When moving overseas, whether you’re a working professional or a businessperson, the first issue that comes to mind is how you’ll be able to pay your family back home. If there is a way to do this without having to wait hours in line at an FX office, then voila!!
This article will look at many methods to send money to India from the UK and offer advice on how to obtain the best exchange rate to reduce the cost of your transfers.
So, let’s head to the journey of how you could pay your money with the best forex rates.
Money transfers from the UK to India are frequently needed by both individuals and commercial enterprises. Finding the best FX rate is essential to ensuring that the recipient obtains the most value, whether it be for remittances, education costs, or buying real estate. Nevertheless, with so many options available, it can be confusing to go through the different costs, conversion rates, and transfer periods to select the most affordable and practical option.
Understanding the exchange rate:
The foreign exchange rate, also known as the forex rate or currency exchange rate, refers to the value of one currency in relation to another currency. Due to a number of variables, such as market dynamics, supply and demand, and economic, political, and social developments, this rate is continually shifting and altering.
Changes in the relative strength of various economies are one of the key factors that influence foreign currency rate fluctuations. For instance, if one nation’s economy expands more quickly than another nation’s, its currency may gain value relative to that nation’s currency. In a similar vein, political occurrences like changes in government leadership, policy choices, or global wars can also influence currency rates.
The COVID-19 pandemic has also had a significant impact on the foreign exchange market. Central banks around the world have lowered interest rates and implemented quantitative easing measures to support their economies during the pandemic, which can impact exchange rates.
As for the exchange rate between the GBP (British Pound) and INR (Indian Rupee), it was around 101.22 INR to 1 GBP as of February 21, 2023. However, the value of GBP against the INR has slightly risen since the start of the financial year, when 1 GBP was equal to about 99.62 INR. The real exchange rate can move significantly throughout the day since it is influenced by a number of factors, including economic data release, political development, and market volatility.
What would you need in order to send money to India online from abroad?
Remittance services (Online money transfers) are becoming a common means to move money across nations. Millions of individuals worldwide have utilized it, particularly those who needed to send money from any location in the world, such as the UK to India. Here are tips for online money transfer to India from the UK.
You can quickly keep track of your transactions and ensure the security of your finances with online money transfers. Comparing online money transfer to more conventional means of transferring money abroad, it is more practical, secure, and affordable. You may send money in real-time using this method without going to any physical locations or having to wait a long time for the transaction to be finished. It also gives you a simple way to keep track of your transactions and progress.
What is the cost of sending money to India?
The cost to send money to India can vary depending on several factors, such as the service provider, the transfer amount, the currency exchange rate, and most importantly by which method you are sending your money.
Some common fees and cost that may associate with sending money to India include:
- Transfer fees: Service providers such as banks, money transfer operators, and online platforms may charge a transfer fee for sending money to India. This fee can vary depending on the provider, the transfer amount, and the method you are transferring in.
- Exchange rate markup: Exchange rate markup is a difference between the exchange rate offered by the service provider and the mid-market rate. This markup can vary depending on the provider, and it can significantly affect the total cost of sending money.
- Receiving fees: The recipient’s bank in India may charge a fee for receiving the money. This charge may vary depending on the bank and receiving method.
- Additional charge: Some providers may charge additional fees such as processing fees, cancellation fees, and account maintenance fees.
What are the best ways to transfer money to India from the UK?
There are a number of methods to send money to India from the UK, and the ideal one for you will depend on your individual requirements and preferences. The following is a list of the most popular options:
BANK-to-BANK TRANSFER: Customers of several banks have the option to send money directly between bank accounts. These transactions can be scheduled in person at the delivery bank, over the phone, or online. The account and routing information from the sending and receiving banks are required, and there can be a fee depending on the institution. Some institutions may have special remittance systems for transmitting much smaller amounts.
Caution: it’s critical to take currency rates into account since, even if no fee is imposed, the institution might still profit from the spread of transaction costs.
PREPAID DEBIT CARD: A prepaid debit card can be used to transmit money to some services. When sending a sizable quantity of money using this technique, the sender can load a prepaid debit card with cash funds, and the recipient can withdraw the funds using the prepaid debit card. The prepaid card may occasionally function as a standard debit card for the purpose of making purchases. However, there is often a one-time or ongoing activation cost.
WIRE TRANSFER: A wire transfer can also be used to move substantial quantities of money from one bank account to another. These transfers are started by a bank official at the receiving bank who completes the relevant paperwork. The majority of wire transfers must be done in person. There is a price associated with this sort of service as well, but wire transfers provide protection from both banks, so the fee is worthwhile.
ONLINE PLATFORMS FOR MONEY TRANSFERS: You may send money to India from the UK with ease and speed using online platforms. These services frequently have fees and may have restrictions on how much money you may send. In spite of that, comparing your money transfer options can give you the best alternatives to choose how you will be transacting your money all the time.
CASH PICK: If your receiver wants the money in cash, you may transfer it to them through a service like Western Union or MoneyGram, and they can pick up the cash at a predetermined location in India.
The speed, ease of use, costs, and exchange rates should all be taken into account when selecting a method for sending money to India. Your receiver will receive the money swiftly and at a reasonable cost if you weigh your alternatives and select the best way.
How to transfer money to India from the UK at the best rate?
Transferring becomes easy when you map the overall process of the ‘what to do’ list before transacting. So, here are some suggestions to keep in mind in order to get the best rate for your money transfer:
- Compare conversion rates to find out how much money you will receive in Indian Rupees (INR) for your British pounds (GBP). Compare exchange rates offered by various suppliers to find the best price, then select the one with the highest rate.
- Be on the lookout for low fees: Money transfer companies may charge fees for their services in addition to exchange rates. Look for suppliers that perform transfers with minimal or even no fees.
- Pick an appropriate transfer technique: The cost and processing time for various transfer procedures vary. For instance, bank transfers could be more expensive yet slower than instantaneous transactions made through a money transfer service. Select the transfer method that best suits your needs after taking those into account.
- Avoid sending tiny amounts; certain companies may impose greater costs or provide inferior exchange rates. To reduce fees, combine your transfers into one larger payment if you can.
- If you need to make frequent or substantial transfers of money, you might wish to take into account hedging options like limit orders or forward contracts. You can lessen your exposure to currency volatility by using these tools to lock in a favourable exchange rate beforehand.
Xmonies is a well-known business that offers money transfer services from the UK to India. Compare and research different vendors to get the best deal for your specific transfer requirements.
