Best Ways to Send Money to India From Anywhere in the World

Last Updated on December, 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!

7 Best Ways to Transfer Money to India

1. Wise

wise logo on a blue background

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

It’s cheap because it uses mid-market exchange rates. It charges a small conversion fee, about $13.01 or 0.65%.
It’s convenient to use. You can do it online or through the app. 
It’s available in a lot of countries – 230, to be exact. 

Cons

Transfers from Canada to India can take 2 to 3 business days.

2. ACH Transfers

an image of a ach transfer

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

Free at most banks or money transfer services, with nominal wire transfer fees at others
Convenient

Cons

It is not ideal for urgent transactions, as it may take 3+ days for processing.

3. Remitly

remitly logo on a blue background

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

Transfers under $1000 incur only $3.99 fees, and there are no fees for transfers above $1000. 
Remitly offers a fixed exchange rate.
Basic transfers take up to 3 business days without any fees, while express transfers arrive in four hours or less, albeit with added costs.
Users can transfer up to:

Tier 1: $2,999 per day

Tier 2: $6,000 per day

Tier 3: $10,000 per day 

Cons

Remitly limits transfers to a maximum of $30,000.
There’s a concealed currency conversion cost of $13.

4. MoneyGram

MoneyGram logo on a blue background

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

It has a huge network of agents. There are over 350,000 agents in more than 200 countries.
It’s really fast. Most transfers are done in about 10 minutes.
MoneyGram keeps your money with fraud protection. 
If you’re sending money to an Indian bank account, the fees are very low, or sometimes there are no hidden fees at all. 
MoneyGram has been around for over 80 years, so it’s trusted.

Cons

The exchange rates they offer aren’t great. Sometimes, they charge up to 5.05% more.
The documents you need to transfer money can be different depending on which country you’re sending it from.

5. PayPal

paypal logo on a blue background

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

Easy to use on your phone
Safe and secure
No fees for sending money to family and friends
Helps stop fraud and payment mistakes

Cons

Charges a 1% fee for instant transfers (free transfers take 1 to 3 days)
Charges an amount of 2.9% plus $0.30 for business use.

6. Western Union

western union logo on a blue background

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

The app is easy to use.
There are lots of cash pickup locations in India where you can pick up your money. 

Cons

It can be expensive, especially for small amounts. 
It might take a while for the money to arrive, especially if you’re not using a bank card.
The fees and rates can change depending on where you’re sending the money and how you’re sending it.

7. Xoom

xoom logo on a blue background

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

A flat fee of $4.99 for any amount sent. 
Money typically arrives within minutes for most transactions. 
Round-the-clock customer support is available in multiple languages. 

Cons

Basic accounts have a daily sending limit of $2,999.
Transactions are rounded up to the nearest rupee, resulting in slightly higher charges. 
Sending limits (Indian rupees) are imposed on a daily, monthly, and biannual basis, depending on the Indian bank account level. 
Credit/debit card transactions may incur fees of up to $90 for certain countries. 

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:

  • Many people who live and work abroad send money back home to help their loved ones. They might pay for their kids’ schooling, cover medical bills, or help start a business.
  • India is a popular destination for tourists. When they travel there, they often need to send money to pay for hotels, transportation, and food.
  • India’s economy is growing fast, so some people want to invest there. They might buy stocks, real estate, or start businesses. 
  • India has many famous Universities, so students from all over the world go there to study. They need to send money to pay for school fees, housing, and living costs.
  • India is also important for international trade, so many businesses operate there. If you have a business in India, you might need to send money for things like salaries, rent, or supplies.

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?

The best way to transfer money from the US to India is through online money transfer services.

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:

  • When you send money in a different currency, the exchange rate is crucial. 
  • Your money gets converted from USD to INR by the financial institution or service provider handling the transaction. 
  • They make a profit by offering a conversion rate higher than the real exchange rate.
  • You should compare the quoted rate with real exchange rates using currency conversion tools.
  • The exchange rate decides how much money your recipient gets in the end. 
  • Keep in mind that exchange rates can change due to market conditions.

Commission:

  • The service provider charges this fee, which varies between providers. 

Correspondent Fees:

  • Some services use third-party banks for international transfers.
  • These banks deduct a fee from the amount your recipient receives, but this fee isn’t usually shown upfront. 

Foreign Currency Conversion Tax:

  • When you convert one currency to another, this tax applies.
  • It’s usually consistent and set by the government. 

Service Tax:

  • This tax is applied to the commission fee, not the whole transaction. 
  • The percentage is based on the commission fees set by the service provider, not the total transaction amount.

Tips for Safe and Cheap International Money Transfers

image of coins on a world map

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:

  • Think about how dependable the option you’re considering is. 
  • Choose reputable providers that are licensed, regulated, and have a proven track record of strong security measures.
  • Look at things like the exchange rate, any hidden fees, what other customers say about the service, and how long it takes for the money to get there.
  • Also, think how easy it is to use the service.
  • Consider money transfer speed and ease of use, including online and mobile options. 
  • Choose a provider with responsive customer support.

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

image of a cryptocurrency logo

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!

Understood? (If you’re highly satisfied with this piece, leave your thoughts in the comment section)

FAQs

Wise and Remitly are among the best apps for sending money to India due to their low fees and favorable exchange rates.

Quickest options to send money to India: Xoom, MoneyGram, and PayPal. They typically process payments within a few hours, making them faster than other methods.

Fee-free ways to send money to India: Transfast’s Value+ service and Xoom via bank transfer.

Alternatives for sending money to India without a bank account: PayPal and Xoom. Recipients can store money directly in their accounts.

Online money transfers to India are generally safe. Ensure you choose a trustworthy, licensed, and regulated company for secure transactions.

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Allen Morning
I'm Allen Morning, with a background spanning over 15 years in international finance and education from Harvard and Stanford. I founded Currenciap with a vision to demystify and streamline global financial transactions. My journey in finance has fueled my commitment to creating a platform that is both user-friendly and efficient, making international finance accessible to everyone. You can find more about me here.

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