Send money to Iceland: Best money transfer services | finder.com

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Send money to Iceland

Save time and money when sending money to Iceland from the US.

When you want to send money to Iceland, high fees and a complicated process can have a chilling effect on the endeavor. Money transfers from the United States to Iceland don’t have to be expensive and confusing — compare transfer fees and exchange rates to find the best deal.

Send money to Iceland with WorldRemit

WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.

  • No minimum transfers.
  • Wide range of destinations.
  • Competitive exchange rate.
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Compare money transfer services to Iceland

Enter the amount you want to send and select Calculate to compare minimums, turnaround and fees. Select Go to site to sign up and send money.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 1 Same day USD 0.00 125.981 ISK 629,903 XE has fast transfers with no fees and a range of foreign currency tools. Go to site Show details
$1 Within an hour USD 3.99 126.018 ISK 629,590 WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups. Go to site Show details

Compare up to 4 providers

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

Best ways to send money to Iceland

Online money transfer providers typically offer the strongest exchange rates and lowest fees on money transfers to Iceland. Some offer cash pickup in as little as a few minutes, while others transfer to bank accounts.

1. Digital money transfer services

Companies like PayPal and XE specialize in foreign currencies, making them some of the most cost-effective ways to send money to Iceland. Most offer transfers directly to your recipient's bank account in Iceland, often in as little as a day or two.
  • Why? Digital money transfer services are cheaper because they exist online and don't have as many employees or physical locations.

2. Cash transfers

Services like WorldRemit and Western Union allow you to transfer cash for pickup at a local branch in Iceland— often in 15 minutes. While it's a fast way to send money, you'll pay for the convenience in weak exchange rates and high fees.
  • Why? Picking up cash is more expensive because more people are involved.

3. Banks

The Icelandic krona may be offered by your bank, but beware of high fees and wide margins on the exchange rate. Compare bank transfers to digital services and other options before sending a wire transfer to Iceland.
  • Why? Banks offer money transfers as a secondary service so don't strive to offer competitive prices.

Let's crunch the numbers: Sending $1,000 to Iceland

Let's say you need to send $1,000 to family in Iceland. Here's what you might face as far as fees and exchange rates using today's rate of 1 USD = 126.600 ISK.
Digital money transfer service Cash transfer Bank transfer
Fee $0 $4 $25 + additional correspondent bank fees
Exchange rate 1 USD = 126.220 ISK 1 USD = 125.967 ISK 1 USD = 120.270 ISK
Transfer speed 1-2 days Minutes 2-5 days
Amount received ISK$126,220 ISK$125,464 ISK$117,263
Verdict
  • Best value
  • Fastest
  • Slowest and most expensive

The bank option ends up being the slowest and gets the smallest amount of money to your recipient in Iceland. A digital transfer sends the most, which is ISK$8,957 more than the bank. For speed, a cash transfer can typically have your transfer to Iceland in as little as 15 minutes. Make sure there's a cash pickup location near your recipient before sending.

How to send money to Iceland online

Sign up and send money to Iceland with a digital money transfer specialist in four steps:

  1. Sign up for a free account. Compare and pick a provider before signing up for a free online account using your contact information, proof of ID and preferred payment method.
  2. Provide transfer details. Submit your recipient's contact information and pick a delivery method. If transferring to a bank, you'll need their bank account details in Iceland.
  3. Confirm transfer details. Double-check your payment method, expected fees and destination.
  4. Save your receipt. Record your receipt's confirmation number to track the progress of your transfer to Iceland. Some money transfer providers send a text or email when your transfer is complete.

Get the most out of your money transfer to Iceland

Weigh costs and fees against convenience to best compare money transfer providers that send to Iceland. Consider:

  • Exchange rates. The USD–ISK relationship fluctuates, so using a service that allows you to lock in exchange prices may help you save money down the line if the Icelandic krona rises against the US dollar.
  • Transfer fees. Transferring money overseas nearly always requires fees, but they might be hidden in the exchange rate. When sending large amounts, it may be cheaper to pay a flat fee to secure a stronger USD–ISK exchange rate.
  • Transfer limits. How much you can send varies by company, and different amounts can attract higher or lower fees. Shop around for the best deal on the amount of Icelandic kronas you're sending to Iceland.
  • Turnaround. Transferring money through a local bank can take a business week or longer. If you need the funds delivered quickly, seek out a digital specialist that offers instant transfers to Iceland.
  • Sending limits. Comparing prices for one large transfer instead of many small transfers is typically easier, so picking the service you use based on how much you're sending is a valid strategy for saving money.
  • Transfer methods. Whether you want money sent to a bank account in Iceland or picked up as cash at a local agent, narrow down a company that matches your preferred delivery method.

How to send money to Iceland without a bank account

If you don't have a bank account, look for a local company that supports storefronts for cash payments. These services include agent locations in other countries that allow your recipient to pick up Icelandic kronas without a bank account.

Emergency cash transfer

When urgency trumps cost to get your money to Iceland quickly, look for money transfer companies that support cash pickup in minutes. You can pay with a credit or debit card for fast pickup, but fees are higher than other methods.

Iceland's exchange rates explained

Banks and money transfer companies use exchange rate to calculate how much Iceland's currency is worth when converted to USD. The USD-ISK relationship can change daily based on global economic stability, interest rates, inflation and more.

Today's exchange rate USD to ISK

1
0
Updated: 16 Apr 2021 11:23:00 UTC

What to watch out for

Sending money to relatives or family members in Iceland may be subject to taxes on the money transfer and certain documents may be required.

Taxes on transfers to Iceland

In general, any large transfers being sent from the US to Iceland should be filed with the IRS to avoid any penalties.

Required information

Receiving money in Iceland:

  • Transfer confirmation details like a transfer number, an MTCN, a reference number or a tracking number, depending on the company.
  • Government-issued ID like a passport or similar official ID may be required to pick up your transfer.
  • Sender's information. Take along your sender's full name, the sending country and their address, if known.

Sending to Iceland from the US:

  • Proof of identification like a government-issued ID or your SSN number.
  • Recipient information like their name, address and bank account information in Iceland.

Bottom line

Sending your hard-earned money to Iceland shouldn't cost a fortune. Compare money transfer companies that specialize in foreign transactions for the strongest rates, lowest fees and flexible delivery. For transfers to other countries, rely on our country-specific guides the next time you need to make a transfer.

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