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There are a few options for sending money to the United States, and your own bank is unlikely to be the cheapest.
If you need to send money to family or a business in America, for example, we’ve rounded up the range of options available – from app-based currency brokers to high street money transfer branches, such as Western Union.
For larger money transfers, such as for an overseas property purchase, specialist providers usually offer more competitive exchange rates as well as forward contracts which allow you to fix in your exchange rate up to 12 months in advance
What factors should you consider?
When it comes to sending money to America, the bottom-line objective is to get as many US dollars to arrive there for the pound sterling you are parting with. And this will hinge on a number of factors:
The value of the pound
How much the pound is worth against the dollar depends on a range of economic and political factors. However, at the time of writing in January 2025, £1 buys $1.24. Currency exchange rates fluctuate all the time though, so our currency converter will give you the latest.
Money transfer providers employ their own currency exchange rates but these are often wrapped up with other fees and charges.
Equally, while some money transfer services claim not to charge fees or even take a commission, the exchange rate is unlikely to be competitive – to compensate for the loss. In other words, these services may not present as good a deal as it might appear.
Before the financial crash of 2008, £1 could buy $2. Now (January 2025) the same £1 would buy you just $1.24
Minimum transfers
Some money transfer services set a minimum transfer amount. Often this is around £100 for a one-off transfer – as is the case with John Lewis Money and TorFX for example – but minimums can be much higher for regular transfers, and may be higher than you need.
What’s a forward contract?
Currency forward contracts, available at currency exchange brokers, allow you to lock in an agreed exchange rate between 24 hours and up to a year in advance of making your transfer. It’s particularly useful when transferring larger sums – such as to buy a property in the US – as it enables you to budget. The downside is that the pound could strengthen against the dollar, leaving you shortchanged on the exchange rate.
Protection
The protection available for your transfer depends on how you send your money.
If you are using a specialist currency broker, choose one that is authorised by the Financial Conduct Authority (FCA). This means it will be obliged to safeguard your money, keeping it separate from its own funds and protecting it if the company goes bust. Some brokers may just be on the FCA register, which is different to being FCA-authorised so check for this.
If you are using a UK bank or building society for the transfer, your money will be protected under the Financial Services Compensation Scheme up to £85,000.
Speed
As with many services, if you want quicker delivery it will cost more. Money transfer companies tend to charge a premium for same-day or next-day transfers. You may be able to get a better rate if you can wait a few days for the transfer to take place.
Current exchange rates
The strength of sterling against the US dollar will dictate how many dollars you get for your pounds. At the time of writing (January 2025), £1 buys $1.24, but you can use our currency converter to get the current exchange rate.
This is a far cry from the $2 it was possible to buy with £1 before the financial crash of 2008, from which Sterling never fully recovered.
While the value of the pound increased to $1.70 in subsequent years, the aftermath of Brexit then weakened it significantly.
Ultimately, when the pound is weak, you’ll have to spend more of it to get a given amount of dollars.
6 options for sending money to the US
1. Paypal
This one is a simple and convenient option if you and the payee both use Paypal, but it’s also one of the most expensive. Not only are the rates unlikely to be competitive, there’s no protection for your money if you use its Friends & Family option.
2. High street brands
Western Union and Moneygram are familiar brands in the money transfer space, with more than 60,000 branches in the US alone, but they’re unlikely to offer the most competitive rates of exchange.
Under these options the payee doesn’t necessarily need a bank account, as transfers can be collected directly from the corresponding branch in the US, some of which are found at Walmart supermarkets.
3. Your own bank
Your bank is a convenient and secure way to send money to America, but there will be fees to pay, and the exchange rate is unlikely to be the best on the market. The only exception is if you and the payee use the same bank, such as HSBC or Citibank, for example, in which case the fees may be lower, or may not be imposed at all.
Starling, a challenger bank, charges a low transfer fee of 0.4% and, at the time of writing, had a competitive exchange rate of $1.2322 to the pound. Read our Starling review to learn more.
There is, however, a Delivery Fee of £5.50 if you use its SWIFT payment option, with proof of payment and payment references. Otherwise you’ll pay £0.30 for its low-cost option, which has no proof of postage or payment references.
4. Multi-currency accounts
These current accounts allow you to hold money in different currencies simultaneously. They’re offered by major banks like Lloyds and HSBC.
Some wealth management platforms such as Lightyear also offer multicurrency accounts that do not charge a monthly fee.
Scams are rife in the currency broker sector. Never disclose personal information or details of your transaction if you receive a phone call, text or email
5. Specialist currency brokers
App-based currency or ‘FX’ brokers, such as Moneycorp, TorFX and IG, can offer competitive exchange rates. But they tend to be better suited to large or regular transfers. Transactions can be made online with credit card, debit card or bank transfer.
6. Electronic money (e-money) providers
Electronic money providers refers to companies like Wise and Revolut, which offer fast and cheap transfers but no protection under the Financial Services Compensation Scheme (FSCS), although the latter is expected to join the FSCS this year (it received a banking licence in July 2024).
It’s vital to check what your rights are if a money transfer goes wrong. For example, only payments made by credit or debit card can be recalled if there’s a mistake or a dispute.
E-payment services offer dispute resolution schemes but rules vary among providers. In many instances, when you send money it’s gone forever.
– Martyn James, consumer rights specialist and resident expert on BBC One’s Rip Off Britain
Wise allows customers to hold 49 different currencies and use money in 175 countries, and offers low-cost money transfers using the mid-market rate. This rate is in the middle of the exchange rates at which bankers buy and sell currencies, and is sometimes referred to as the ‘real’ rate of exchange.
There’s a small fee to pay, but the cost of Wise’s transfers depends on how much you’re sending, what currency you’re paying in and what currency you’re converting it into.
Revolut offers instant currency exchanges in more than 70 currencies and 160 countries. Exchange rates and fees are explained in simple terms before you make a transfer, spelling out what the recipient will receive after conversion and fees.
Frequently Asked Questions (FAQs)
How much money can I send to the USA?
Each provider operates its own limits, whether that’s per day, week, month or year. Larger transfers tend to require identity and anti-money-laundering checks.
For example, Western Union allows transfers of up to £800 without ID verification, while larger, ID-verified transfers can be as large as £50,000 if it’s from your bank account to a US-based bank account.
HSBC allows transfers of up to £50,000 online and up to £10,000 by phone. Lloyds Bank, meanwhile, allows you to transfer up to £100,000 online and up to £10,000 over the phone, but places no limits on transfers in-branch.
How long does it take to send money to the USA?
This depends on how you make the transfer and which transfer service you use. Revolut boasts that it can transfer money in 20 seconds, but generally speaking it takes a few hours. Bank transfers will reach the payee’s account on the same day.
How much does it cost to transfer money to the US?
The cost depends on three factors:
- the provider – different companies charge different fees and convert at different rates
- the transfer method – credit card fees may differ from bank transfer fees, for example
- the speed of the transfer – faster transfers generally cost more.
Can I send money to the USA without paying fees?
Yes, but that doesn’t necessarily mean you’re saving money. Specialists with fee-free transfers tend to make their money on the exchange rate, which might not be the most competitive. You may also have to wait longer for the money to be sent.
If you’re making a one-off transfer, you may be able to benefit from promotional discounts on your first transfer.
