This is one situation every Indian faces one time or another after coming to the USA. There could be many reasons for you to send money to India: ailing parents, weddings, education or just a monthly remittance.
Many new services and companies are now offering Money transfer services to India and across the globe. Wire transfer or checks are no longer the only options available, there are various other ways to do so. The best way to remit is to compare money transfer services before sending money to India. One such site - www.CompareRemit.com allows you to compare and remit money through various services and companies in order to get the best exchange rates for sending money to India.
But before you choose the money transfer service, it is important to understand the basic concept and its mode of operation. After all, its your hard earned money and a little understanding on this topic can surely make you save a significant amount of money while getting you peace of mind.
There are several ways to send money when the need arises. Some are suited to certain needs while others to a different service of requirements. These could range from the total amount of money being remitted to the mode, which in turn will determine how much of an expense you will incur when remitting such an amount. There are traditional methods of remitting money in the form of demand drafts, checks etc. The more contemporary methods include comparing different financial institutions to see who have the best rates available.
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Factors to look for
- Credibility: The name of the company and its credibility.
- Fee: Assess the charges per transaction. Find if there are any additional charges if mode of transfer is a Credit Card? What are the requirements if the beneficiary is other than yourself or if the mode of delivery is a Draft instead?
- Conversion Rate : This is a critical aspect to evaluate since one may end up paying a low fee but eventually end up paying more on conversion/exchange rate.
- Customer Support : Ensure there is a reliable customer service which can be reached at all times. Know if the customer support can help track down your money sent and figure reasons for delay or non-delivery or a wrong transaction
- US toll free number: Identify a toll free number for ease of contact.
- Time to deliver : Analyze the time it takes to deliver?
- Ease of use: Convenience is important - How easy is it to use? Is the transaction secure, etc should be figured out first
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Frequently Asked Questions: (FAQ)
Some of the commonly asked questions revolve around frequency of remittances. Whether it be sending money on a regular basis, perhaps in installments for a newly purchased property or a large amount for an emergency back home, there can be several questions before you have to remit the amount. If you are sending money to your personal account, you are advised to use a NRE account preferably one that also offers money transfer services. Most banks like ICICI and SBI do.
Some foreign banks who have presence in both countries in USA as well as your home country may lure people to have a NRE account with them and then transfer money online from their regular checking account to the NRE account. This could lead to added expenses. For example, Citibank reports your interest earned on the NRE account to IRS and expects you to report in your US tax. So you are better advised to have your NRE account with a nationalized bank instead of a US bank.
Some of the traditional methods like personal checks and post dated checks are the go-to choices if sending money on a regular basis. This may take some time for the beneficiary to deposit and get it cleared but you there is no need to use any money transfer service and may save on Fee.
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