The main routes and what each costs

You have four practical ways to move money from a UK bank to a US bank account: an international wire transfer through your UK bank, a specialist money transfer service, a peer-to-peer platform, or a multi-currency account. Each has different costs, exchange rates, and speed. Your UK bank will charge you a flat fee (typically £15 to £40) plus a less favourable exchange rate than the market rate. A specialist service like Wise, OFX, or MoneyGram usually charges less in total and gives you a better rate, but takes one to three business days. A peer-to-peer service like PayPal or Remitly works fastest for smaller amounts but charges percentage-based fees. A multi-currency account like Wise or Revolut lets you hold US dollars and transfer them at real market rates, but requires you to fund the account first.

The choice depends on how much you are sending, how urgently you need it there, and whether you send money regularly. A one-off transfer of £500 to a family member might be cheapest via Wise. Regular business payments might justify opening a multi-currency account. An emergency transfer might be worth paying your bank's higher fee for same-day delivery.

Key Takeaways

  • Your UK bank's international wire is the slowest and most expensive option, but it works if you have no other account and need certainty of delivery.
  • Specialist money transfer services like Wise, OFX, and Remitly typically charge 1 to 3 per cent in fees and give you a real market exchange rate, making them cheaper than your bank for most transfers.
  • You will need the recipient's US bank account number, routing number, and bank name to complete any transfer; without these details, the money cannot reach the account.
  • Transfers take one to three business days from a specialist service and one to five business days from your bank, depending on the service and whether weekends or bank holidays fall in between.
  • Exchange rates move constantly, so the amount in US dollars you receive will vary slightly even if you send the same amount in pounds on different days.

What information you need from the US recipient

Before you start any transfer, you must collect specific details from the person or business receiving the money in the USA. You will need their full name as it appears on their US bank account, their account number, and their bank's routing number. The routing number is a nine-digit code that identifies the specific US bank branch; it is not the same as a sort code in the UK. You should also ask for the bank's full name and address, though some services will find this automatically once you enter the routing number.

If the recipient does not know their routing number, they can find it on a cheque, by logging into their online banking, or by calling their bank directly. Entering the wrong routing number will send the money to the wrong bank, and recovery can take weeks. Ask the recipient to double-check the details before you proceed.

Using your UK bank for an international wire

Your UK bank can send money directly to a US account, but this is usually the most expensive route. You will pay an upfront fee (typically £15 to £40 depending on the bank), and the bank will explore its own exchange rate, which is usually 2 to 4 per cent worse than the real market rate. This means you lose money twice: once on the fee and once on the rate.

To send a wire through your bank, log into online banking or visit a branch with the recipient's US bank details. Your bank will ask you to confirm the amount in pounds, show you the amount in US dollars you expect to arrive, and take a payment from your account. The transfer usually takes one to five business days, depending on your bank and the US bank's processing speed. Some banks offer same-day delivery for an extra fee.

Use your bank only if you have no other option, the amount is small enough that the fee does not matter much, or you need the certainty of a direct relationship with your own bank. For amounts over £1,000, a specialist service will almost always save you money.

Specialist money transfer services

Services like Wise, OFX, Remitly, and MoneyGram are built specifically for international transfers and typically cost less than your bank. They charge a percentage fee (usually 1 to 3 per cent) or a flat fee plus a percentage, and they give you the real market exchange rate or very close to it. This means the total cost is transparent before you send.

To use a specialist service, you create an account online, enter the recipient's US bank details, and choose how much to send. The service shows you the exact amount in US dollars the recipient will receive, including all fees. You then fund the transfer from your UK bank account, usually by bank transfer or debit card. The money typically arrives in the US account within one to three business days.

Wise is the largest and most widely used in the UK. OFX is strong for larger amounts. Remitly is fast and straightforward for smaller transfers. Compare the total cost (fee plus exchange rate) on each service for your specific amount before choosing. Most services let you see the final amount the recipient gets before you confirm, so you can compare side by side.

Peer-to-peer and payment app transfers

Services like PayPal, Wise, and Remitly also offer peer-to-peer transfers if both you and the recipient have accounts with the same service. These transfers are often faster (sometimes within hours) and may have lower fees for smaller amounts. However, the recipient must already have an account set up, and fees can be higher than a direct bank transfer for larger sums.

PayPal charges a percentage fee (typically 2.5 to 3 per cent) for international transfers and applies its own exchange rate. Wise's peer-to-peer transfer uses the real market rate and charges a small percentage fee. These work well if you are sending money to someone you know and trust, and the amount is under £500. For larger or one-off transfers to a business, a direct bank transfer through a specialist service is usually cheaper.

Multi-currency accounts and holding US dollars

If you send money to the USA regularly, opening a multi-currency account with Wise or Revolut can save you money over time. These accounts let you hold US dollars in the same account as your pounds. You convert pounds to dollars at the real market rate (with a small fee), and then transfer the dollars to a US bank account whenever you want.

The advantage is that you can convert when the exchange rate is favourable, rather than being forced to convert on the day you send. You also avoid paying a fee each time you transfer; you pay once to convert and then transfer at no extra cost. The disadvantage is that you need to fund the account first, and you are holding money in a currency that might move against you.

This approach makes sense if you send money monthly or more often, or if you receive income in US dollars and want to manage the timing of conversion. For a one-off transfer, it adds an extra step and is not worth the effort.

Timing, exchange rates, and what can go wrong

International transfers take one to five business days depending on the service and the banks involved. Weekends and bank holidays do not count as business days, so a transfer sent on a Friday afternoon might not arrive until Wednesday. Some services may provide next-business-day delivery for an extra fee.

Exchange rates change constantly throughout the day. If you lock in a rate with a specialist service, that rate is usually held for 24 to 48 hours. If the rate moves against you during that time, you will receive slightly less in US dollars than you expected. This is normal and unavoidable; no service can may provide a rate will not move.

The most common problem is entering the wrong routing number or account number. If this happens, the money goes to the wrong account or is rejected. Contact your service or bank when ready; recovery usually takes one to two weeks and may involve a fee. The second most common problem is the recipient's bank rejecting the transfer because the name on the account does not match the name you provided. Always ask the recipient to confirm their name exactly as it appears on their bank account.

Frequently Asked Questions

How much does it cost to send money from the UK to the USA?

Your UK bank charges £15 to £40 plus a poor exchange rate, costing 3 to 5 per cent total. A specialist service like Wise charges 1 to 3 per cent total. For £1,000, your bank might cost £40 to £50 in fees and rate loss; Wise might cost £10 to £30. Always compare the total cost, not just the fee.

How long does a transfer take?

Specialist services take one to three business days. Your bank takes one to five business days. Same-day or next-day options exist but cost extra. Weekends and bank holidays do not count, so a Friday transfer might not arrive until Wednesday.

What if I send money to the wrong account?

Contact your bank or service when ready. If the money went to a different account at the same bank, recovery is usually quick. If it went to a different bank, it can take one to two weeks and may not be recoverable. Always double-check the routing number and account number before you send.

Can I send money to a business account in the USA?

Yes. You will need the business's account number, routing number, and the exact name as it appears on the account. Some services ask for an additional business identifier or tax number, but most accept a standard business account transfer the same way as a personal account.

Do I need to declare the transfer to the tax authorities?

That depends on the amount and your personal circumstances. Transfers between your own accounts are usually not taxable. Transfers to family or friends may be taxable gifts depending on the amount and your country's rules. Consult a tax adviser if you are unsure, especially for amounts over £10,000.