If you want to send money to India from the USA, you’d definitely want to get maximum value for your hard-earned money. But from all the different money transfer options available, which is the most cost-efficient? Read this post to find out.
Most Indians working in the USA, regularly send funds to their family back home. Thanks to the rising number of people now moving to foreign lands, the money transfer industry is growing consistently. But while money transfer services are now easily accessible, the wide range of transfer options often make the selection difficult.
One of the most important considerations while selecting a money transfer service is its cost-efficiency. But which is the most cost-effective method for the USA to India transfers? Let us have a look at some of the most popular options-
- Money Transfer Agents
Until a few years ago, the only reliable option for Indians in the USA was to use a money transfer agent for transferring funds to India. However, their exchange rates are known to be low, and they charge a certain percentage of the amount being sent as a transfer fee. Also, one of the biggest drawbacks with them is the money sent to their branch office in India.
So, your recipient would be required to visit the closest branch of the transfer agent in order to collect the funds. For USA to India transfers, the duration can be up to 3-5 working days.
- Online Money Transfer Services
There are now also several online money transfer services available for international transfers. While these services are known to be faster than using an offline money transfer agent, many of them are generally expensive. Some online services do not require the sender to pay any fee on the transfers. However, the recipient will have to pay the transfer fee, which could be as high as 5%.
Most such services deposit your funds directly into the bank account of your recipient. As compared to offline transfer agents, online services are known to offer better exchange rates. But note that many such online services are not reliable. So, select a reputable company if you want to use online services.
- ACH Transfer
ACH (Automated Clearing House) is also an online bank-to-bank money transfer system. It is known as one of the safest money transfer methods as it is generally governed by regulatory authorities. For instance, in the USA, NACHA (National Automated Clearing House Association) governs ACH transactions.
Several Indian banks have branches in the USA and support ACH transfers. The exchange rates are competitive, and the transfer fee is highly affordable too. However, it can take up to 4 days for your funds to reach your recipient in India.
- Wire Transfer
With wire transfers, you are required to first initiate the transaction with a USA to India remittance service provider. Once the transaction is initiated, you will receive a receipt for the same. You can deposit this receipt at the local bank where you have an account. This local bank will then complete the transaction.
There is generally a fixed money transfer fee, and service tax is applicable at the rate of 15%. If you select a reputed remittance service provider, you can get exchange rates that are better than offline/online transfer agents and services.
- Bank Online Transfers
There are now Indian banks that offer highly cost-effective USA to India online money transfer services. Apart from being highly affordable, online transfer service offered by the banks is also known to be safe, convenient, and quick. Some private banks offer transparent and competitive transfer rates with low money transfer fee.
Also, some banks do not charge any transfer fee for transfers above a certain limit like $1,000. The money directly reaches the bank account of your recipient within 1-2 working days.
What Should You Select?
As you can see, online money transfer services offered by banks are generally the most cost-effective for the USA to India transfers. You can look for a reputed Indian bank having its presence in foreign countries and offering a wide range of services for NRIs to make the best use of this facility.
No matter what service you select, always go for a reputed service provider and check the exchange rate and transfer fee before initiating any transaction.
Disclaimer: “The contents of this article is meant merely for informational purpose. Any reliance placed on such information is therefore strictly at one’s own risk.”