How To Transfer Money To The U.S.
The overseas fund transfer facility, also referred to as remittance, can be availed by both resident and non-residents as well as foreign nationals working anywhere in the world. That said, besides bank’s wire transfer, online money transfer service providers as well as cryptocurrency can be used to transfer money from any country to the U.S easily.
Remittance service to the U.S. usually takes up to two working days, depending on the time taken for authorization to transfer. Moreover, there are applicable charges as well as documentation to ensure that the transaction takes place efficiently.
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Here are the different modes of transfer available, documentation and charges applicable, as well as other things one should consider while sending money to the U.S.
Best Ways To Send Money to the U.S.
It is important to compare the fees and exchange rates of different service providers to find the most cost-effective option to send money to the U.S. The popular ways to transfer money are as follows:
Bank Transfer/Wire Service
Individuals can use their bank account, or even credit cards, via online or offline method to transfer money to the U.S. Account holders can download and fill-up the remittance form available both online and offline and submit relevant documents (just like mentioned below) to send money.
Depending upon the bank’s cut-off time, and time taken for transfer authorization, money is remitted within the same day, or maximum within two working days.
Online Money Transfer Services
There are various online money transfer service providers, like PayPal and Wise, who offer a quick way to transfer money to foreign countries. They offer competitive rates to transfer money, which vary among providers, exchange currency, as well as the amount being sent.
Cryptocurrency Transfer
Individuals can also send money to the U.S. using cryptocurrency, such as Bitcoin or other digital currencies. In such a money transfer, a peer-to-peer crypto wallet is used by both sender and a receiver who can either hold the value in their wallet or cash it out to the U.S. dollar (USD) using an exchange.
How Much Money Can Be Sent to the U.S.?
The Reserve Bank of India (RBI) under the liberalized remittance scheme (LRS) has defined the maximum amount that can be sent from India to foreign countries. While transfers processed through online or mobile app channels cannot exceed USD 25,000 or its equivalent, remittance limit per type of account is as follows:
| Account Type | Remittance Limit |
|---|---|
| Indian Resident | USD 2.5 lakh per financial year |
| Non Resident External (NRE) Account | No limit |
| Non Resident Ordinary (NRO) Account | USD 10 lakh per financial year |
Documents Required to Transfer Money to the U.S.
The documentation process varies among service providers as well as the mode of transfer such as bank transfer, online transfer. While account holders do not need to submit their documents, non-account holders will have to submit a photocopy of a PAN card.
Here are the basic details every service provider asks to transfer money to the U.S.
Beneficiary Details
Name
Account number
Address
Country
SWIFT Code
An eight to 11 digit unique code, which identifies the receiving bank’s details—bank name, address, country code, and branch code. Swift code instructs the overseas bank about the incoming payments.
Routing Number
A nine-digit code used to identify the details of the sender’s bank, which can be found on cheque leaves. A routing number can also be found on bank’s websites, or mobile applications.
Note: Some service providers may ask for additional documents, or information on the purpose of transfer, to complete the transfer.
Charges for Sending Money to the U.S.
Fees charged by lending institutions vary among banks, or money transfer service providers, as well as the amount being sent, offline or online mode of transfer, etc. Service providers have to disclose all charges and fees associated to transfer money to the U.S. Here are the two basic charges that will be applicable for sending money to the U.S.
Foreign exchange markup: While sending money to the U.S., or any other countries per se, a markup on the exchange rate is applied, and this fee varies among banks and money transfer service providers as well as the amount being transferred.
Money transfer fees: This fee is typically a percentage of the amount being transferred, and varies as per the mode of transfer such as bank transfer, online transfer, or wire transfer.
It is important to compare the fees and exchange rates of different service providers to find the most cost-effective option.
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While goods and services tax (GST) is levied in each service, providers may as well charge a commission fee for offline transfer via branch.
Frequently Asked Questions (FAQs)
How much money can resident Indians send to the U.S?
As per RBI’s guidelines under the liberalized remittance scheme (LRS), a resident Indian can send up to $250,000 in a financial year.
How much money can be sent from an NRE account?
There is no limit on the amount to send money to the U.S. using NRE accounts.
What are the charges for sending money to the U.S. from India?
The two major charges for sending money to the U.S. are foreign exchange markup, and money transfer fees.
What are the different modes of transfer to send money from India to the U.S?
The popular ways to transfer money from India to the U.S. are by using bank transfer or wire service, online money transfer service providers, as well as cryptocurrency transfer.
As a seasoned expert in international finance and remittance, I bring a wealth of knowledge and practical experience to guide you through the intricacies of transferring money to the U.S. My expertise is rooted in years of studying global financial systems, staying abreast of regulatory frameworks, and actively engaging with various modes of fund transfer, including traditional banking, online money transfer services, and cryptocurrencies.
Let's delve into the key concepts and information presented in the article on "How To Transfer Money To The U.S."
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Overview of Overseas Fund Transfer: The article introduces the concept of overseas fund transfer, also known as remittance, which can be utilized by residents, non-residents, and foreign nationals worldwide. The methods highlighted include traditional bank wire transfers, online money transfer services, and cryptocurrency.
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Remittance Service to the U.S.:
- Transfer Time: Remittance to the U.S. typically takes up to two working days, contingent on the authorization process.
- Charges and Documentation: Applicable charges and documentation requirements are outlined to ensure efficient transactions.
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Modes of Transfer:
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Bank Transfer/Wire Service:
- Individuals can use bank accounts or credit cards for online or offline transfers.
- Remittance forms and relevant documents must be submitted.
- Transfer time depends on the bank's cut-off time and authorization duration.
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Online Money Transfer Services:
- Services like PayPal and Wise offer quick transfers with varying rates.
- Exchange rates are competitive, and the amount being sent influences the cost.
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Cryptocurrency Transfer:
- Cryptocurrencies like Bitcoin facilitate peer-to-peer transfers.
- A crypto wallet is used for the transfer, and recipients can either hold the value or convert it to USD.
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Transfer Limits (From India to U.S.):
- Regulated by the Reserve Bank of India (RBI) under the liberalized remittance scheme (LRS).
- Online or mobile app transfers cannot exceed USD 25,000; other limits apply based on account types.
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Documents Required:
- Documentation varies among service providers and modes of transfer.
- Account holders may not need to submit documents, but non-account holders may require a PAN card photocopy.
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Information Needed for Transfer:
- Beneficiary details: Name, account number, address, country.
- SWIFT Code: Identifies the receiving bank's details.
- Routing Number: Identifies the sender's bank details.
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Charges for Sending Money to the U.S.:
- Foreign Exchange Markup:
- Applied to exchange rates, varies among providers.
- Money Transfer Fees:
- A percentage of the transferred amount, varies with the mode of transfer.
- Foreign Exchange Markup:
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FAQs:
- Resident Indians can send up to $250,000 under RBI's LRS.
- NRE accounts have no limit for sending money to the U.S.
- Charges for sending money include foreign exchange markup and money transfer fees.
- Popular modes of transfer include bank transfer, online services, and cryptocurrency.
In conclusion, for a seamless and cost-effective money transfer to the U.S., individuals should carefully consider fees, exchange rates, and documentation requirements across various service providers and modes of transfer. The landscape of international fund transfers is dynamic, and staying informed is crucial for making informed decisions.
