Looking for the cheapest ways to send money to India from the USA? First of all, know that sending money to India costs money. There are transactions fees to be paid, service charges, tax and other miscellaneous charges that make the whole operation expensive. Still, what are the safest, cheapest and most efficient methods to send money to India?

Consider the following aspects before selecting a money transfer option

  • Exchange rate – How does the exchange rate compare with the official rate?
  • Fee – How much are you being charged for the service?
  • Convenience – How simplified is the whole process? Is there a lot of documentation involved?
  • Speed – How soon will the money be transferred? Will you be charged an additional fee for a faster transfer?

Let’s walk you through some of the cheapest ways to send money to India from the USA.

ACH Transfer


ACH (Automated Clearing House) transfer is easily the cheapest way of sending money to India from the USA since most banks do not charge a fee. It is also a convenient one-time process that does not involve having to go to the bank, multiple times. ACH transfer involves bank to bank transfer, where you transfer money from your bank account in the US to the recipient’s bank account in India.

The only drawback with ACH transfer is that it takes over 3 working days for the recipient to receive the money.



Transferwire is an online-only money transfer platform that is touted as being one of the cheapest ways to transfer funds into an overseas account. You might want to consider this platform for sending money to India from the United States, because the exchange rates offered by Transferwire, are quite competitive. The company offers its clients the mid-market rate or the interbank rate, which is also known as REER (real effective exchange rate); the best intraday exchange that you can hope to get.

The downside of this money transfer option is that the transfer is not instant, and can take between 2-3 days. But the advantages outweigh the negatives. The fee for transferring money to India is quite low – you pay less than $9 for sending $1,000 to India. The money can be transferred using an app or through online mode.

Read more about the American Restaurants in India.

International Money Orders

international money orders

You can use the International Money Orders procedure for transferring money to India, as it is both reliable and affordable. Money orders work best for transferring small sums of cash. Money orders can be sent through banks or Western Union, for a nominal fee. The procedure is simple. The recipient receives the international money order, which they have to deposit into a bank in India, along with valid identity proof.

The identification feature ensures that the transaction is secure. The negative aspect of the international money order is that it takes time for the recipient to receive the money.

Wire Transfer

If you want to follow a conventional method of sending money to India from USA, then Wire Transfer is your go-to method. This method of money transfer has been in existence for over 50 years. Money is transferred electronically through a network of banks or via authorized transfer agencies.

The method is quick and the recipient receives the money within 24 hours. The disadvantages with the method are the high fee that institutions charge. Also, once a transfer is initiated, it cannot be stopped.

Western Union

Western Union is another popular method used in the United States for transferring money to India. It is an established name, offers convenience to the sender and the receiver and is a reliable service.

There are a few shortcomings attached to this mode of money transfer. The actual transfer of funds can take a substantial number of days, even up to a week. The transaction is carried out online, and this affects the transfer limits. And the fees and rates depend on different factors.

The good points to consider are that the Western Union has a user-friendly app and that money can be picked up from over 125,000 locations spread across India.


PayPal is a preferred mode by many who send money to India from the USA. The entire procedure is completed online. PayPal can also be accessed through a mobile phone, making it one of the smartest ways to transfer money to India. The sender initiates the payment into the recipients account through PayPal. The sender has no liability – the transaction fee charge is debited from the recipient’s account.


Alternatively, may be used for transferring money to India. is a subsidiary service of PayPal. It is an online-to-offline money transfer service.

A number of nationalized and private sector banks in India support  There is a cap on the maximum amount that can be transferred to India, hence only $10,000 can be remitted into an Indian account.

The service charge is higher than other similar services. However, you can expect a preferential rate if the transaction amount exceeds $2,000.



This mode of payment is excellent for remitting money into outsourced employees accounts in India. Hubstaff can be used to initiate payments automatically. It is an economical, quick and secure way to send money to India.

Hubstaff has an additional feature that tracks the number of hours employees spend at work. It makes it easier to calculate payments made on an hourly basis. To activate this feature remote staff, have to log into the intuitive Hubstaff timer.

Email Money Transfer          

Though this method is looked upon as an unsafe method of sending funds to India, it is actually quite reliable. It is quite secure, and there is no breach of data or personal information.

All you need to do is fill a form on the bank’s official website (the bank you intend to use for money transfer), with details of the recipient’s email and answer a security question.

The recipient will receive a communication from the bank and will be asked to respond to the security question. Once the answers are found to match, the bank begins the money transfer process.

This mode of money transfer is akin to an electronic cheque.

NRI/NRE Account

If you are an NRI, you can transfer money into your NRE account in India. You can deposit money in USD or GBP or any other foreign currency, through your overseas bank, into your NRE bank account in India.

The advantage is that this money or any earnings are not taxed. You can use the money to make investments in India. The money is easily repatriable. You pay the normal bank fee charged by the bank and enjoy tax-free benefits. 

Hope you got a pretty good list of the cheapest options to send money to India from the USA. Now send money from the US to your family or friends or family in India at a great rate.


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