From bank transfers to money providers to digital apps, there have never been more ways to send money to India from the UK.
The UK is home to a high Indian population, with 1.8 million people in England and Wales identifying themselves as Indian ethnicity in 2021, according to Non Resident Indians Online. As many of them need to send money abroad, money transfer operators are well equipped to cater to this corridor.
Not only this, but now is the time to transfer; India’s rupee has declined in value by around 10-11% against the pound since the start of the year, with some analysis pointing to tariffs as a key factor in the rupee’s decline. The falling value of INR versus GBP makes it cheaper and more favourable for someone in the UK to send money to India, as each pound converts to more rupees.
If you’re looking to send money to India from the UK, this guide contains some key things to consider before making a transfer, including how you can compare money transfer providers to get the most for your money.
Key things to consider when comparing money transfer providers to India
Before considering options for transfers, it’s important to know what you actually need to be paying attention to when making transfers.
Exchange rate
Remember that changes in the exchange rate for GBP and INR can make a real impact on your transfer. Bear in mind, also, that banks and money transfer operators also add their own rates to transfers, which can go up and down depending on how volatile a currency is. That’s why it’s always important to assess the rate you are getting versus other providers.
Fees
Aside from an FX margin, banks or money transfer companies can charge a flat fee for transfers. Depending on the amount you are sending, it may be cheaper to go with a provider charging a flat fee – for example, if you are sending a larger amount of money and the provider charges a percentage-based FX margin that grows as the amount increases.
Transfer speed
Does your recipient in India need the money today? Chances are, you’ll want it to arrive with them as quickly as possible. However, some banks may take as much as a few days to send money abroad, as it needs to pass through a network of intermediaries (i.e. correspondent banks) to get to the final destination. Some may even charge you a fee if you want the money to arrive faster.
Payment method
Think about how you will fund your transfer, which could be via a bank transfer, debit or credit card or through a mobile wallet. Similar to opting for different transfer speeds, money travel providers may charge different fees for different payment methods. For example, credit cards may be a more expensive way to fund a transfer as they take longer to process.
Delivery method
This depends on how your recipient collects the money, whether this is by bank deposit, cash pickup or through a mobile wallet. This is key to consider, because it may affect the speed, convenience or cost of your transfer.
Money transfer providers today cater to a number of payout options, discussed more below.
Direct to bank transfers
Directly transferring to bank accounts can be the most secure and straightforward option, particularly if you are sending a large amount of money or regular support payments. However, remember to query the cost and the amount of time it will take to make a transfer. This is not always immediately transparent, which is why it is a good idea to compare first using our free comparison tool.
Cash pickup
Many transfer to India using cash – particularly if they are transferring to rural regions. However, bear in mind that sending transfers to cash may lead to additional handling costs that can ramp up fees for your transfer
Mobile wallet
With India’s rapidly growing digital payments space, mobile wallets are seeing growing adoption. In particular, many wallets are now running on India’s Unified Payments Interface (UPI) framework, which enables instant P2P payments across the country. Some money transfer providers may therefore allow you to transfer to key wallets such as Google Pay, PhonePe or Pay.
Step-by-step guide to sending money to India
If you’re thinking about transferring money to India, here is a step-by-step guide to how the process tends to work below.
- Compare providers based on exchange rate, fees and speed (remember to consider the overall cost of your transfers)
- Create an account and verify your identity
- Enter recipient details (i.e. their name, bank account, Indian Financial System Code (IFSC) code or UPI ID if applicable)
- Choose payment method (bank transfer, debit card, etc.)
- Confirm rate and fees before sending
- Track your transfer via the app (if you are using this) or email updates
You should also remember to do the following when comparing providers to send money abroad.
- Compare rates at the time you send
- Look for promotions or free-transfer offers
- Send larger but less frequent amounts if flat fees apply
- Check bank cut-off times to avoid delays
Compare providers to send money to India now
It takes time to compare different providers. However, with FXcompared’s money transfer comparison tool, you can do it in just a few seconds.
We’ve done the hard work to compare trustworthy, established companies in the industry so that you can send money abroad safely. Click the link to compare the cost and speed of money transfers from the UK to India today.
