If you're transferring money to the United States, or a US Dollar bank account, you could get a better foreign exchange deal by using a money transfer specialist.
How should you transfer money to the USA?
If you’re transferring money to the USA, you have a number of options to choose from. Most people will choose to use their high street bank. However, if you transfer money frequently, or you’re transferring a large amount of cash, there are better options available.
Of course, because we rarely transfer cash abroad most people don’t know about these alternative options, and banks can take advantage of this by offering poor exchange rates or applying high fees to transfers.
Money transfer providers are specialists in transferring money overseas, cheaply. Although they are not necessarily household names, there is a thriving market for money transfers, so competition is fierce. By using one of these services you can save on fees, and get a better exchange rate on your transfer.
How safe are money transfer services?
One of the main reasons that people use their bank to complete their money transfer is that banks and building societies are known to offer deposit protection through the FSCS. This ensures that deposits up to £85,000 (per institution) are protected by the UK government and are paid out to account holders in the event that the financial institution fails.
What fewer people know is that many money transfer suppliers also offer the same FSCS protection. Of course, once your money has been transferred, you may lose this protection. However, if your money is being transferred to the bank of an organisation based in the USA, it is likely to gain some protection from the FDIC (Federal Deposit Insurance Corporation), which is the US equivalent to the FSCS (click here to check coverage for the bank you are transferring to).
Of course, protection is one thing, but ideally, you don't want to have to wait to reclaim money from an organisation that has gone bust. Therefore, to help ensure you only use a reputable transfer service, we check the credit rating and history of every supplier we feature in the table above.