on the same corridor.
When a bank advertises 'no fee' on international transfers, what it really means is no flat transaction fee. The cost is baked into the exchange rate. A typical UK high street bank applies a 2 to 4 percent margin above the mid-market rate, which on a GBP 2,000 transfer amounts to GBP 40 to GBP 80 of invisible cost. Always calculate the total cost including the exchange rate, not just the stated fee.
For most international money transfers, you will get better rates and faster delivery by using a specialist service rather than your bank. The three most widely used services are Wise, Remitly, and Xe. Each one shows you the full cost before you confirm, uses a competitive exchange rate, and delivers funds faster than a typical SWIFT transfer.
How to Transfer Money with Wise
Wise (formerly TransferWise) is one of the most cost-effective ways to transfer money internationally, rated 9.5 out of 10 overall on this site. It uses the mid-market exchange rate with no hidden markup, charging a small transparent fee that typically ranges from 0.4 to 1.5 percent depending on the currency pair and payment method. On a GBP 1,000 transfer to India, Wise's total cost is typically around GBP 5 to GBP 8, compared to GBP 45 to GBP 65 with a major UK bank.
Wise supports over 40 currencies and is regulated by the FCA in the UK and equivalent bodies in every market it operates in. Customer funds are safeguarded separately from the company's own operating capital. Most transfers arrive within 24 hours, and many are delivered within minutes when sending between major currencies.
To transfer money with Wise:
- Go to wise.com or open the Wise app and create an account.
- Complete identity verification by uploading a photo ID (passport or driving licence).
- Enter the amount you want to send and the destination currency to see the exact fee and exchange rate upfront.
- Add the recipient's bank account details (name, IBAN or account number, SWIFT/BIC code).
- Choose how you want to pay (bank transfer, debit card, or credit card).
- Review the breakdown and confirm. A reference number is issued immediately.
Wise is the go-to option for how to transfer money internationally for good reason. Here is what makes it stand out:
- Mid-market exchange rate on every transfer, with no hidden markup on the rate
- Fees shown upfront before you confirm, so you always know the total cost
- 40+ currencies supported including GBP, EUR, USD, INR, AUD, and most major corridors
- FCA regulated with customer funds safeguarded under UK regulatory rules
- Fast delivery most transfers arrive in under 24 hours, many within minutes
How to Transfer Money with Remitly
Remitly is rated 8.5 out of 10 and is particularly strong for sending money to South Asia, Southeast Asia, Africa, and Latin America. It offers two transfer options on most corridors: Economy (slower delivery, lower fees) and Express (faster delivery, slightly higher fees). Fees are corridor-specific and typically range from USD 0 to USD 3.99 per transfer, though the exchange rate includes a small margin above mid-market that varies by destination.
New customers receive a promotional rate that matches or beats the mid-market rate on their first transfer, which makes it particularly good value when you are sending money for the first time. Remitly also offers cash pickup at partner locations in many countries, making it a solid choice when the recipient cannot receive a bank transfer.
To transfer money with Remitly:
- Sign up at remitly.com or download the Remitly app.
- Select the country you are sending to and the amount.
- Choose the delivery method: bank deposit, mobile wallet, or cash pickup.
- Enter the recipient's details and bank account information.
- Select Economy or Express delivery depending on your urgency.
- Review the fee and rate, then confirm the payment.
Remitly's Express service delivers money in minutes on many corridors, making it ideal when speed matters. Key highlights:
- Express delivery to many countries in under an hour via debit or credit card
- Cash pickup available at thousands of locations when recipients have no bank account
- Promotional first-transfer rate for new customers that beats most banks' standard rates
- Wide coverage with support for over 170 countries and multiple delivery methods
How to Transfer Money with Xe
Xe is rated 9.0 out of 10 and has a particular strength in exotic currencies and large-volume transfers. Unlike Wise, Xe does not charge a flat service fee on personal transfers. Instead, it makes its money through a small exchange rate margin, typically 0.5 to 1.5 percent above mid-market, which on smaller amounts can work out to be more cost-effective than a fee-based structure. For larger transfers above USD 5,000 or GBP 5,000, Xe is often the most competitive option on the market.
Xe supports over 130 currencies, more than most specialist services, which makes it the right tool for sending money to less common destinations. It is regulated by FinCEN in the US, the FCA in the UK, and equivalent bodies in other markets, and it has processed over USD 115 billion in transfers annually, making it one of the most established international money transfer platforms in operation.
To transfer money with Xe:
- Register at xe.com and complete identity verification.
- Enter the amount and destination currency to see the rate and any fees.
- Add the recipient's bank account details.
- Fund the transfer via bank transfer or debit card.
- Confirm and track the transfer via email and the Xe app.
Xe is worth considering when transferring larger amounts or sending to currencies that other services do not support well. Key features:
- 130+ currencies supported including many exotic and emerging market currencies
- No flat fee on personal transfers, with transparent rate margin shown before you confirm
- Rate alerts let you wait for the optimal exchange rate before committing
- FCA regulated with a 25+ year track record in currency conversion
How to Transfer Money Online: Step by Step
Whatever platform you use, the process of how to transfer money online follows the same basic sequence. Understanding each step before you start helps you avoid mistakes and ensures the money reaches the right person quickly.
- Choose a transfer service. Compare fees and exchange rates using this page's comparison tool before you commit. The difference between the best and worst rate for a GBP 1,000 transfer can easily be GBP 50.
- Create or log in to your account. New accounts require identity verification: a photo ID and sometimes proof of address. This is a regulatory requirement under anti-money laundering rules and takes five to ten minutes.
- Enter the transfer details. Specify the amount, the currency, and the country you are sending to. The platform will show you the exchange rate, the fee, and the amount the recipient will receive before you proceed.
- Add or confirm recipient details. For bank transfers, you need the recipient's full name, bank account number, sort code or IBAN, and sometimes the bank's SWIFT/BIC code. Entering incorrect details is the most common cause of delays.
- Choose how to pay. Paying from your bank account (bank transfer or ACH/Faster Payments) is usually the cheapest. Card payments are faster to initiate but typically cost more in fees.
- Review and confirm. Check every detail before confirming. Once submitted, most transfers cannot be cancelled.
- Track the transfer. Every platform provides a reference number and a tracking link. Email updates are sent at each stage of the transfer.
The whole process typically takes five to fifteen minutes from start to confirmation. Account verification for first-time users may add another day if the platform needs to manually review documents.
How to Transfer Money from Your Phone
Mobile apps have made it easier than ever to transfer money from your phone in under five minutes. Wise, Remitly, and Xe all have fully featured iOS and Android apps that handle the complete transfer process, from account creation and identity verification through to payment confirmation and tracking. You do not need to use a desktop browser at any point.
When transferring money from your phone, a few additional steps matter:
- Use a secure connection. Avoid initiating transfers over public Wi-Fi. Use mobile data or a trusted home network.
- Enable biometric authentication. Face ID or fingerprint login on your device adds a layer of protection against unauthorised access.
- Double-check recipient details. Typing errors on a small screen are easy to make. Copy and paste account numbers rather than typing them manually.
- Keep the app updated. Transfer apps release regular security updates. An outdated app may have known vulnerabilities.
- Save the confirmation. Screenshot or save the payment confirmation reference in case you need to follow up with support.
Most platforms also support Face ID or biometric authentication to approve transfers, which adds a practical layer of security when sending from a mobile device.
How Long Does a Money Transfer Take?
Transfer speed varies significantly depending on the method and destination. Domestic transfers within the same currency are almost always faster than cross-border ones, and specialist services are generally faster than traditional bank wire transfers for international payments.
Transfer method | Typical speed | Notes |
|---|---|---|
UK Faster Payments (domestic) | Seconds to 2 hours | Available 24/7, free on most accounts |
US ACH transfer | 1 to 3 business days | Free or very low cost, not available weekends |
US domestic wire transfer | Same day or next day | USD 25 to USD 40 fee per transfer |
Bank international SWIFT | 2 to 5 business days | Intermediary bank fees may apply |
Wise | Under 24 hours (often minutes) | Depends on currency pair and payment method |
Remitly Express | Minutes to a few hours | Debit or credit card funding |
Remitly Economy | 1 to 5 business days | Bank transfer funding, lower fee |
Xe | 1 to 2 business days | Faster on major currency pairs |
If your transfer is taking longer than expected, the most common causes are: identity verification pending on your account, the recipient's bank applying its own processing delay, a bank holiday in the destination country, or a compliance review on a larger or unusual transfer. All major platforms provide tracking links that show exactly where your transfer is in the process.
How Much Does It Cost to Transfer Money?
Money transfer costs come from two sources: the flat fee charged by the platform or bank, and the exchange rate margin applied when converting currencies. Many people focus only on the fee and overlook the exchange rate, which is often where the largest share of the total cost is hidden.
Here is a worked example for transferring GBP 1,000 to India using different methods:
Method | Fee | FX margin (approx.) | Total cost on GBP 1,000 |
|---|---|---|---|
High street bank (HSBC, Barclays) | GBP 15 to GBP 25 | 3 to 4% | GBP 45 to GBP 65 |
Wise | GBP 5 to GBP 8 | 0% (mid-market rate) | GBP 5 to GBP 8 |
Remitly | GBP 0 to GBP 4 | 0.5 to 1.5% | GBP 5 to GBP 19 |
Xe | GBP 0 | 0.5 to 1.5% | GBP 5 to GBP 15 |
PayPal (international) | GBP 0 to GBP 5 | 3 to 4% | GBP 30 to GBP 45 |
The table shows why using a high street bank to transfer money internationally is rarely the right choice. For a GBP 1,000 transfer, the difference between the cheapest specialist option and a standard bank wire is GBP 40 to GBP 60. Over the course of a year, someone sending GBP 1,000 monthly would save GBP 480 to GBP 720 simply by switching to a specialist service.
PayPal also deserves attention here. While PayPal is convenient for small domestic payments, its international transfers apply a 3 to 4 percent currency conversion fee above mid-market, making it one of the more expensive options for cross-border money transfers. On a GBP 1,000 transfer to India, PayPal's FX margin alone adds roughly GBP 30 to GBP 40 before any fees. Compare that to Wise's GBP 5 to GBP 8 all-in and the saving is significant.
Compare Rates for Your Transfer Now
Now that you know how to transfer money and what it should cost, use this tool to get exact fees and exchange rates for your specific amount and corridor.
How to Transfer Money Safely
Online money transfers using regulated platforms are safe in the same way that online banking is safe. Wise, Remitly, and Xe are all regulated by financial authorities in the UK, US, and EU, and they hold customer funds under strict safeguarding rules. The main risks in money transfer are human error and social engineering fraud, not platform security.
- Only send money to people you know and trust. Fraudsters impersonate banks, HMRC, employers, and landlords. Never transfer money based on an unexpected call or message.
- Verify account details independently. If you receive updated bank details from a supplier or individual, call them directly to confirm before updating your records. Account takeover fraud often works by redirecting payments to fraudulent accounts.
- Check the URL before logging in. Only use the official website or app from the provider. Phishing sites mimic legitimate platforms.
- Use platforms regulated in your country. In the UK, check the FCA register. In the US, check the FinCEN MSB list. Regulated platforms have capital requirements and client fund protections that unregulated ones do not.
- Keep your account credentials private. No legitimate money transfer company will ask for your password. Use a unique strong password and enable two-factor authentication on your account.
Authorised push payment fraud is the leading type of money transfer fraud in the UK and US. It works by convincing you to voluntarily send money to an account controlled by a fraudster, often posing as your bank, a government agency, or a person you trust. Because you authorised the payment, recovery is more difficult than with unauthorised card fraud. If you are ever asked to transfer money urgently because an account has been 'compromised' or because of an unexpected fine or refund, stop and verify the request through a separate, known contact channel before transferring anything.
Frequently Asked Questions About How to Transfer Money
How do I transfer money to someone's bank account?
Log in to your bank app or a specialist transfer service, enter the recipient's name and bank account details (sort code and account number in the UK, or routing and account number in the US), enter the amount, and confirm. For international transfers, you will also need the recipient's IBAN and SWIFT/BIC code. Specialist services like Wise and Remitly make this process straightforward and typically cheaper than a direct bank transfer abroad.
How long does a money transfer take?
Domestic transfers within the same currency (such as UK Faster Payments or US ACH) usually arrive within seconds to a few hours. International transfers via your bank's SWIFT network take 2 to 5 business days. Specialist services are considerably faster: Wise delivers most transfers in under 24 hours, and Remitly's Express service can deliver in minutes when funded by card.
What is the cheapest way to transfer money internationally?
Specialist money transfer services are almost always cheaper than sending money internationally through a bank. Wise uses the mid-market exchange rate with a fee typically between 0.4 and 1.5 percent. Xe charges no flat fee and applies a small exchange rate margin. Both are significantly cheaper than high street banks, which typically add 2 to 4 percent above the mid-market rate on top of a flat SWIFT fee.
Is it safe to transfer money online?
Yes, transferring money online via regulated platforms is safe. Wise, Remitly, and Xe are all regulated by financial authorities including the FCA in the UK and FinCEN in the US, and they safeguard customer funds separately from their own operational accounts. The main risks are fraud and human error, not platform security. Always verify recipient details and use official apps or websites.
What information do I need to transfer money internationally?
You need the recipient's full name as it appears on their bank account, their bank account number or IBAN (International Bank Account Number), the bank's SWIFT or BIC code, and in some cases the recipient's address and the bank's address. The sending platform will prompt you for everything it needs before you confirm.
How do I transfer money from my phone?
Download the app for your chosen transfer service (Wise, Remitly, or Xe are all available on iOS and Android), create and verify your account, and follow the same steps as the web version. The mobile apps are fully featured and support the complete transfer process including identity verification. Use a secure connection and enable biometric authentication for added security.
Can I transfer money without a bank account?
The sender needs a way to fund the transfer, which is usually a bank account or a debit or credit card. The recipient, however, does not necessarily need a bank account. Services like Remitly and Western Union offer cash pickup options where the recipient collects the funds in person at a partner location. Mobile wallet delivery is also available to many countries.
How do I track a money transfer?
Every reputable transfer platform provides a reference number and a tracking link at the point of confirmation. You can use this link to check the status of your transfer at any time. Most platforms also send email or push notification updates when the transfer progresses from 'sent' to 'in transit' to 'delivered'.
What is a SWIFT transfer?
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a global messaging network used by banks to instruct each other to move money across borders. A SWIFT transfer routes your payment through one or more intermediary banks, each of which may charge its own fee and apply its own processing time. SWIFT transfers typically take 2 to 5 business days and cost more than using a specialist money transfer service.
Why is my money transfer taking so long?
The most common causes of a delayed money transfer are: your identity verification is still pending on the platform, the recipient's bank is applying its own processing hold, there is a bank or public holiday in the destination country, or the transfer has been flagged for a routine compliance review. Log in to the platform and check the tracking status. If no update is available after the stated delivery window, contact the platform's support team with your reference number.
What is the difference between a bank transfer and a wire transfer?
In common usage, 'bank transfer' usually refers to a domestic account-to-account payment within the same currency, such as a Faster Payment or ACH transfer. 'Wire transfer' typically refers to a more formal, often international transfer that uses the SWIFT network or a domestic wire network such as CHAPS in the UK or Fedwire in the US. Wire transfers are generally faster than standard bank transfers but also more expensive.
How do I transfer a large amount of money internationally?
For large international transfers (above USD 10,000 or GBP 10,000), Xe is often the most competitive option because it applies a rate margin rather than a flat fee, meaning the percentage cost stays low even on large amounts. Specialist currency brokers may also be worth considering for very large transfers. Note that transfers above certain thresholds trigger identity verification and source-of-funds checks as part of standard anti-money laundering regulation.
Knowing how to transfer money is one of the most practical financial skills you can have. The difference between using a bank wire and using a specialist service like Wise, Remitly, or Xe for international transfers can amount to hundreds of pounds or dollars saved each year. For domestic transfers, your bank's own system is usually the simplest and cheapest option. For anything crossing a currency border, always compare rates before you send, and use a regulated specialist service to keep costs low and delivery fast.
Mohammad Humaid
Verified AuthorMo is the founder of MoneyTransferStore. As an expat who has experienced the challenges of sending money across borders himself, he set out to help others like him avoid hidden fees and unfair exchange rates on international transfers. With a background spanning fintech, payments, and Web3, Mo brings years of practical experience to building a platform focused on transparency and trust.
