The cheapest way to send money from the UK to India

What does it cost to send money to India?

The cost of sending money to India is the fee you can see plus the exchange-rate margin built into the rate you are offered. The margin is the gap between that rate and the mid-market rate: the midpoint between the prices at which banks buy and sell a currency, which is the rate shown on Google and on our pound to rupee rate page.

The World Bank tracks what transfers cost. Sending £120 from the UK to India cost 1.91% of the amount on average in the third quarter of 2025: an average fee of £1.58 plus an exchange-rate margin of 0.59%. That is far cheaper than the worldwide average for the same quarter, when sending the equivalent of US$200 cost 6.36%.

The United Nations has set a target of cutting the average cost of sending money home to less than 3% by 2030.

How do you work out a provider's exchange-rate margin?

Subtract the provider's rate from the mid-market rate, then divide the result by the mid-market rate. For example, if the mid-market rate is ₹127.19 and a provider offers ₹125.29, its margin is about 1.5%. On £1,000, that margin costs you about £15, on top of any fee.

To compare the total cost of different providers:

1. Check the mid-market rate at the time you compare, for example on our GBP to INR page.
2. Note each provider's fee and exchange rate for the exact amount you plan to send.
3. Work out how many rupees arrive: the amount left after any fee, multiplied by the provider's rate.
4. Compare that with the full amount multiplied by the mid-market rate. The gap, converted back to pounds, is the total cost of the transfer.

Our free money transfer cost calculator does the sums for you with the live mid-market rate.

Which is cheaper: a low fee or a better exchange rate?

It depends on how much you send. A fixed fee weighs most on a small transfer, while the margin is charged on every pound, so it matters most on a large one.

In this example, the no-fee offer is cheaper on £100 (£2.00 against £3.48), but it costs more on £500 (£10.00 against £5.49) and far more on £2,000 (£40.00 against £12.98).

What else affects the cost of sending money to India?

How you pay and how the money travels can both add costs:

• How you pay. Paying your provider by UK bank transfer is usually the cheapest option. A credit card payment may be treated as a cash advance, which can mean an extra fee and interest from your card provider.
• SWIFT payments. An international SWIFT payment can pass through intermediary banks, and each can deduct a charge, so fewer rupees may arrive than you expected.
• Charges in India. Reserve Bank of India rules don't allow Indian banks to charge the recipient for incoming NEFT and RTGS payments. If you send a SWIFT payment, ask the recipient's bank whether it charges to receive it.
• Weekends. Currency markets close at the weekend, and some providers widen their margin until markets reopen.
• Introductory offers. A better rate on your first transfer may not apply to the next one, so compare the standard rate too.

Is it cheaper to send money with a bank or a money transfer provider?

Not automatically, so compare the total cost for the amount you send. UK banks usually send money abroad as an international SWIFT payment, with a fee, their own exchange rate and possibly charges from intermediary banks. Many money transfer providers pay out through India's domestic payment systems, such as IMPS and NEFT, instead.

Worldwide, banks were the most expensive type of provider in the third quarter of 2025, charging 14.99% of the amount sent on average, according to the World Bank.

Whichever you choose, check the firm is authorised or registered by the Financial Conduct Authority on the FCA Register.