Sending Money from the USA: Why Having an NRI Account Is Better
People staying in the United States (US) often send money to India. Most people living in the US send money either to their parents or friends and family. It is especially significant for them to have a mode of transaction that is safe and convenient. Let us learn how to transfer money from the USA to India.
How to transfer money from USA to India?
To transfer money from USA to India online, you can avail of the telephonic or wire transfer facility. The Indian bank will have correspondent banks through which such a transfer takes place. If your bank is part of the SWIFT network, the money can also be transferred through SWIFT.
How to send money from USA to India without using the wire method?
You can send cheques or demand drafts to a branch of your bank in India along with a letter containing instructions. This letter will carry details of the relevant account. Your money will be deposited in that account number. You can also remit payment to an Indian bank account through third-party transfer options. In that case, money will be sent through providers of online money transfer.
We now somewhat know how to transfer money from USA to India.Types of accounts that can be opened by NRI customers.
- NRE account (current and savings account )
- NRO account (current and savings account )
You can also open a Fixed deposit account with HDFC Bank.
An NRE account can only be opened those who are classified as a non resident individual of Indian nationality or of Indian Origin. The HDFC Bank offers the provision of opening NRE accounts. There are several advantages of sending money from USA to India using an NRE account.
There are no limits on the amount of money you send. HDFC Bank does not levy any separate charges for inward remittance apart from the applicable taxes. To know about the charges involved for various types of funds transfer please click here.
- The money sent is converted to INR at the prevailing exchange rate.
- The money in your NRE account will earn savings bank interest as per the prevailing rate of interest.
- You can appoint a mandate holder. The process is carried out through a letter of authority. A Mandate holder is authorised to carry out certain set of transactions on behalf of the account holder. The power of attorney holder can also avail domestic debit card / ATM card.
- . This card can be used to access your NRE savings account. This is a handy option if you are sending money to your parents back in India; they can withdraw money as and when required.
- In India, Interest earned on NRE Savings bank account and NRE fixed deposit are exempt from tax. So, you are not taxed on the money you send to India. There is also no gift or wealth tax.
- You can transfer the money back to your foreign account. There are no restrictions. The interest earned can also be fully repatriated. There are no taxes on that either. The feature tells you how to send money to USA from India.
Money can be sent to your NRE account from the United States through a wire transfer. You can use the bank’s online money transfer service. You can also use a third-party money transfer service. It is best to research the best exchange rate. Always look at the charges before making a decision.
Click here to know more on ways in which funds can be sent from USA to your NRE account.
Click here to open an HDFC Bank NRI Account.
NRI Account Opening 101: List of Documents Required for Opening Your NRI Account.Click here to read more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.