Last Updated on October, 2024
People send money to India for different reasons. But the question is, “Which is the best money transfer service for sending money to India?”
When you’re looking for a money transfer service, you’ll surely consider the transfer fees. That’s why I have tried my best to give you the seven best methods to send money online. I’ve discussed each online money transfer service’s features, pros, and cons.
It doesn’t end there. I’ve also covered some more important parts, such as the reason why people choose to wire transfer money to India, tips for safe and cheap international online money transfers, methods for transferring money to India, and more.
Keep reading to benefit from this piece and to send money to India with confidence!
Contents
- 7 Best Ways to Transfer Money to India
- Why People Transfer Money to India?
- Why Transferring Money to India From the US isn’t the Cheapest Through Banks?
- Understanding International Money Transfer Costs
- Tips for Safe and Cheap International Money Transfers
- Methods for Transferring Money to India
- Things to Remember When Transferring Money to India
- Conclusion
- FAQs
- Which App is Best to Send Money to India?
- What’s a Quick Way to Send Money to India?
- What are the Ways to Send Money to India Without Incurring Fees?
- What are the Alternatives for Sending Money to India if I Don’t Have a Bank Account?
- Are Online Money Transfer Services Secure for Sending Money to India?
- Was this article helpful?
7 Best Ways to Transfer Money to India
1. Wise
Wise, previously known as TransferWise, is a service that helps you send money overseas in a cheaper way.
It works like this: Let’s say you want to send money from the US to India. Other apps will tell you the exchange rate, like $1 equals ₹ $74.46 in India. But Wise does more. It gives you the real exchange rate, which shows not just the numbers but also the true value of money.
This can be really useful when you’re deciding how much to pay someone in India, like a team member.
Want to dive deeper into Wise? Check out this article.
Pros
Cons
2. ACH Transfers
An ACH transfer (Automated Clearing Transfer) offers a convenient option for businesses operating in the United States. Many of the P2P payment method services listed here facilitate transactions by initiating an ACH money transfer on your behalf.
If you’re concerned about money transfer fees, it’s advisable to go for an ACH money transfer. These transfers come in two forms: debit and credit. Debit transfers are typically free, while credit transfers may incur a fee of approximately $3 per transfer.
As stated by The Balance, ACH payments are suitable for small, recurring transactions like direct bank deposits of salaries or monthly bills. However, it’s important to note that it might take several business days for the recipient to receive the funds.
Pros
Cons
3. Remitly
Remitly is one of the rising fintech companies. Its money transfer service is stable, fast, and secure, and it boasts very low transfer fees. Particularly noteworthy is its moral commitment.
GUESS WHAT? Amid the COVID-19 pandemic, Remitly has pledged 5 million rupees to aid organizations in India. This support includes essentials like food, oxygen, and protective gear.
Want to dive deeper into Remitly? Check out this article.
Pros
Tier 1: $2,999 per day
Tier 2: $6,000 per day
Tier 3: $10,000 per day
Cons
4. MoneyGram
MoneyGram is a major player in global money transfers, facilitating quick transfers to India and beyond.
With a vast network of 350,000+ agents in over 200 countries, it offers secure transactions but has limitations like a $10,000 monthly cap and varying document requirements. Exchange rates may also be unfavorable.
Want to dive deeper into MoneyGram? Check out this article.
Pros
Cons
5. PayPal
PayPal is a big online payment company. It helps you move money between state bank accounts without using your credit card or bank directly.
It has a special search tool to ensure that you send money to the right person. Each person receives a special link and QR code. You don’t pay any extra fees. It’s FREE for both people sending and receiving money.
Pros
Cons
6. Western Union
Western Union has been around for a long time, helping people send money easily. It’s popular because it’s dependable and simple to use.
It’s in almost every country, making it easy to send money internationally. You can even send money to big banks in India like the State Bank of India, ICICI Bank, and HDFC.
However, it’s important to know that it might take a while for the money to reach its destination, sometimes up to a week. Western Union is great for bigger transactions, up to $50,000 per day.
But, if you’re sending a small amount, it might not be the best choice because the fees can be high.
Want to dive deeper into Western Union? Check out this article.
Pros
Cons
7. Xoom
Xoom, a service powered by PayPal, has been recognized globally for its efficient money transfer service since 2001, offering quick, affordable, and convenient transactions.
The standout feature of Xoom is its online-to-offline money transfer service. This service allows recipients to collect funds at designated locations in India immediately after the online transaction without requiring an Indian bank account or internet access.
Want to dive deeper into Xoom? Check out this article.
Pros
Cons
Why People Transfer Money to India?
People send money abroad for different reasons. Some send money to help their loved ones, some invest in the economy of another country, and others send money for travel or education.
If you’re sending money to India, there are several common reasons why:
When you’re sending money to India, it’s crucial to pick a trustworthy provider. With so many options available, it can be hard to choose. That’s why it’s smart to research and compare different providers to find the best one for your needs.
Why Transferring Money to India From the US isn’t the Cheapest Through Banks?
Sending money to India through a bank has long been the usual method. But banks are not always the best choice. They charge high fees, offer bad exchange rates, and often hide extra charges that make transfers more expensive.
Even a simple international money transfer with a bank involves a lot of paperwork, long waits, and complicated procedures.
Your best option for sending money cheaply is using online money transfer services. These services are much better. They offer better rates and overall better service.
All you need is a website or a mobile app to send money. You can do it anytime if you want because these platforms are available 24/7.
Understanding International Money Transfer Costs
Do you know? Sending money internationally can cost you different amounts of money. The main factors that affect how much it costs are:
Exchange Rates:
Commission:
Correspondent Fees:
Foreign Currency Conversion Tax:
Service Tax:
Tips for Safe and Cheap International Money Transfers
Before you pick which way is best for sending money to India from the US, you need to understand that the least expensive method varies based on what you need, like how much money you’re sending, how quickly you need it to arrive, how you’re paying, and how you want it delivered.
Remember, what’s cheapest might not be what’s best for you!
So, here are some tips to help you choose the right way:
Methods for Transferring Money to India
Sending money from one place to another can be done through various methods. Here are some ways:
Remittance Companies
These specialized companies send money internationally. They often offer good rates and lower fees compared to banks. Some popular ones in India are Wise, Remitly, and XE.
They usually do money transfers quickly, directly into the recipient’s Indian bank account.
Bank Transfers
This is when you send money from your Indian bank account to another bank account. It’s a common and safe way to transfer money, but it can be expensive and take a few days to process.
Digital Wallets
These are apps like Amazon Pay and Google Pay.
They’re becoming more popular for sending money because they’re fast, secure, and convenient. However, there might be limits on how much you can send, and there could be fees.
Cryptocurrency
This is a digital currency like Bitcoin. It’s decentralized, meaning any government or bank does not control it. Cryptocurrency transfers are fast and usually have low fees. However, the value of cryptocurrencies can change a lot, and they’re not accepted everywhere in India.
Things to Remember When Transferring Money to India
Yes, what you’re thinking is correct. When you’re sending money to India, there are a few important things to think about to make sure everything goes smoothly and doesn’t cost too much.
First, check how much it costs to send USD. Different companies charge different fees, so it’s smart to compare them to find the cheapest one.
Next, look at the exchange rate. This is how much Indian money you’ll get for your money. Some places might give you a better rate than others, so shop around. If you need money to get there fast, make sure the service you choose can do that. Some can get it there the same day or the next, but it might cost more.
It’s also important that your information stays safe. So, pick a service that keeps your personal and financial information secure.
Think about how you want to pay. Not all companies accept the same methods, so check if they accept your preferred method, such as a bank transfer or credit card.
Decide how you want the person in India to receive money. Options include direct deposit, digital wallets, or cash pickup.
Lastly, it’s good to have good customer service in case something goes wrong. Look for a company with helpful customer support you can reach by phone, email, or chat.
TRUST ME. Considering these things will help make sure your money gets to India quickly, safely, and without costing too much.
Relevant guides:
Conclusion
This is it: online money transfer from the USA to India isn’t a big deal if you know the right way. ALWAYS keep an eye on transfer fees, exchange rates, transfer speed, safety and security, and convenience.
Plus, double-check the details before sending money to India to ensure a successful transaction!
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