Sending Money Home: A Guide to International Money Transfers for Students in the USA
International Money Transfers for Students in the USA
International Money Transfer

Sending Money Home: A Guide to International Money Transfers for Students in the USA

Latika Sharma

As an International student in the USA, you send money home to manage finances. Whether helping your family or paying for expenses, you must use the right transfer service. 

Today, there are many options available forInternational money transfer. You can do it from banks or a mobile app. All you need to do is understand the transfer fees and time. You must also know the exchange rates of the company or bank. 

This guide will help you choose the best way to send money home. It lists some essential points you must consider before choosing theInternational money transferoption. 

Moreover, it enlists secure, cost-effective ways to send your hard-earned money home. Explore the topInternational money transferoptions. 

Choosing TheInternational Money TransferMethod

You can conduct International transactions in many ways. Each option has different benefits. Hence, you must consider the following key points to choose the best method.

Fees

International Money Transferfees depend on various factors. Some charge a flat fee. However, some take a percentage of the amount transferred. Compare fees across options to minimize costs.

Exchange Rates

Not all services offer the same exchange rate. Banks and transfer companies often add a markup on the mid-market rate. A slight difference in rates can lead to significant losses when transferring larger sums.

Transfer Speed

You must look out for the time it takes for money to reach its destination. For instance, wire transfers may take 1-5 days. However, Xoom and Remitly are fast and offer same-dayInternational money transfers.

Payment and Delivery Methods

Decide how you plan to send the money and how the recipient will receive it. Some methods have higher fees but offer convenience or speed.

Transfer Limits

Check for minimum or maximumInternational money transferlimits. It will help you if you ever need to send large amounts. Some platforms have low daily or monthly limits.

Security

Ensure the provider is regulated and offers secure transactions, encryption, and fraud protection. Choose well-established platforms to avoid any potential risks.

Customer Support

International money transferrequires instant access to reliable customer service. Hence, you must choose a platform with 24/7 support. It is crucial for International transactions with different time zones. 

International Money TransferMethods

You can weigh the factors mentioned earlier to choose the most suitableInternational money transfermethod. We have listed a few of them to help you choose one suitable for you. 

Bank Wire Transfers

Banks provide direct wire transfers to Indian bank accounts.

  • Fees: Between $25 to $50, plus fees for receiving banks in India.
  • Exchange Rates: Marked up by 2-5%.

Online Money Transfer Services

These platforms specialize in low-costInternational money transfers with competitive exchange rates.

Wise:

  • Fees: Depends on the payment method. Usually ranging between 0.5-2% of the transfer amount.
    • Exchange Rates: Mid-market rate with no markup.

Remitly:

  • Fees: From $0 to $3.99 for economy transfers; faster transfers can cost more.
  • Exchange Rates: Marked up by 1-3%.

Xoom (by PayPal):

  • Fees: Starts at $4.99, with fees increasing based on the payment method and transfer speed.
  • Exchange Rates: Marked up by 2-4%.

Western Union and MoneyGram

They allow cash pickup and bank deposits. You can also get mobile walletInternational money transfers.

  • Fees: Ranges from $5 to $20 for small amounts. It charges higher fees for same-day transfers.
  • Exchange Rates: Marked up by 3-6%

Mobile Wallets

PayPal

  • Fees: 2.9% of the transfer amount plus a fixed fee based on the destination.
  • Exchange Rates: 2-4% markup on exchange rates.

Google Pay

  • Fees: Usually low or zero for U.S. users, depending on the partner transfer service.
  • Exchange Rates: Mid-market rates through partnered transfer services like Wise or Western Union.

International Demand Drafts

A paper draft sent via mail for depositing into an Indian bank account.

  • Fees: Around $10-20 per draft, plus mailing costs.
  • Exchange Rates: Fixed at the draft creation time, often marked up 2-4%.

Money Transfer Apps by Banks

Many U.S. banks offerInternational money transferservices via their apps.

Chase QuickPay and Citibank Global Transfers

  • Fees: Chase charges around $5-15 for International transfers; Citibank may offer free transfers for premium account holders.
  • Exchange Rates: Markup on exchange rates varies between 1-3%.

How can you do anInternational Money Transferwith Zolve?

It is extremely easy to send money using Zolve. Follow the below-mentioned steps. 

  1. Go to the Zolve app.
  2. Select Add Money.
  3. Select the source country and add the necessary details.
  4. Enter the amount ofInternational Money Transfer.
  5. Enter the KYC details.
  6. Verify through OTP.
  7. Enter your Indian account details.
  8. Review the details
  9. Choose the payment method.

And your money will be transferred instantaneously.

Conclusion

Technological advancements have eased cross-border money transactions. You can send money home easily and quickly. However, you must check for hidden charges, if any. 

With Zolve, you can make instant internationalmoney transfers. It partners with Wise to facilitate transactions. The money reflects in the recipient's account in less than a day. Moreover, Zolve does not charge transfer fees and uses Wise's most competitive exchange rate. 

FAQ

How much money can you transfer from the USA to India without paying taxes?

You have to pay tax onInternational Money Transfer. According to American laws, you can send a maximum of $14,000 without taxes. Beyond this amount, you need to pay gift tax.

How many days for a wire transfer from the USA to India?

International money transfervia wire transaction can take up to five working days. 

Can we transfer money from the USA to an Indian savings account?

You can make transaction to major Indian banks like SBI and HDFC. You can send up to $50,000 directly from your U.S. bank account. 

How much does SWIFT charge per transaction?

Multiple charges apply on SWIFT transfers. However, for each transfer, the Banks charge around 3-5% on the exchange rate.

Should I pay tax if I send money from the U.S. to India?

NRIs are not charged for International money transferto India. However, the Indian resident who receives the money will have tax implications.