Sending Money from India to USA? Here’s What Every BookMyForex Customer Should Know!
Understanding Wire Transfers
A wire transfer is an electronic way to send money directly from one bank account to another, either domestically or internationally. An international wire transfer is one of the fastest ways to send money from India to the USA, whether to pay for college tuition, support family, or invest there. When you initiate a wire transfer, your bank sends the funds to the recipient's bank via a secure network like SWIFT. You'll need to provide details like the recipient’s name, account number, and the bank’s SWIFT code or routing code.
While banks in India also process wire transfers to the USA, they charge hefty fees, typically ranging from ₹1500 to ₹2000, along with huge markups on the exchange rate. So, what’s a smarter and more cost-effective option? The answer lies in platforms like BookMyForex, which offer zero transfer fees and a lowest-rate guarantee on money transfers to the USA. We transfer funds through reliable partner banks, maintaining the same level of trust and security as traditional banks while providing interbank-linked lowest rates.
Why Indians Transfer Money to the USA
Under the Liberalized Remittance Scheme (LRS), Indians can remit up to $2,50,000 in a financial year for various purposes. Here are some of the most common reasons why Indians send money to the USA:
1. Education: Many Indian students study in the USA, which is home to some of the world’s most prestigious universities, such as Harvard, Stanford, MIT, and more. Parents often send money to their children in the USA for tuition fees, accommodation, and living expenses.
2. Family Maintenance: Family support is another common reason for money transfers, where Indians send funds to their family members living in the USA. This could include parents supporting their children working in the USA, or siblings supporting each other.
3. Medical Treatment: The USA is known for its advanced medical technology and specialized treatments. Many Indians travel to the USA for surgeries and treatments that are unavailable in India. Sending money is crucial for covering hospital bills, doctor consultations, and post-treatment care.
4. Investment in Foreign Stocks: The US stock market is a major attraction for Indian investors, offering opportunities to invest in globally renowned companies like Apple, Tesla, Amazon, and Google. Wire transfers are commonly used to fund these investments.
5. Emigration and Foreign Employment: The USA remains a popular destination for Indians seeking employment or permanent residency. Wire transfers are required to fund the initial settlement costs, such as housing deposits, transportation, setting up utilities, or paying visa-related expenses.
Documents Required for International Money Transfers to USA
The documents required for international money transfers through BookMyForex depend on the purpose of the transfer. For example:
—For Education: You’ll need to upload the I-20 form or an admission letter from the university.
—For Family Support: Proof of your relationship with the beneficiary is required.
However, two documents are mandatory for all transfers, irrespective of the purpose:
—PAN Card
—Remitter Photo Cum Address Proof
For a detailed list of documents based on the purpose of your transfer, visit here.
Factors to Consider When Transferring Money to USA
1. Exchange Rates: When transferring money to the USA, one of the most critical factors to consider is the exchange rate, which determines how much Indian Rupees (INR) will convert into US Dollars (USD). Even a small difference can significantly impact the amount received, hence, you must always compare rates from different providers. Banks and other money transfer platforms often add up to 2.5% markup to the base rate whereas BookMyForex offer lowest rate guarantee on top interbank rates. For example, if you’re transferring $10,000 to USA and one provider offers ₹87 per USD while BookMyForex offers ₹85, the beneficiary would receive ₹20,000 more with the better rate.
2. Transfer Fees: Another important consideration is the transfer fees, which are charges levied by banks or money transfer services for processing the transaction. Indian banks typically charge flat fees ranging from ₹1500 to ₹2000 per transfer. Some money transfer platforms also charge a percentage of the transfer amount. For example, a 2% fee on a ₹5 lakh transfer could cost you ₹10,000. In contrast, BookMyForex offer zero transfer fees on money transfer to USA – simply use the promo code "ZEROBANKFEE."
3. Intermediary and Recipient Bank Charges: When you send money to the USA, your transfer may pass through one or more intermediary banks before reaching the recipient’s account. There are fees deducted by banks involved in routing your transfer. Charges can range from $15 to $50 for the intermediary banks. The recipient’s bank may also charge a fee to process the incoming funds. Use platforms that provide a clear breakdown of costs upfront to avoid unpleasant surprises. BookMyForex ensures transparency by letting you calculate the exact amount your recipient will receive.
4. Transfer Speed: The time it takes for your money to reach the recipient can vary depending on the provider and type of service. Wire Transfers via banks typically take 3-5 business days whereas BookMyForex processes the transfers much faster, with transfers to USA completed within 12 to 48 hours. For education-related transfers, BookMyForex even offers same-day transfers.
5. Security and Compliance: When transferring money overseas, security and regulatory compliance are non-negotiable. Ensure the platform you use employs advanced encryption and secure payment gateways to protect your financial and personal information. By opting for a reliable and secure platform like BookMyForex, you can feel confident that your transactions are safeguarded. BookMyForex uses secure payment gateways and applies document watermarking to ensure the safety of your sensitive information. The platform strictly follows all guidelines set by the Reserve Bank of India (RBI) and complies fully with the Foreign Exchange Management Act (FEMA).
6. Tax Collected at Source (TCS): No matter the platform you use, Tax Collected at Source (TCS) applies to your foreign remittances. For education and medical expenses, a 5% TCS is applicable, while for other remittances exceeding INR 7 lakh in a financial year, 20% TCS applies. Transfers below INR 7 lakh in a financial year are exempt from TCS. You can claim the TCS amount as a tax credit when filing your income tax returns.
