Sending money home: comparing transfer options

Online money transfer services

Services such as Wise, Remitly, WorldRemit, Revolut and Xoom are usually much cheaper than banks. They differ in:

• Exchange rate margins (Wise uses the mid-market rate with a visible fee, others add a margin)
• Delivery methods: bank deposit, mobile wallet, cash pickup
• Speed: from seconds to two working days
• Limits for new customers

Cash pickup networks

Western Union, MoneyGram and Ria have huge agent networks, useful if your family does not have a bank account. Costs vary widely by corridor and payment method. Paying by bank transfer instead of card usually costs less.

Mobile money

In countries such as Kenya, the Philippines, Ghana and Bangladesh, sending directly to a mobile wallet (M-Pesa, GCash, bKash) is often the fastest and cheapest route. Many online services send to these wallets directly.

Compare fairly

The World Bank publishes average remittance costs by corridor. The global average cost has been above 6 percent for years, far above the UN target of 3 percent. You can do much better than the average by shopping around.

Safety first

• Use services regulated in the country you are sending from. In the UK check the FCA register, in the EU the national financial regulator, in Canada FINTRAC registration.
• Never send money to someone you have not met in person, especially in romance, job or visa scams
• Double check account details before sending, as reversing a transfer is very difficult

Save on regular transfers

• Send less often but larger amounts if fees are fixed
• Use rate alerts and send when the rate is favourable, but do not try to time the market for money your family needs now
• Pay by bank transfer rather than debit or credit card
• Check for first transfer promotions, then compare again for regular transfers

Tax and records

Sending your own money home is generally not taxed as income in the receiving country, but rules differ. Keep records of large transfers, especially if your family is buying property or you might need to prove your support for a visa application.

My personal routine

I send to my family in Iloilo twice a month. I compare two apps on the day, pay by bank transfer and send directly to my mother's GCash. It takes minutes and costs me around 1 percent in total, compared with more than 5 percent when I used a cash counter in my first year abroad.

This guide is general information for planning. Rules and prices change, so always confirm with the official source before you apply or sign anything.