Learning the ropes on how to send money from India to the USA can be a tough task, especially if you’re unfamiliar with its ins and outs.
For Indian families whose members have just arrived in the USA for school or work, or just trying to send money to a friend, knowing how to transfer money from India to the USA can go a long way in finding the most convenient method for you to send your hard-earned money. Let’s discuss them one at a time.
Use an Online Money Transfer App
This is the most common method of money transfer from India to the USA since it is convenient, fast, and efficient. You can always rely on these apps to easily send your money with low-cost fees and a more streamlined way of money transfer compared to traditional banking. Here are some of our recommendations:
Wise
Wise is popularly used for its low-cost exchange rates in India and other countries as they follow the mid-market exchange rate, the rate that Google typically displays. This makes it easier for you to keep track of the exchange rate for that day. Their mobile app also displays the different fees charged upfront without any hidden ones.
Moreover, Wise allows you to create multiple accounts in different currencies around the world, where you can convert money at fast speeds. This makes it a go-to application for international money transfers.
For money transfer limits, you can send up to 250,000 USD in a year, having a maximum of 650,000 INR (around 7,700 USD) per educational purpose of transfer or 325,000 INR (around 3,800 USD) for other purposes.
Revolut
Revolut is another app that enables you to do money transfers from India to the USA without the hassle of using traditional banks. Currently, it has over 35 million customers in 38 countries, where you can transfer up to 80 currencies, making it one of the more popular online banking apps to use if you want to send money internationally.
What sets Revolut apart is their transfers are fee-free on weekdays, Monday to Friday. And if you have Standard and Plus accounts, you can transfer up to £1,000 per month.
Western Union
Western Union is a globally-known money transfer service that offers various ways to send money including online, via app, or in person at agent branches all around the world. They are known for their extensive coverage with services available in over 200 countries.
They are the go-to money transfer service for sending money to areas with limited access to banking services because of the number of branches you can visit. If you don’t have an app, Western Union also allows money transactions to be received as either bank deposits or cash pickups to their branches.
Xoom
Xoom is another widely-used online money transfer service that allows you to do convenient India-to-USA money transfers quickly and at an affordable rate. You can use Xoom if you want to pay the bills of your family members abroad, or you can even reload prepaid SIM Cards, all by conveniently using your phones.
If you have an existing PayPal account, then you’re in luck, as you can use your PayPal account to fund your money transfers apart from the usual debit and credit cards. Transaction fees can differ from every origin country, so research first before making your transaction.
Send Using a Wire Transfer From Local Banks
If you prefer to transfer your money from your regular bank account, you can do that by using your bank’s online app or heading to your local bank to send your money. But, always keep in mind these reminders when you do your wire transfer.
You will need to know the recipient bank’s details, which include the account number and the bank’s SWIFT/BIC code. You can search for the SWIFT code on the internet or you can call their customer service.
Don’t forget to include the processing fees for your money transfer, so make sure you have extra money for the fees and not just bring the exact amount that you’ll send.
Lastly, sending money with wire transfer takes time before it reaches your recipient. Usually, it takes around 1 to 5 days before the recipient finally receives the money, so be patient and don’t panic if it takes too long.
Consider a Foreign Currency Demand Draft
A Foreign Currency Demand Draft is a bank draft created in the country of origin and made payable in the receiving country.
You can opt for a Foreign Currency Demand Draft if you want a much cheaper option than a wire transfer due to its lower service fees. Here is how you can process a Foreign Currency Demand Draft:
Approach your local bank and request a Foreign Currency Demand Draft of the country that you want to send money to, in this case, the USA.
Provide the recipient’s details and the amount of money you want to send. Remember that the equivalent amount in INR will be deducted from your bank account, including service fees.
The bank will then issue a physical draft that can be sent to the recipient, who will then deposit the money to their US bank account.
You do have to remember that this might take some time to process, as it needs to be physically sent using mail. Not only that, depositing the draft can take several days to be cleared by the receiving bank.
What Requirements Do You Need to Transfer Money?
When transferring money from India to the USA, you need to prepare some documents and give details to ensure validity and a seamless process. Here are some of the important requirements:
Proof of Identification: A valid ID like a passport or PAN card.
Proof of Address: Utility bills or bank statements are some of the most common ones.
Proof of Source of Funds: These documents verify where your money comes from. These include bank statements, payslips, or even sale of property documents.
Reason for Transfer: Specify the purpose of transfer, such as for school tuition fees, investment, or medical uses.
Recipient’s Banking Details: This includes the recipient’s bank name, bank address, account number, and the bank’s SWIFT code or ABA routing number.
Ensure the Recipient Already Has an Account
Another requirement that you need to remember is to make sure that your recipient already has a US account open where you can send your money.
In some cases, this may be challenging, especially for new international visitors who are planning to study or work in the US, considering that you have not yet established your financial standing in the country.
If the recipient hasn’t already opened an account, it is best to consult fintech companies, including Adro, that can help you establish an account the moment you arrive. They can assist you in gaining access to savings, checking, credit, and international money transfer services.
These requirements are the most common ones that apply to different types of money transfers, whether it’s wire transfers or online banking. Keep in mind that each bank may also have other requirements of its own, so I advise you to inquire about your local bank before making any transactions.
Factors to Consider When Sending Money
Before you start sending money to your friends or family in the USA, here are some important factors to consider to ensure that your process is seamless and cost-effective:
Choose the Right Service for You: There are different money transfer services available, so be sure to choose the most convenient and comfortable method for you.
Understand the Fees: Always be aware of the potential fees that are involved, which include currency exchange rates, transfer fees, and other hidden charges.
Monitor Exchange Rates: The exchange rate can change at a daily rate, this can significantly affect how much money will be transferred to the recipient, so make sure to monitor it daily.
Know the Transfer Limits: You can send as frequently as you want as long as it does not exceed the transfer limit. These methods and services have a maximum limit for money transfers from India to the USA that you should watch.
Security: Choose the best and most secure service to ensure that your money arrives as safe as it can be. Read reviews and comments regarding these services to help you decide.
Once you finally learn how to send money from India to the USA, you can conveniently transfer money to your friends or loved ones without encountering any problems. Whether you prefer online money transfers or the more conventional methods, what matters most is you get to send money the safest way possible.
This is a partnered post with Adro.