Whether you are living in India and have a business in the US or you stay in the US and want to send money to your family, friends, or relatives living in India. This blog will explain to you in detail the best way to transfer money from the US to India along with the things to consider so that your money reaches India safely and with no additional charges.
Quick Summary
If you have a business in US and looking to send money from US to India, we recommend you create a US bank account from banks like Brex or Mercury. The best ones for swift trasnfers are Remitly, XE Money transfers and Wise. If you are looking to send money for personal uses, we recommend XE Money Transfers, Remitly, Wise or with Agents.
Different Methods For Sending Money 💸
There are 3 ways to transfer money from the US to India. Each of these methods further has different options. I will explain all the options in detail so that you can easily understand and make an informed decision.
SWIFT/Wire Transfer
A SWIFT/wire transfer is a form of electronic payment that sends money directly from one bank account to another bank. With a wire transfer, the bank acts as a middleman for the payment.
The sender does not need to have their own bank account, in wire transfer, they have to send the money to a particular bank. This bank then sends the money to the recipient’s bank and finally to the recipient.
SWIFT is a part of the global financial system that allows banks to send money to each other. While sending money from the US to India make sure to get your recipient’s bank account information and their bank’s SWIFT code.
This is a good option if you are considering transferring a large sum of money.
Here is how SWIFT transfers work with Banks and Western Union.
Banks
The easiest and fastest way to SWIFT transfer money from banks is through online banking. Below are the steps, it may slightly vary from bank to bank, but it will give you a general idea.
- Sign in to your bank’s online or net banking system
- Click on the tab for ‘Transfer’ or ‘Funds Transfer’
- Select international transfers.
- If this is the first time with your recipient, add their details as a beneficiary (It may take 30 minutes to confirm)
- Once the beneficiary is confirmed, head back to international transfers.
- Input the amount to be sent.
- Input the reason for sending.
- Confirm your transaction.
If you don’t want to transfer online, you can visit the local branch and carry out the process.
Western Union
Transferring through Western Union is easier and cheaper as compared to traditional banks. It is ideal for transferring large sums of money.
- Western Union gives you 3 options to transfer money to India.
They have 11,10,001 Indian agent locations, your recipient can pick up cash close to home.
Register your online profile to transfer money.
This allows you to track your money transfer to India.
- From the western union, you can send money to nearly 200 banks in India.
- You will need to feed in the following details to transfer money: the recipient’s account number, Indian Financial System Code (IFSC), and the purpose of transferring the money.
Mobile Transfer
This is the modern way of making international payments. This is perhaps the fastest and simplest method to transfer money. Here you can access money transfers straight from an app on your mobile at any time.
PayPal
It is the most popular and most secure app for online money transfers. It has millions of users and businesses on its platforms. If you want to transfer money through PayPal, the recipient should also have a PayPal account. It can be a quick and cheap way to transfer money because here you don’t have to pay foreign transaction fees. It is a good option when you want to transfer a large sum of money.
Steps to transfer money from the US to India using PayPal
- Log in to your PayPal account at Pay Pal.com
- Go to send and request
- Enter the name or Email address of the recipient
- Select the amount of money you would like to send to the recipient and press continue. Here it will show you the conversion rate of the exchange.
- Confirm the payment type and choose how to pay
- Review everything and click send payment now.
Credit Card
This is not the best option, because they are expensive. There are 2 ways you can send money through a credit card. You can use your regular bank account or choose a transfer provider.
It is an expensive way to transfer cash because it involves additional fees like cash advance fees, transfer fees, and exchange rate markup. It can however be the fastest way of transfer in case of an emergency.
📤 The Best Way To Transfer Money From US Bussiness To India
If you have a small business or start-up in the US then, I would suggest you open a US bank account that specifically caters to start-ups and small business owners. These banks usually have an easy-to-use interface and Cheap or free wire transfers.
Some of the best banks are:
1. Brex
2. Mercury
From these banks, you can directly SWIFT transfer your money, this way you will save money on the fees charged by third-party users, but do check the exchange rates that they are offering.
I would suggest you compare these banks with the transfer charges and exchange rates of other swift transfers and choose the ones that provide good exchange rates and no hidden charges. Some of the best options for SWIFT transfers are
In case you want to transfer large sums of money, you could also consider using Western Union or PayPal
*I have explained about each of these banks in detail below
🏠 The Best Way To Transfer Money For Personal Reasons
If you want to send money to your family, or friends, or for any other personal reasons, then I would suggest you opt for SWIFT transfers like
They have cheap or free transfer fees. However, do check the exchange rates they are offering.
For transferring large sums of money, you can consider Western Union and Paypal.
*I have explained about each of these banks in detail below
🇺🇸 ➡️ 🇮🇳 How to Send Money for Free from the US to India
There are three options that allow you to transfer money from the US to India for free. They are:
1. XE Money Transfers
If you are not under time pressure, then this is a go