Best Ways to Send Money Home from the US

Compare the cheapest and fastest ways to send money internationally — Wise, Remitly, Western Union, and bank transfers compared.

Sending money to family back home is one of the first things newcomers need to figure out. The wrong method can cost you hundreds of dollars a year in fees and bad exchange rates. Here's how to do it right.

The Real Cost of Sending Money

When you send money internationally, you pay two costs:

1. Transfer fee — the upfront fee the service charges
2. Exchange rate markup — the hidden cost where services give you a worse exchange rate than the real one

Most people only look at the transfer fee. The exchange rate markup is often 3-5x more expensive.

Best Services Compared

1. Wise (formerly TransferWise)

The gold standard for international transfers.

• Fee: 0.5-1.5% of transfer amount
• Exchange rate: Real mid-market rate (no markup)
• Speed: 1-2 business days
• Best for: Regular transfers, large amounts

Example: Sending $1,000 to South Korea — you pay about $7-10 in fees and get the real exchange rate. Total cost: ~$10.

2. Remitly

Great for smaller, frequent transfers.

• Fee: $0-5 depending on speed and method
• Exchange rate: Small markup (0.5-2%)
• Speed: Minutes to 3 business days
• Best for: Small amounts, fast delivery, specific countries

3. Western Union

The traditional option with the widest reach.

• Fee: $5-50+ depending on method and amount
• Exchange rate: 2-5% markup
• Speed: Minutes to days
• Best for: Cash pickup in remote areas

4. Bank Wire Transfer

Your bank can send money directly, but it's the most expensive option.

• Fee: $25-50 per transfer
• Exchange rate: 2-4% markup
• Speed: 3-5 business days
• Best for: Very large amounts where security is priority

Cost Comparison: Sending $500

Pro Tips

1. Never use your bank for international transfers — the fees and exchange rates are the worst
2. Compare rates at the moment of transfer — exchange rates change constantly
3. Set up rate alerts on Wise — get notified when the exchange rate is favorable
4. Send larger amounts less frequently — one $1,000 transfer costs less in fees than four $250 transfers
5. Use a debit card or bank transfer to fund — credit card funding adds extra fees
6. Keep records — you may need to report foreign transfers over $10,000 to the IRS (FBAR)

Bottom Line

For most newcomers, Wise is the best option. It has the lowest total cost, transparent pricing, and a great app. Set it up once and you'll save hundreds of dollars a year compared to traditional methods.