Currency exchange & sending money between the UK and US

Q. What is the cheapest way to transfer money from the UK to the USA?

You can, but it usually costs you more than you realise. High-street banks tend to build their profit into the exchange rate itself, so the fee looks small while the rate is quietly worse than the one you see on the news. On a large one-off transfer, such as a property deposit, that gap can add up to hundreds or even thousands of pounds.

A specialist currency-transfer service generally gives you a rate much closer to the true "mid-market" rate, clearer fees, and, for larger transfers, a real person who can help you time it. For most cross-border moves it is worth comparing the all-in cost, which means the rate and the fees together, not just the headline fee.

Q. How do I choose a currency transfer provider?

• The all-in cost. Compare the exchange rate and any fee together. A "no fee" transfer with a poor rate can cost more than one with a small, clear fee.
• Regulation and safeguarding. In the UK, look for a firm authorised or registered by the Financial Conduct Authority (FCA) that keeps client money in segregated accounts.
• How you want to transfer. Some services are app-based and best for smaller, frequent transfers. Others give you a named dealer, which suits larger or less frequent transfers.
• Fixing a rate ahead of time. For a big future payment, some providers let you lock in today's rate with what is called a forward contract, so a moving market does not change your number.

Q. Should I keep my savings in pounds or dollars after moving to the US?

There is no single right answer, and this site will not give you one. It helps to understand currency risk: savings held in pounds are worth more or fewer dollars from month to month, even if the sterling balance never moves.

Factors people commonly weigh include where the money will be spent (everyday life in America is in dollars, while a UK mortgage, family commitments or a possible move home are in pounds), the fact that converting fixes the rate on that day, and the cost of converting. For US tax, interest earned in pounds is reported on your US return in dollars.

How much to hold in each currency depends on your plans and commitments, and is something to talk through with a suitably qualified professional.