Find the best exchange rate and low fees when you send money to Uruguay from the UK.
From bank transfers and online transactions to options that allow recipients to collect your funds within minutes, sending an international money transfer to Uruguay is easy. However, do your research and shop around for the best available deal. And this guide will help you do just that.
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Case study: Money transfer companies compared
Work took Lucia Rodriguez to the UK, and she is to remain here indefinitely. Her mother, younger sister and ailing grandmother continue living in Uruguay. Lucia has to keep sending money back home so her family can meet everyday expenses and pay for her grandmother’s treatment. She figures around £750 every month should suffice.
Lucia checked with her bank to see if she could use its services for the transfer. However, since the Uruguayan peso is an exotic currency, her bank did not transfer funds to Uruguay. She decided to compare money transfer companies using the internet. This is what she found.
|Money transfer service 1||Money transfer service 2|
|Exchange rate||£1 GBP = $35.155 UYU||£1 GBP = $34.726 UYU|
|Amount received for £750||$26,366.25 UYU||$26,044.50 UYU|
|Transfer time||1 day||1-2 days|
|Transfer options||Cash pickup||Bank account|
|Difference of||$321.75 UYU|
While the first money transfer company offered a better exchange rate than the second, the latter did not charge any fees for its services. This resulted in Lucia’s mother receiving more money through the second service provider. Besides, she was more than happy to transfer the money directly into her mother’s Uruguayan account. Going forward, Lucia decided to keep comparing her options every now and again.
How do I compare transfer companies when transferring money to Uruguay?
Don’t go with the first money transfer company that comes your way. Instead, compare your options across different aspects.
- The monetary aspect. The case study goes to show that a lower exchange rate does not necessarily mean you’re getting a better deal. Some money transfer companies that provide no-fee services may offer unfavorable exchange rates. The reverse can be true as well. To find out which deal is best, simply compare how much money the recipient stands to receive.
- Methods to send money. Banks that let their customers transfer funds to Uruguay can offer their services at branches, online and over the phone. Some money transfer companies have stores and kiosks that you can visit to send money. Some let you initiate the process over the phone as well. A number of these companies operate in the online world.
- Methods to receive money. The recipient can receive money directly into an Uruguayan bank account. Collecting transferred funds in person by visiting a cash pickup location is also an option.
- Different methods. Are you looking at sending money to Uruguay on a regular basis? If so, you can find money transfer companies that let you make scheduled payments. Some even offer forward contracts, which allow you to lock in an ideal exchange rate now and transfer the money later.
- Using the same bank. If you and the recipient have accounts with the same bank, you can consider using its services for the transfer. You could end up saving time as well as money.
- Turnaround time. When a funds transfer involves a cash pickup, it goes through almost immediately. When you’re transferring funds into a bank account, the time the process takes depends on the service provider you choose as well as the recipient’s bank.
- Minimum limit. If you’re planning to send a small sum, this aspect requires your attention. Some money transfer companies don’t let you send less than £500 or £1,000.
Foreign exchange rates explained
The exchange rate determines how much one country’s currency is worth in another currency. When a country’s currency is strong, it will yield more money when exchanging it in a country with a weak currency. For example, in December 2016, the pound was worth approximately 26 Mexican pesos. However, most countries’ exchange rates are flexible, which means it can change from moment to moment. Factors that influence the exchange rate include interest rates, economic stability and inflation.
What are my options for sending money to Uruguay from the UK?
- Bank transfers. Bank-to-bank transfers may cost more than other options but they are a secure way to send money to Uruguay.
- Online money transfer providers. A reliable online money transfer company can offer fast and cost-effective transactions.
- Money transfer companies with cash pickup options. MoneyGram and Western Union are the world’s two largest providers of this service.
- PayPal. PayPal offers secure international money transfers to Uruguay and many other destinations around the world.
- Checks. International checks can be obtained from U.S. banks and then sent overseas.
What are the steps to send money to Uruguay?
The steps involved in sending money to Uruguay depend on the method you choose.
- Transfer to bank account. Keep the recipient’s name, account number, bank’s name and bank’s routing number handy. If you’re using a money transfer company or a bank other than your own, you’ll have to provide your bank account, debit card or credit card details as well. Processing time depends on the service provider you choose, and can vary from one to 12 days.
- Cash pickup. You can initiate the process by visiting a storefront. Provide cash or pay using your debit or credit card. You’ll have to provide the recipient’s name along with a desired cash pickup center. If you’re sending money online, you’ll have to provide details of your bank account, debit card or credit card. Cash pickup transfers tend to go through almost immediately.