Why Instarem is the best option for sending money safely to India from the USA

22 Jun 2023
12 mins read
Written by Team Instarem

India is home to a large community of individuals who live and work in the USA. As a result, online money transfers from the USA to India have become a highly competitive market with a plethora of services and providers.  

It’s crucial to find a platform that’s safe, reliable, and can ensure fast, secure, and affordable transfers.

Among the many options available for sending money from the USA to India, Instarem has emerged as a top choice for its secure and reliable transfer services.

In this article, we’ll explore the reasons why Instarem is the best option for sending money safely and quickly to India from the USA.

Importance of sending money from the USA to India

A recent report by the World Bank indicates that in the year 2022, India has become the first country in the world to receive over $100 billion in remittances from NRIs abroad, contributing nearly 3% of India’s gross domestic product (GDP).

India has consistently topped the chart of the largest remittance beneficiaries for the past 15 years, with $89.4 billion and $80.2 billion in remittances received in 2021 and 2020 respectively.

A gradual shift in Indian migrants’ destinations from low-skilled jobs in the Gulf Cooperation Council (GCC) countries to high-skilled jobs in high-income countries such as the USA, the United Kingdom, and East Asia has contributed to this trend.

The USA has become the top remittance source country for India since the year 2020-2021, accounting for 23% of total remittances. This trend can be attributed to several factors, including:

  1. India has the largest diaspora population in the world, with over 32 million Non-Resident Indians (NRIs) and People of Indian Origins (PIOs) residing outside India. The USA also has the largest Indian population at 4.46 million (1.28 million NRIs and 3.18 million PIOs).
  2. Nearly half of the Indians in the USA hold graduate degrees, which has a direct impact on their household income, with median household income for Indians in the USA being nearly $120,000 compared to about $70,000 for all Americans.
  3. Indian migrants may also have taken advantage of the depreciation of the Indian rupee against the US dollar.

Ways of sending money from the USA to India

There are numerous reasons why people undertake this financial transaction of sending money from the USA to India. From supporting family members to investing in the Indian economy, from funding educational expenses to conducting business transactions, the purposes for sending money to India are diverse and multifaceted.

Sending money overseas can be done in different ways. Some of the parameters that can differentiate the service quality of different money transfer companies/apps are simplicity, decreased transfer fees charges and swiftness.

It is important to do some research on the best way to transfer money internationally.

ACH transfer

ACH transfer is an electronic funds transfer system that allows the transfer of money between bank accounts in the United States. The Automated Clearing House (ACH) network connects participating banks and financial institutions to process transactions such as payroll deposits, bill payments, and direct debits.

While ACH transfer is a popular option for domestic money transfers within the US, it is not typically used for international money transfers.

Despite the common use for domestic money transfer, it is still possible to send international ACH payments.

In fact, more than 100 million international payments were processed through ACH, with a combined value of more than 200 billion USD in 2021 alone.

Although not all banks are offering international ACH transfer services, you can always rely on remittance service providers like Instarem, to fund an international transfer by local ACH, which can be converted and sent to the recipient overseas.

To use ACH for international money transfer, you can rely on Instarem and all you need to do is link your bank account on Instarem, and add your beneficiary bank account details. The details needed vary from country to country and thus routing number or SWIFT code might not be applicable to all.

For instance, transferring INR will require you to add IFSC code and bank account number to complete the transfer. The transfer will generally take 2 to 4 business days to complete.

Telegraphic transfer

A telegraphic transfer is a popular payment method for those who are looking to send money from the USA to India where money is sent from a sender and passes through multiple banks before reaching the recipient.

This method is typically more expensive than other transfer services because it involves correspondent banks. Due to this, transferring funds between individuals and businesses can be costly and time-consuming, often taking 1-2 days for a transfer to be processed.

Correspondent banks work together to form the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network, which ensures that payments only pass between banks that have commercial relationships with each other.

This method of payment is one of the oldest and most well-established services available. It is known for its accessibility, lack of restrictions on payment amounts, and the high level of security it provides.

However, one major drawback of telegraphic transfers is that they can be both time-intensive and expensive. Due to the involvement of multiple correspondent banks, the transfer process can be protracted and incur substantial fees, such as exchange rate margins and processing fees.

Wire transfer

Wire transfer is a widely used method for sending money internationally.

To initiate a wire transfer, the sender will need to approach a banking institution and make a request to transfer a specific amount of money.

In order for the bank to know where to send the funds, the sender will need to provide SWIFT or IBAN codes of the recipient. The transaction begins once the sender deposits the required funds and pays the transaction fees set by their bank.

The SWIFT network is widely used for wire transfers, where it serves as a communication protocol for most banks in the world. The network facilitates the transfer of data between banks and provides instructions for wire transfers.

Once the funds have cleared, a notification is then sent to the recipient’s bank, instructing them to complete the payment according to the provided instructions.

To settle the payment, both of the banks involved in the process must have a joint account with each other.

Alternatively, you can also use a remittance service provider like Instarem to facilitate a wire transfer depending on the currency involved. A wire transfer using Instarem does not need to bear any fees and it also offers a better exchange rate compared to when you initiate the transfer using a bank’s international transfer services, you will be able to send money to India more cost efficiently!

While wire transfers are a reliable and secure way to transfer money, the process can take a few days to complete. It’s essential to ensure that all the information provided is accurate to avoid delays or errors.

Wire transfers are commonly used for large sums of money, such as business transactions or buying property overseas.

International money order

International money orders are a type of payment instrument that allows individuals to transfer funds internationally by purchasing a money order from a provider, which can then be mailed or delivered to the recipient.

The money order contains a specific dollar amount, and the recipient can cash it at their local bank or financial institution.

International money orders offer a cheap, secure and reliable way to send money especially to remote places in India.

International money order providers include major banks such as Wells Fargo and Bank of America, as well as financial service companies like Western Union and MoneyGram.

These providers offer various options for purchasing and delivering international money orders, including online and in-person options. While international money orders can be a convenient option for transferring funds, it’s important to compare the fees and processing times of different providers to ensure you’re getting the best deal.

Bank drafts and cashier’s checks

Bank drafts and cashier’s checks are financial instruments that can be obtained at any bank. These payment methods involve a fee, and there may be a delay in cashing them in India. Compared to money orders, bank drafts typically have higher fees.

However, they offer the advantage of being traceable in case the check or draft doesn’t reach the intended recipient. Bank drafts and cashier’s checks are considered more cost-effective than other transfer options, but the process can be time-consuming.

When purchasing a bank draft, the bank guarantees payment, making it a secure form of payment. It is similar to a cashier’s check, where the bank withdraws the funds from the account and issues a check to the recipient.

This method is ideal for sending large amounts of money and is commonly used for transactions such as buying a house or car.

However, it is important to note that banks may have restrictions on the maximum amount that can be transferred via bank draft or cashier’s check.

Getting to know Instarem

Instarem is a fintech brand that specializes in digital money transfers, offering a low-cost and fast remittance service.

Founded in 2015, Instarem has established itself as a leading provider of international money transfers. Instarem’s strong banking network and advanced technology allow it to complete transfers in as little as 0-2 business days (depending on the destination, method of payment and recipient’s banking regulations), making it faster than many other providers.

Instarem also offers competitive rates to many countries, with an established presence in various markets worldwide in 60+ countries.

The platform is one of the only companies that offer a simple and hassle-free way for individuals to transfer money from anywhere in the world be it Personal to Personal account (P2P) or Personal to Business account (P2B).

Additionally, Instarem for business simplifies international payments for small and medium businesses where it allows businesses to make quick and easy payments to business partners in over 170 countries and also allows businesses to receive money in 6 foreign currencies:

  • SGD,
  • USD,
  • GBP,
  • EUR,
  • AUD,
  • HKD.

Why Instarem is the best option to send money from USA to India?

Want to send money from the USA to India? There are various options available. However, not all services are created equal. Factors such as speed, convenience, and cost-effectiveness play a significant role in deciding the best way to transfer funds. One service that stands out among the rest is Instarem.

With its innovative technology and customer-centric approach, Instarem has become a popular choice for people who frequently send money to India.

Let’s look at some of the reasons why we think Instarem is the best option send money to NRE accounts, friends and family, pay for investments, loans or salaries to staff, and contractors, and perform intracompany transfers.

*Low fees and great exchange rates

send money with instarem

When it comes to sending money abroad, it’s no secret that fees and exchange rates can eat into your hard-earned cash. But with Instarem, you don’t have to break the bank to transfer money internationally. They offer significantly low fees and good currency exchange rates with a nominal markup or close to the real exchange rate.

Getting your money in an instant

Instarem offers fast and transparent international money transfer services, helping individuals and businesses simplify cross-border payments. Most transfers are either instant or same-day but sometimes it might take up to 2 business days for certain countries and payment methods.

Since the platform’s digital app and website are available 24/7, allowing you to initiate transfers at any time.

Plus, Instarem lets you track your transactions, make changes to your list of beneficiaries (up to 10), and review your transaction history. This level of transparency ensures that you always know how much you’re spending and how much your recipient is receiving, all at your fingertips.

Safe and secure transfer

Instarem takes security very seriously and it is regulated by 9 financial regulators across the globe so you can be sure Instarem does everything by the book. Our compliance with the regulators relies heavily on the safety and security of your funds.

That’s why we leave no stone unturned safeguarding your money and maintaining real-time fraud prevention measures for total peace of mind. On top of that, Instarem also uses state-of-the-art encryption and security protocols to protect users’ data and financial transactions.

Know exactly what you’re paying

Instarem is committed to providing its users with a transparent and cost-effective international money transfer experience. Instarem offers upfront pricing, meaning that all fees are disclosed before you make a transfer. This ensures that there are no hidden charges or surprises when you send money through their platform. With Instarem, you can easily calculate the total cost of your transaction, including the exchange rate and fees, so you know exactly how much your recipient will receive. This level of transparency and honesty is a testament to Instarem’s commitment to providing its users with a fair and reliable service.

Earn rewards and save more

Instarem not only offers low fees, fast transfers, and transparency, but also rewards its users with every transaction. Every transaction earns you points (InstaPoints), and the more significant the transfer amount, the more points you receive.

send money with Instarem

**rates are for display purposes only…

You can redeem these points for discounts on future money transfers! This program is a fantastic way to save even more money on your international money transfers while still using a reliable and secure platform.

Ready to send money?

Try Instarem for your next transfer.

Download the app or sign up here.

*Fees are dependent on funding method.
**Rates are for display purposes only.

About Instarem

Instarem stands at the forefront of international money transfer services, facilitating fast and secure transactions for both individuals and businesses. Our platform offers competitive exchange rates for popular currency pairs like USD to INR, SGD to INR, and AUD to INR. If you're looking to send money to India or transfer funds to any of 60+ global destinations, Instarem makes it easy for you. We are dedicated to simplifying cross-border payments, providing cutting-edge technology that support individuals and businesses alike in overcoming traditional fiscal barriers normally associated with banks. As a trusted and regulated brand under the umbrella of the Fintech Unicorn Nium Pte. Ltd., and its international subsidiaries, Instarem is your go-to for reliable global financial exchanges. Learn more about Instarem.