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The short answer
At £500, the fee and the exchange margin are of similar size, so neither can be ignored. A £5 fee is 1% of £500 and a 2% margin costs £10; at UK banks' published fees and margins, the total on £500 can range from about 2% to over 5%. Compare offers by the naira received for every pound you pay, at the same moment.
£500 is a typical amount for a school term's fees for a younger child, a month's support for parents, or a contribution to a family event. It is also the size at which the cost of sending changes character: fixed fees no longer dominate, as they do at £50, but the margin has not yet taken over, as it does at £5,000. This guide shows where the cost of a £500 transfer sits and how to check it.
The two parts of the cost
- The fee. Often flat, sometimes zero, sometimes linked to how you pay. At £500, each £1 of fee is 0.2% of the amount.
- The exchange margin. The difference between the rate you get and the mid-market rate, charged as a percentage of the amount converted. At £500, each 1% is £5.
So a £5 fee and a 1% margin cost the same on £500. That is the point at which you have to look at both.
What UK banks' published figures imply on £500
These figures come from each bank's own page as at October 2026. Margins are stated maxima or indicative figures, not the rate on your screen, and this is not a ranking.
| Bank | Stated fee | Stated margin | Implied on £500 |
|---|---|---|---|
| Lloyds | £9.50 (non-euro) | 3.55% indicative up to £10,000 | £9.50 + £17.75 = £27.25 (5.5%) |
| Nationwide (most accounts) | £15 SWIFT | 2.2% mark-up | £15 + £11 = £26 (5.2%) |
| Nationwide FlexOne, FlexStudent, FlexGraduate | None | 2.2% mark-up | £11 (2.2%) |
| NatWest (online) | None | Not more than 3.25% | Up to £16.25 (3.25%) |
| Barclays (app or online) | Barclays' fees, if any, with your chosen charge option | No greater than 2.75% | Up to £13.75 plus any fee |
| HSBC UK | £5 outside the EEA (not Premier) | Not published for outgoing payments | £5 plus the conversion charge in the rate |
Two cautions. First, intermediary or receiving banks may take further charges on SWIFT payments, which these figures leave out. Second, banks publishing a ceiling may apply less, so the only reliable figure is the one shown when you send.
Comparing offers on the day
Turn each offer into one number: naira received per pound paid.
- Write down the total leaving your account: £500 plus any fee.
- Write down the naira the recipient will get, as shown before you approve.
- Divide the naira by the pounds. Compare the results.
- Repeat within a few minutes for each option; rates move.
Example only. The rates are invented to show the method. Mid-market: ₦2,000 per £1, so £500 is worth ₦1,000,000.
| Offer | You pay | Naira received | Naira per £1 paid | Cost vs mid-market |
|---|---|---|---|---|
| A: £5 fee, rate ₦1,980 | £505 | ₦990,000 | ₦1,960 | £10 (₦10,000 margin, worth £5, plus the £5 fee) |
| B: no fee, rate ₦1,950 | £500 | ₦975,000 | ₦1,950 | £12.50 |
| C: £1 fee, rate ₦1,970 | £501 | ₦985,000 | ₦1,966 | £8.50 |
In this example offer C gives the most naira per pound, A is next, and B is last despite having no fee. At £50, a no-fee offer can win; at £500 the margin starts to decide. Compare fee versus rate at £50.
Bank payment or transfer app?
At £500 both are realistic. A bank SWIFT payment shows its fee up front but may lose some value in transit to intermediary or receiving bank charges, which HSBC, for example, says can apply outside the EEA. Apps that pay straight into Nigerian accounts usually show the naira amount before you pay, so what you see is what arrives. Neither is better by default; the arithmetic on the day decides.
What else moves the total at £500
- Promotional rates. First-transfer rates often apply only up to a cap, so part of £500 may convert at the normal rate. See promo rates.
- Rate holds. If a rate is held for a set time and you pay late, a different rate may apply. See rate locks.
- Payout type. Naira to a bank account, pounds to a domiciliary account and cash pickup can be priced differently.
- New payee limits. NatWest, for example, limits a new payee in its app to £750 a day without biometrics, which a £500 payment fits under.
What to check first
- The naira amount that will be credited, not only the rate.
- Any fee shown, and whether it changes with the payment method.
- For bank payments, the charge option and possible deductions in transit.
- The recipient's NUBAN and name, checked twice.
Where Pryme fits
With a Pryme account you hold pounds and naira and convert with Swap when you choose. The app shows the rate and the fee before you approve, so you see the naira you will get first.
Questions people ask
How much does it cost to send £500 to Nigeria?
It depends on the fee and the exchange margin on the day. At UK banks' published figures the total on £500 can range from about 2% to over 5%; apps price differently. Compare the naira received.
Is the fee or the exchange rate more important on £500?
Both. On £500 a £5 fee equals a 1% margin, so look at the total cost, not either part alone.
How do I compare two quotes for sending £500?
Divide the naira received by the total pounds paid, including fees. The higher figure gives your recipient more.
Why did my £500 bank transfer to Nigeria arrive short?
On SWIFT payments, intermediary or receiving banks may deduct charges. Check the charge option you chose and ask your bank for the payment trace.
Sources
- Lloyds Bank: How to make an international payment · accessed Oct 2026
- Nationwide: SWIFT and SEPA international payments · accessed Oct 2026
- NatWest: Send money abroad (published 24 Sep 2026) · accessed Oct 2026
- Barclays: International payments · accessed Oct 2026
- HSBC UK: International payments and money transfers · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.