Sending money to or from the UK: Wise vs Revolut vs banks

Why the exchange rate matters more than the fee

When comparing international transfer services, most people look at the listed fee and miss the more expensive line: the exchange rate margin.

Banks do not give you the mid-market rate — the rate you see on Google or XE.com. They apply a markup of roughly 2–4% before quoting you. On a £5,000 transfer, a 3% margin costs £150 extra. Add a flat transfer fee of £20 and you are paying £170 for the privilege of using your bank.

Wise and Revolut use the mid-market rate, or something very close to it. That single difference is why they beat banks on anything over about £500.

What a high-street bank actually charges

Sending money internationally via a UK high-street bank — Barclays, HSBC, NatWest, Santander, Lloyds — generally involves:

• A sending fee of £15–25 charged by your UK bank
• A possible receiving fee of £5–15 charged by the recipient's bank
• An exchange rate margin of 2–4% worse than mid-market

For a £3,000 transfer to India, the mid-market rate might give the recipient ₹324,000. Your bank's rate might give them ₹315,000 — a 2.8% shortfall — plus a £20 transfer fee. Total extra cost compared to Wise: roughly £105–130 on that one transfer.

Speed adds to the frustration. SWIFT transfers can take 2–5 working days.

The exception is SEPA transfers between EU accounts, which are same-day and usually free. But that only applies if both accounts hold euros at EU banks.

Wise

Wise (formerly TransferWise) is an FCA-authorised payment institution. Rather than routing money across borders via SWIFT, it holds local currency pools in dozens of countries and settles each end as a domestic payment. That is why it costs less.

How Wise fees work

Wise charges two things:

• A fixed fee: usually £0.25–1.50, depending on payment method
• A percentage fee: 0.33–1.5% of the amount, depending on the currency pair

Both are shown before you confirm, alongside the exact mid-market exchange rate and the exact amount the recipient will receive. No surprises.

Paying by bank transfer costs less than paying by debit or credit card. For amounts above £500, always pay by bank transfer.

Which currency corridors Wise handles well

Wise is most competitive on high-volume corridors:

• GBP → INR (India): strong, sub-1% fee on most amounts
• GBP → CNY (China): competitive, though CNY transfers can take 1–3 extra days due to Chinese banking controls
• GBP → PKR (Pakistan), GBP → AED (UAE), GBP → NGN (Nigeria): all well-served
• GBP → EUR and GBP → USD: often the cheapest option

On low-volume corridors the fee can be higher. Use the Wise fee calculator before assuming.

Sending a large transfer with Wise

1. Create a free account at wise.com. Verify your identity with your passport or BRP/eVisa — this usually takes a few minutes on a first-time account.
2. Set the amount in GBP and choose the recipient's currency.
3. Wise locks in the mid-market exchange rate for 24 hours and shows the exact fee upfront.
4. Add the recipient's bank details (IBAN for Europe, sort code + account number for UK, IFSC + account number for India, ABA routing + account for US).
5. Pay by bank transfer from your UK account. The payment reference is your Wise transfer ID.
6. Track in the Wise app. Most transfers to major corridors arrive in 1–3 working days.

Wise Payments Limited is listed on the FCA register↗ as an authorised payment institution.

The Luodi app's money transfer guide covers setting up Wise alongside your other first-month admin tasks.

Revolut

Revolut is a financial super-app with a UK current account, multi-currency wallets, and international transfer capabilities. It is also FCA-authorised.

How the exchange rate and monthly limits work

The Standard (free) plan lets you exchange up to £1,000/month at the mid-market rate. Above that, a 0.5% fair usage fee applies.

On weekends, Revolut adds a small weekend markup (0.5–1%) because currency markets are closed and Revolut bears the rate risk. Make large currency exchanges on a weekday if you can.

Paid plans (Plus at £2.99/month, Premium at £6.99/month) raise the fee-free limit. For students making one or two large transfers a term, the Standard plan is sufficient. Revolut's plan details and prices change — check the current pricing on their website before a large transfer.

Peer-to-peer transfers

If both you and the recipient have Revolut accounts, transfers are instant and free regardless of amount. This makes Revolut the best option for splitting household bills, sending rent contributions to a flatmate, or receiving small amounts from friends.

Sending money externally via Revolut

1. Top up your Revolut GBP balance by bank transfer (free, usually instant from a UK current account).
2. In the app, go to Payments → Send Money and enter the recipient's bank details.
3. Select the destination currency. Revolut converts at mid-market up to your monthly limit, then adds 0.5%.
4. Confirm and track.

External international transfers take 1–3 working days. UK domestic transfers usually arrive the same day.

Wise vs Revolut vs your bank

Fees and limits are approximate and change. Verify on each provider's website before a large transfer.

Which to use in different situations

Sending £1,000+ home or to family: Use Wise. The mid-market rate and transparent fee beat banks on most corridors. A £5,000 transfer can save £100–200 versus a high-street bank.

Regular small transfers under £500: Either service works. Revolut is convenient if you already have the app and are within your monthly limit.

Splitting bills or sending to someone also on Revolut: Use Revolut peer-to-peer — instant and free.

Paying UK tuition fees: Bank transfer from your UK current account (sort code + account number, with your student reference as the payment reference). If sending from abroad, Wise is cheaper than your home bank. Most universities accept payment from any UK-issued account.

Spending in a foreign currency on a card: Revolut's card is well-suited here. Wise also offers a Wise card.

Receiving money from abroad

If your family sends maintenance funds or tuition money, they can send directly to:

• Your UK current account: they need your sort code and account number. Opening a UK bank account with Monzo or Starling takes 10–15 minutes and no proof of UK address.
• Your Wise account: Wise gives every free account a UK sort code and account number. Family can send to it from any local bank.
• Your Revolut account: Revolut also provides UK bank details on request.

If your family is sending from India, China, or Pakistan, the cheapest route for them is a Wise transfer from their local bank — cheaper than a direct SWIFT transfer to your UK current account.

Tax: is money received from abroad taxable?

No. Transfers from family covering tuition, rent, or living costs are not income and are not taxed in the UK.

Income tax applies to earnings: wages, self-employment income, dividends. A bank transfer from your parents is none of those.

If you work part-time in the UK and also earn money abroad — freelance work for a foreign client, for example — those foreign earnings may need to be declared. The HMRC page on foreign income and UK tax↗ covers the rules in detail.

Checking a provider is legitimate

The international transfer market includes fraudulent services. Before using any provider:

• Search for the company on the FCA register↗. Authorised firms must segregate customer funds from company money.
• The FCA consumer hub↗ publishes warnings about unauthorised firms and clone websites.
• An exchange rate above mid-market does not exist. If a rate looks too good to be real, it is not real.

FAQ

Is Wise cheaper than Revolut for sending money from the UK?

For amounts over £1,000 in a single month, Wise is cheaper. Revolut charges 0.5% above its monthly fee-free limit, while Wise's fee is shown upfront from the first pound. For smaller amounts within Revolut's limit, both cost similar amounts.

Can I use Wise to pay my UK university tuition fees?

Yes. Enter the university's sort code and account number in Wise, add your student ID as the payment reference, and send. Most universities accept payment from third-party accounts — check your student finance portal to confirm the bank details and acceptable payment methods.

Do I need to tell HMRC about money my family sends me?

No. Support payments from family are not income and do not need to be declared. If you earn money abroad and bring it to the UK, check the HMRC foreign income guidance↗.

Are Wise and Revolut safe?

Both are FCA-authorised payment institutions, meaning they must hold customer funds in segregated accounts separate from company money. They are not banks and are not covered by the FSCS deposit guarantee, but for transferring money rather than saving it, the regulatory protections are substantial.

What if a transfer is delayed or goes missing?

Contact the provider's support team immediately with your transfer reference number. FCA-regulated firms are required to investigate and resolve payment issues. If a transfer has not arrived within 5 working days, escalate and ask for a case reference number.