Sending money to India.

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Dude5568
Posts: 17
Joined: Thu Apr 28, 2016 2:46 pm

Sending money to India.

Post by Dude5568 » Fri May 24, 2019 9:51 am

Good morning ,

I apologize if this has been asked before . I need to send about 15 k ( the limit for gift tax ) to my parents in India . What is the best way to do this ? If anyone on this forum has specific experience with this , would they mind sending me a private message ?

Thanks a lot.

jminv
Posts: 897
Joined: Tue Jan 02, 2018 10:58 pm

Re: Sending money to India.

Post by jminv » Fri May 24, 2019 10:29 am

Looks like Xoom is cheapest for that currency pair and the amount.

You can compare rates at monito.


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lthenderson
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Location: Iowa

Re: Sending money to India.

Post by lthenderson » Fri May 24, 2019 12:08 pm

I have written several personal checks to my overseas inlaws over the years. They simply take it to their bank and deposit in local currency. I don't know what the fees are on their end to say it is the cheapest way but it is certainly the easiest way on my end.

lakpr
Posts: 1860
Joined: Fri Mar 18, 2011 9:59 am

Re: Sending money to India.

Post by lakpr » Fri May 24, 2019 12:19 pm

lthenderson wrote:
Fri May 24, 2019 12:08 pm
I have written several personal checks to my overseas inlaws over the years. They simply take it to their bank and deposit in local currency. I don't know what the fees are on their end to say it is the cheapest way but it is certainly the easiest way on my end.
I had done that too, once. The exchange rate your in-laws are getting is at least 3% to 5% lower than what is mentioned in my link above. Plus it takes at least two weeks before the money gets there.

If you subscribe to the Boglehead philosophy that paying loads or expense ratios > 1% on your investments is wrong, then the thought of paying 3% to 5% more in expenses should make your blood boil.

A simple example. Sending $2000 to India, your in laws would get the equivalent of $60 less than they deserve. That is Rupees 5000 give or take a few, depending on the exchange rate. In India, that is easily a couple of weeks of expenses for a family of 4.

bgf
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Re: Sending money to India.

Post by bgf » Fri May 24, 2019 12:28 pm

“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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CAsage
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Re: Sending money to India.

Post by CAsage » Fri May 24, 2019 12:33 pm

If this is a regular thing, or you might see doing it again, mail them an ATM card linked to your account, and let them withdraw the cash there. Ok, that might be iffy with a single large transaction, but I have a friend who does that with a relative out of the country. Best exchange rate. Send the PIN separately and you really have to trust them, or set up a separate savings account to link the ATM card....
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

lakpr
Posts: 1860
Joined: Fri Mar 18, 2011 9:59 am

Re: Sending money to India.

Post by lakpr » Fri May 24, 2019 12:48 pm

CAsage wrote:
Fri May 24, 2019 12:33 pm
If this is a regular thing, or you might see doing it again, mail them an ATM card linked to your account, and let them withdraw the cash there. Ok, that might be iffy with a single large transaction, but I have a friend who does that with a relative out of the country. Best exchange rate. Send the PIN separately and you really have to trust them, or set up a separate savings account to link the ATM card....
Excellent suggestion.

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whodidntante
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Re: Sending money to India.

Post by whodidntante » Fri May 24, 2019 1:13 pm

You can send 15k each to as many parents as you have. Which would be mighty generous of you.

saagar_is_cool
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Joined: Thu Jan 30, 2014 2:21 pm

Re: Sending money to India.

Post by saagar_is_cool » Fri May 24, 2019 1:37 pm

moneydart.com has worked well for me for large transactions with decent exchange rate. Their site itself for transfer is money2anywhere.com

sk2101
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Joined: Sun Jun 02, 2013 4:54 pm

Re: Sending money to India.

Post by sk2101 » Fri May 24, 2019 2:48 pm

check the rates at Transferwise

logiclife
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Location: Windy CIty

Re: Sending money to India.

Post by logiclife » Fri May 24, 2019 3:09 pm

CAsage wrote:
Fri May 24, 2019 12:33 pm
If this is a regular thing, or you might see doing it again, mail them an ATM card linked to your account, and let them withdraw the cash there. Ok, that might be iffy with a single large transaction, but I have a friend who does that with a relative out of the country. Best exchange rate. Send the PIN separately and you really have to trust them, or set up a separate savings account to link the ATM card....
Talk to your bank first before you do it. Just incase if that atm card is lost or stolen and somehow the money is withdrawn from your account, would that be covered by your bank since it's outside the US.

logiclife
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Location: Windy CIty

Re: Sending money to India.

Post by logiclife » Fri May 24, 2019 3:11 pm

Dude5568 wrote:
Fri May 24, 2019 9:51 am
Good morning ,

I apologize if this has been asked before . I need to send about 15 k ( the limit for gift tax ) to my parents in India . What is the best way to do this ? If anyone on this forum has specific experience with this , would they mind sending me a private message ?

Thanks a lot.

Used xoom multiple times with no issues. May not be the best exchange rate but for me safety and security of money ending up in the destination bank within a day is of utmost importance to me

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Will do good
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Re: Sending money to India.

Post by Will do good » Fri May 24, 2019 3:50 pm

logiclife wrote:
Fri May 24, 2019 3:11 pm
Dude5568 wrote:
Fri May 24, 2019 9:51 am
Good morning ,

I apologize if this has been asked before . I need to send about 15 k ( the limit for gift tax ) to my parents in India . What is the best way to do this ? If anyone on this forum has specific experience with this , would they mind sending me a private message ?

Thanks a lot.

Used xoom multiple times with no issues. May not be the best exchange rate but for me safety and security of money ending up in the destination bank within a day is of utmost importance to me
Do you pay with your Bank account, credit card and debt card?
Do you trust them with your bank account info?
Thanks

tfunk
Posts: 17
Joined: Sat Apr 02, 2016 11:50 am

Re: Sending money to India.

Post by tfunk » Fri May 24, 2019 5:20 pm

We sent a wire from our checking account to an account in India last year. Our bank allows online international transfers. Of course it cost us around 3% currency exchange on our end and their bank charged them 600 INR on their end. Our amount was very small - $200 - so you would want your parents to check what the charge would be on their end for the larger amount. Also check the currency exchange rate on your end with whoever you use.

Very easy, took about 10 minutes from home.

smpatel
Posts: 153
Joined: Mon Jan 16, 2012 10:30 am

Re: Sending money to India.

Post by smpatel » Fri May 24, 2019 5:40 pm

I have used Remitly. Great exchange rates and first time promotions too. Also, the easiest and hassle free compared to others who ask to open the account take all information and at the end ask for bunch of other documentation before processing your transfer.

You can also combine Remitly with other services and find out how easy it is.

Topic Author
Dude5568
Posts: 17
Joined: Thu Apr 28, 2016 2:46 pm

Re: Sending money to India.

Post by Dude5568 » Fri May 24, 2019 6:10 pm

Seems like "Xoom" is the preferred service for international transactions . I'll check it out.

BTW , what are the reporting requirements to the IRS for this amount ? Since the gift tax is waived for 15 k or under , do I have to report this to the IRS at all ?

Thanks .

logiclife
Posts: 53
Joined: Tue Apr 26, 2011 6:11 pm
Location: Windy CIty

Re: Sending money to India.

Post by logiclife » Fri May 24, 2019 9:07 pm

Will do good wrote:
Fri May 24, 2019 3:50 pm
logiclife wrote:
Fri May 24, 2019 3:11 pm
Dude5568 wrote:
Fri May 24, 2019 9:51 am
Good morning ,

I apologize if this has been asked before . I need to send about 15 k ( the limit for gift tax ) to my parents in India . What is the best way to do this ? If anyone on this forum has specific experience with this , would they mind sending me a private message ?

Thanks a lot.

Used xoom multiple times with no issues. May not be the best exchange rate but for me safety and security of money ending up in the destination bank within a day is of utmost importance to me
Do you pay with your Bank account, credit card and debt card?
Do you trust them with your bank account info?
Thanks

Bank account.

Xoom owned now by PayPal.. So I hope I could trust :wink:

bayview
Posts: 1784
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: Sending money to India.

Post by bayview » Fri May 24, 2019 9:55 pm

Dude5568 wrote:
Fri May 24, 2019 6:10 pm
Seems like "Xoom" is the preferred service for international transactions . I'll check it out.

BTW , what are the reporting requirements to the IRS for this amount ? Since the gift tax is waived for 15 k or under , do I have to report this to the IRS at all ?

Thanks .
No reporting required for $15k from one individual to another. If you’re married, you and your spouse could each give $15k to each of your parents for a total of $60k with no requirement to report.

And in fact, you don’t have to pay “gift tax” for over $15k. You just have to report it, and the excess over $15k would be charged against your estate gift tax exemption. You’d have to make a lot of gifts these days to hit that figure, but it could always drop again, and I’ve read that the reporting is seen as confusing and annoying by many.

https://smartasset.com/retirement/lifet ... -exemption
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

njdealguy
Posts: 73
Joined: Wed Jul 26, 2017 8:15 am

Re: Sending money to India.

Post by njdealguy » Fri May 24, 2019 10:19 pm

CAsage wrote:
Fri May 24, 2019 12:33 pm
If this is a regular thing, or you might see doing it again, mail them an ATM card linked to your account, and let them withdraw the cash there. Ok, that might be iffy with a single large transaction, but I have a friend who does that with a relative out of the country. Best exchange rate. Send the PIN separately and you really have to trust them, or set up a separate savings account to link the ATM card....
Most ATMs in india have a 10k to 15k Indian rupee withdrawal limit per transaction, which is about $200 USD at most. So any foreign ATM withdrawal fees may be charged each time, making the cost potentially worse than other avenues.

spectec
Posts: 1400
Joined: Mon Jul 14, 2014 8:00 am

Re: Sending money to India.

Post by spectec » Sat May 25, 2019 5:42 am

I've used Moneygram and Western Union to send money to India, but not in the amounts you are sending. Seems like you'd have to split the $15,000.00 into two separate transactions and pay about $30.00 for each transaction. I think (but am not certain), they would get the official exchange rate on their end.

If they have a bank account in India, a wire transfer from your US bank would work. Not sure about the cost, but it's safe. You might have to put up with a couple of calls from the bank to verify you aren't the victim of a scam, which you certainly aren't since it's your parents, but I think that's wise bank policy. If you are going to be sending them money in the future, setting up the bank wire is a good practice. Once you've been through the steps you will have all the info you need for future transactions, which makes it easier going forward.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

fujiters
Posts: 227
Joined: Tue Mar 06, 2018 2:17 pm

Re: Sending money to India.

Post by fujiters » Sat May 25, 2019 6:03 am

njdealguy wrote:
Fri May 24, 2019 10:19 pm
CAsage wrote:
Fri May 24, 2019 12:33 pm
If this is a regular thing, or you might see doing it again, mail them an ATM card linked to your account, and let them withdraw the cash there. Ok, that might be iffy with a single large transaction, but I have a friend who does that with a relative out of the country. Best exchange rate. Send the PIN separately and you really have to trust them, or set up a separate savings account to link the ATM card....
Most ATMs in india have a 10k to 15k Indian rupee withdrawal limit per transaction, which is about $200 USD at most. So any foreign ATM withdrawal fees may be charged each time, making the cost potentially worse than other avenues.
If you're setting up a new account for this, Charles Schwab reimburses ATM fees and does not charge a foreign transaction fee. You get the interbank exchange rate. Highly recommend this option unless the daily withdrawal limits (normally imposed by the ATM from which they withdraw--so could be highly variable) will be too low to be viable.

I've also used Transferwise for paying into foreign accounts, although not specifically to India. Their rates are very competitive (but still worse than what you get from a straight ATM withdrawal since they add a small fee).
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

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Will do good
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Re: Sending money to India.

Post by Will do good » Sat May 25, 2019 8:03 am

logiclife wrote:
Fri May 24, 2019 9:07 pm
Will do good wrote:
Fri May 24, 2019 3:50 pm
logiclife wrote:
Fri May 24, 2019 3:11 pm
Dude5568 wrote:
Fri May 24, 2019 9:51 am
Good morning ,

I apologize if this has been asked before . I need to send about 15 k ( the limit for gift tax ) to my parents in India . What is the best way to do this ? If anyone on this forum has specific experience with this , would they mind sending me a private message ?

Thanks a lot.

Used xoom multiple times with no issues. May not be the best exchange rate but for me safety and security of money ending up in the destination bank within a day is of utmost importance to me
Do you pay with your Bank account, credit card and debt card?
Do you trust them with your bank account info?
Thanks

Bank account.

Xoom owned now by PayPal.. So I hope I could trust :wink:
Thanks!

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