Glossary entry

Correspondent bank

A correspondent bank is a bank that provides services to another bank in a different country, such as holding accounts and helping settle payments across borders. A bank without its own presence abroad relies on correspondents to reach foreign accounts. Several of them can sit in the chain for one transfer, and each may add time or a charge. This is one reason delivery times are estimates rather than promises and why the final credited amount can differ from the quote. See also: intermediary bank, SWIFT, remittance, and the guide Sending Money from the UK to India.