Comparison Guide · Updated June 2026
Money Transfer Service vs Bank Transfer UK 2026: Real Cost Comparison
Sending £5,000 abroad via your high-street bank can cost £150–£250 more than using a specialist service — not because of fees, but because of the hidden FX margin baked into the exchange rate. This guide compares Wise, Revolut, PayPal and bank wire on spread, fees, speed and regulatory protection, with a worked example showing exactly how much of your GBP arrives in PLN, UAH, RON and EUR in 2026.
At a Glance: Provider Comparison 2026
| Provider | FX Rate | Fee (£5k GBP) | Speed | Regulation / Protection |
|---|---|---|---|---|
| Wise | Mid-market rate | ~£35–£55 (0.7–1.1%) | Minutes–1 day | FCA-authorised; funds safeguarded |
| Revolut (Standard) | Mid-market (weekdays); +1% weekends | ~£0–£30 (0–0.6%) | Minutes–1 day | FCA e-money licence; safeguarded |
| Remitly / WorldRemit | Near mid-market | ~£20–£50 (0.4–1%) | Minutes–2 days | FCA-authorised; safeguarded |
| PayPal (to PayPal) | Mid-market +2.5–4% | ~£150–£250+ (margin) | Instant to account | FCA-authorised; not FSCS |
| UK High-Street Bank (SWIFT) | Mid-market +2–4% | £15–£25 flat + margin | 2–5 working days | FCA-regulated; deposits FSCS to £85k |
| Barclays / NatWest / HSBC | Own rate (~2–3.5% margin) | £15–£25 flat fee | 2–5 working days | FSCS deposit protection |
| Starling / Monzo (FPS) | Near mid-market for SEPA | £0 or small %, SEPA only | Hours | FCA-authorised; FSCS bank deposits |
Indicative 2026 figures. Rates, fees and limits change constantly. Always compare the live destination amount on the day you send.
The Hidden Cost: FX Spread Explained
Every international transfer involves two potential costs: a visible transfer fee and an invisible exchange-rate margin. Banks and some payment providers profit primarily from the margin — the gap between the mid-market rate and the rate they offer you.
The mid-market rate is the midpoint between the buy and sell price in the wholesale interbank market. It is what you see on Google, XE.com or Reuters. No retail provider offers exactly this rate for free — they must cover costs — but the spread varies enormously:
- Wise: Converts at the mid-market rate and charges a transparent percentage fee (typically 0.35–1.5% depending on the currency pair). GBP→PLN is typically around 0.6–0.8%.
- Revolut Standard: Mid-market rate on weekdays with no fee up to a monthly limit; a 1% fair-usage fee applies on weekends when liquidity markets are closed. Premium/Metal plans have higher fair-usage limits.
- PayPal (converting GBP to another currency): Applies a conversion fee of 2.5–4% above mid-market. On £5,000 that is £125–£200 before any transfer fee.
- UK high-street banks: Typically 2–4% margin on the exchange rate plus a flat international transfer fee of £15–£25 per transaction. Some also charge a receiving fee at the beneficiary bank.
The key principle: compare the total amount the recipient receives, not the headline fee. A “zero-fee” transfer at a 3% margin always costs more than a 1% fee at mid-market on any transfer above £1,000.
Worked Example: £5,000 GBP to Four Currencies (June 2026)
Using approximate mid-market rates as of June 2026: GBP/PLN 5.10, GBP/UAH 54.5, GBP/RON 5.78, GBP/EUR 1.195.
£5,000 GBP transferred — estimated destination amount received
GBP → PLN (Poland)
| Provider | Effective rate | Fee (£) | PLN received |
|---|---|---|---|
| Wise | 5.096 | ~£37 | 25,480 PLN |
| Revolut Standard | 5.100 | £0 (within limit) | 25,500 PLN |
| PayPal | 4.946 | £0 fee + margin | 24,730 PLN |
| High-street bank | 4.947 | £20 flat | 24,515 PLN |
Bank vs Revolut difference: ~985 PLN (≈£193) on £5,000.
GBP → UAH (Ukraine)
| Provider | Effective rate | Fee (£) | UAH received |
|---|---|---|---|
| Wise | 54.2 | ~£45 | 271,000 UAH |
| Remitly (Express) | 54.0 | ~£30 | 270,000 UAH |
| Revolut Standard | 54.5 | £0 (within limit) | 272,500 UAH |
| High-street bank | 52.9 | £20 flat | 264,000 UAH |
Bank vs Revolut difference: ~8,500 UAH (≈£156) on £5,000.
GBP → RON (Romania)
| Provider | Effective rate | Fee (£) | RON received |
|---|---|---|---|
| Wise | 5.760 | ~£40 | 28,800 RON |
| Revolut Standard | 5.780 | £0 (within limit) | 28,900 RON |
| PayPal | 5.607 | £0 fee + margin | 28,035 RON |
| High-street bank | 5.607 | £20 flat | 27,835 RON |
Bank vs Revolut difference: ~1,065 RON (≈£184) on £5,000.
GBP → EUR (Eurozone)
| Provider | Effective rate | Fee (£) | EUR received |
|---|---|---|---|
| Wise | 1.191 | ~£28 | 5,955 EUR |
| Revolut Standard | 1.195 | £0 (within limit) | 5,975 EUR |
| Starling (SEPA) | ~1.193 | £0 | 5,965 EUR |
| High-street bank | 1.152 | £20 flat | 5,640 EUR |
Bank vs Revolut difference: ~335 EUR (≈£280) on £5,000. SEPA transfers via Starling/Monzo are competitive for EUR.
All figures are illustrative estimates based on approximate June 2026 rates. Actual amounts vary by the minute. Always compare the live “you send / they receive” figure before committing.
Regulatory Protection: FSCS vs Safeguarding
This is one of the most important and misunderstood differences. UK banks that hold your current or savings account deposits are covered by the Financial Services Compensation Scheme (FSCS) — if the bank fails, up to £85,000 per person per institution is protected by the government. This does not apply while money is in transit through a payment institution.
Specialist transfer services such as Wise and Revolut are authorised as Electronic Money Institutions (EMIs) or Payment Institutions — not banks. Instead of FSCS protection, they are required by FCA rules to safeguard customer funds: holding them in segregated accounts at major UK banks, ring-fenced from the company's own money. If the provider fails, the safeguarded funds are returned to customers — but the process may be slower than FSCS claims and there is no government guarantee.
In practice, for the seconds or minutes a transfer is in flight, the regulatory difference is largely academic. For large sums sitting in a Wise multi-currency account or Revolut balance for weeks, safeguarding is weaker than FSCS protection. The practical rule: do not use a payment provider as a savings account. Transfer the money promptly and keep savings in an FSCS-protected account.
Specialist Services: Who Are They?
The main FCA-authorised specialist providers used from the UK in 2026:
- Wise (formerly TransferWise): Converts at the mid-market rate with transparent fees. Best for regular remittances, freelancer payments, and large transfers. Multi-currency account available. FCA reference 900507.
- Revolut: Mid-market rate up to a monthly limit on Standard plans; higher limits on paid tiers. Particularly strong for EUR, PLN, RON corridors. Instant to other Revolut users.
- Remitly: Specialises in remittance corridors including Ukraine (UAH), Philippines, India. Often offers express delivery (minutes). Competitive for cash pickup options. FCA-authorised.
- WorldRemit: Wide corridor coverage including Ukraine. Cash pickup in 130+ countries. Transparent fees and near-market rates.
- PayPal: Widely used but the FX margin (2.5–4%) makes it expensive for currency conversion. Better as a payment network; avoid using it for currency exchange on large sums.
We do not earn commission on any of the above and do not rank them. Always verify current FCA registration at the FCA Financial Services Register before sending money.
When Your Bank is Still the Right Choice
Banks are not always the worst option. Consider using your bank when:
- Very large amounts: Banks will sometimes negotiate a bespoke rate for transfers of £50,000+ — call the business banking or treasury desk rather than using the online tool.
- Compliance or audit requirements: Solicitor and accountant transactions often require funds to originate from a named bank account. Some mortgage completions and business acquisitions require bank-to-bank SWIFT transfers.
- Obscure corridors: A specialist service may not support every country or currency. Major banks cover almost all SWIFT destinations, even if the rate is poor.
- FSCS comfort: If keeping money in transit for several days and you want government-backed protection on a very large sum, a bank-to-bank transfer keeps funds within FSCS coverage for longer.
- Starling or Monzo for EUR: These newer FCA-authorised banks offer near-market SEPA EUR transfers with no fee — competitive with Wise for the EUR corridor specifically, and with full FSCS protection on your account balance.
Tips for Getting the Best Rate
- Always compare the received amount, not the fee. Use each provider's live calculator and enter your exact amount for the exact corridor.
- Avoid weekend transfers on Revolut Standard — the 1% weekend surcharge adds ~£50 on £5,000. Schedule for Monday morning if timing allows.
- Send in GBP; let the provider convert. Sending GBP to a foreign bank account often triggers a second conversion at the receiving end at a worse rate.
- Watch for rate alerts. Wise and Revolut both offer rate notifications. For large, non-urgent transfers, set an alert for a favourable rate.
- Check limits. Revolut Standard has a £1,000/month fee-free FX limit; sending £5,000 in one go may trigger the 0.5–1% excess fee unless you are on a paid plan.
- Batch regular remittances. On Wise, two £500 transfers cost roughly double one £1,000 transfer (the fee has both a fixed and a percentage component). Combine transfers where possible.
- Verify recipient bank details. IBAN errors on international transfers can mean funds are held for weeks. Double-check with the recipient before sending.