Are you traveling to the UK? Then you’ll need to exchange money via different modes of money transfer. But, if you’re not traveling, there can be many reasons for transferring money to the UK.
You may need to transfer money to a close relative of yours, or you may need to transfer money in your account abroad if you have one. Most students transfer money to the UK for educational purposes.
If you are preparing to study or send your child to study in the UK, you’ll need to transfer money as overseas educational fees. At times, you will need to transfer money for foreign investments you make.
If you purchase an asset in the UK, you don’t have to travel to the country. With digitalization, you can transfer money to a bank account in the UK and sign the verified papers online.
At times, there may be a medical emergency. Suppose your relatives stay in the UK, and you need to transfer money immediately, you will have to look for options to transfer your money.
If you need to transfer money for any of the reasons stated above, there are many options available today.
What are Wire transfers?
Wire transfer is a direct money transfer, which is made to a foreign bank overseas. In this case, it will be a bank in the UK. It is the most convenient and simplest way to make a money transfer abroad.
Banks apply certain charges on wire transfers, and you may have to pay extra for wire transfers.
The time taken by banks may be longer than the online forex platforms. You don’t have to visit any branch to make a wire transfer, and you’ll be able to book your order at any given point in time.
If you book a wire transfer via online forex websites, then there are zero transfer charges, which saves your money. Banks may usually charge between 500 INR to 2000 INR for wire transfers you make abroad. But, online forex sites charge no money.
For the process of wire transfer, you’ll need to check your eligibility for remittance. Once you’re eligible, you can make a booking by sending the receiver and sender’s data.
Most forex websites or banks also ask you about the purpose of wire transfers’ you make abroad; you’ll need to specify the transfer’s purpose.
What are Demand drafts?
Demand draft or foreign currency demand draft is perhaps the safest mode to transfer money abroad. Most people trust the traditional method of demand drafts for international remittance.
It is not only a secure way but also hassle-free and convenient. Most students prefer demand drafts for making educational remittance abroad. Demand drafts are physical paper drafts.
You can carry them when you travel to the UK or get the demand draft couriered at an address abroad. Demand drafts are perfect if you need to donate overseas or send cash as a gift to your relatives staying in the UK.
But, the Demand draft is still the slowest mode of sending money abroad and to any country. The process itself is time-consuming. Demand drafts will travel for days, and if it’s for international remittance, it may take weeks before it reaches the beneficiary.
As we have seen in a few cases, some of the universities only accept DDs as a mode of payment for tuition fee. In that case, you have no option left. As mentioned earlier, most students prefer demand draft as the safest mode of payment abroad and send it one month before admission.
The procedure for making a demand draft can be time-consuming as well. You’ll have to visit your bank if it is your preferred mode for sending the draft and fill out lengthy forms with reasons. The biggest con of demand drafts is that they may get torn or misplaced as it is a physical paper.
Wire transfers – The preferred form of sending money
Banks let you make transfers through online remittance and demand drafts. The most popular way, however, remains an online forex site. Online forex sites allow you to make wire transfers. The beneficiary abroad will receive the money within 48 hours of the transfer made.
Online forex websites also offer demand drafts, but the process could be slow compared to online remittance.
Wire transfer makes it easier for you to transfer funds from India to UK. You don’t have to visit banks or money vendors for the process of transfer. Online forex websites offer you complete expediency in the transfer process.
You can book your transaction from the comfort of your home with online forex sites offering the best exchange rates for transfer. Many online forex sites give you the benefit of freezing the live exchange rate.
You can choose a rate you think is the lowest and freeze the rate. Book your transaction at the lowest rate possible.
You’ll need to book your order and provide some documents. You’ll also need to provide the various details of the beneficiary. If you make a transfer process through the bank, you’ll have to pay 2 to 3% extra.
Banks may apply many charges on transfer. If you compare it with online forex websites, then it’s cheaper, as online forex sites don’t apply transaction fees or charges on the transfer process you make abroad.
How to transfer money from India to UK?
If you have no idea about the transfer process, you can get confused regarding which one is a better choice. Wire transfers are undoubtedly the best choice if instant transfers need to be made.
Step 1: In the wire transfer process, you’ll need senders and beneficiary’ details along with the purpose of the money transfer.
Step 2: You’ll need to upload the required documents and transfer funds by choosing the best rate possible.Online forex websites give you the option of low rates so that you can save your money on the transfer.
Step 3: After your process, a digital A2 form will be generated, and you will get an acknowledgment receipt once the whole process is complete.
If you compare it with Demand drafts, then wire transfer is the first option you should consider.
Demand drafts take time, and you will not transfer funds in one or two days. Demand drafts may take many days for transfer, which is a disadvantage.
Wire transfer is surely a speedy way to send money, and demand drafts may take time. But both modes are famous for sending money from India to the UK. We’d definitely recommend you to go with wire transfers if you are looking to remit money to UK as it’s more convenient.