How I transfer money between the US and UK

One of those pesky little things that can easily be overlooked when moving abroad is how to manage the transfer of money between international bank accounts. Unfortunately, it can be an expensive oversight. In this post I’ll share my experiences and what I’ve done to make the best of a difficult situation.

Why do I even need to have bank accounts in both the US and the UK?

It’s a good question. I moved to the UK 5 years ago, so why haven’t I just moved all my money with me and closed my American account?

I decided to maintain my American finances for four main reasons:

1. First and foremost, I wasn’t sure how long I would be in the UK and it didn’t seem like a great idea to wire over all of my money to a brand new bank account in a brand new country.
   
2. My student loans would only allow me to make payments using an American bank account. Whether or not that is still the case, I don’t know, but it was a huge factor for me. This issue can come up with other transactions as well. Turbotax will only take an American card, so it’s helpful when tax time rolls around. (yes, Americans abroad still have to file taxes…)
   
3. I have an American credit card which doesn’t charge international fees and I wanted to be able to pay it off easily using dollars and not pounds. This helped particularly at the beginning of my time here in the UK because I wasn’t getting paid very much as a band 4 pre-registration nurse and needed to be able to supplement my income with the money I’d saved in America.
   
4. I have monthly subscriptions that I pay for in dollars and it would be easier (and in many cases cheaper) to leave them as is and just top up my American account every year or so.

Having bank accounts in two countries makes some things easier, but it is a balancing act. On a number of occasions one of my accounts has run low and I have to figure out the best way to transfer my hard-earned cash to the correct account without incurring massive fees.

So how do I transfer money between the US and UK?

After much research and consternation, I decided to try Wise (formerly Transferwise).

It’s always nice to make these choices and not regret them. Thankfully, going with Wise was a great choice and I’ve stuck with them ever since.

They are an established company with a great reputation… plus they are super fast and easy to use.

Why do I still use Wise?

Even though I don’t have to move money often, I love using Wise and I always come back to them when the need arises! With them, I can easily move money between my accounts. I’ve even used them to send money to friends and family in America, which can be useful from time to time.

These 4 things make moving money with Wise so simple:

• Clear graphs of the exchange rate
• Low fees
• Easy to use app
• Ability to send money to/from over 80 countries

Why does the exchange rate matter?

Did you know that each bank decides what their exchange rate will be, even if it doesn’t match what it is in “real time”? With Wise you will get as close to the real exchange rate as they can.

They even lock in a “guaranteed exchange rate” for a certain amount of time after you’ve checked, which gives you a little peace of mind (and a timeline for my fellow victims of procrastination).

Exchange rates are constantly changing but Wise shows you exactly how it’s been trending over the previous month. It may not seem like much, but it makes a huge difference if you are transferring when the pound is worth $1.15 vs $1.35. You may not always have much control, especially now, but even just a few cents to the pound adds up with larger transfers.

How are the transfer fees?

International transfers can get expensive. My UK bank would charge me about 3% which is about £30 per £1000.

But Wise made its name on transfers. It literally was called Transferwise!

With Wise, the fee for transferring £1000 would be between £4.64 and £7.62 depending on the method of transfer chosen (fees from the time of writing this). That’s a huge saving!

Click on the image below to get a fee-free transfer!

Is Wise an easy to use app?

You can use Wise on the desktop or on the mobile app. Both have a user-friendly interface and it takes you through step by step. If you’re not used to doing direct bank transfers, it may seem unusual to be putting in your bank details, but I’ve found it’s pretty typical in the UK to pay in this way. I guess that means I’ve slowly become accustomed to it, like so many other things…

Can I send money from anywhere?

With Wise you are able to send money to and from over 80 countries. This makes it accessible for loads of individuals! But, if your country isn’t on this list, you can vote for the currency you’re interested in.

See which currencies and countries are eligible for transactions through Wise.

I’ve been using Wise for 5 years now and I don’t have any qualms. It’s been perfect for what I have needed. If you decide it will work for you, too, please use my referral link above.

It doesn’t cost you any extra, in fact, you’ll get to transfer up to £500 for free!

You can transfer more than £500, of course – they will still remove the fee for the first £500.

Are there any Wise alternatives?

Yes, as a matter of fact there are! I don’t have any first-hand experience with them because Wise has suited my particular needs, but your needs may be different! These are a couple of the other options:

Disclaimer: I am not a financial advisor. I am only sharing my experience. Your circumstances and needs may be different from my own. Please do your own research, come to your own conclusions and seek qualified help for advice on your specific circumstances if needed. For more information on the use of this website see terms of use.