Sending money from the US to India

Two numbers decide how many rupees arrive in India, and providers usually advertise only one of them.

The first is the fee: a flat or percentage charge shown when you pay. The second is the exchange-rate margin: the gap between the mid-market rate you see on Google and the rate the provider actually gives you. A provider promising “zero fees” is usually taking its cut through the margin instead. On a USD 10,000 transfer, a margin half a percentage point wider costs you USD 50.

The only fair comparison is the amount your family receives in rupees for the same number of dollars. Our INR converter shows it for each currency.

Choosing a provider

The picks and the table above rank the main providers on total cost, speed and support for NRE accounts, using the criteria on our rating methodology page. In short:

• Wise gives the mid-market rate and shows its fee up front. It is usually the cheapest for transfers up to about USD 10,000. See our Wise review .
• Remitly is fastest on its Express tier, and its first-transfer offers often beat everyone for a new customer. See our Remitly review .
• OFX charges no transfer fee above USD 1,000 and gets more competitive as amounts grow.
• Western Union is mainly useful when the recipient needs to collect cash.
• Your US bank is usually the most expensive: wire fees often run to USD 25 to 50, on top of a wider margin.

Fund transfers by ACH rather than by debit or credit card, which adds a percentage fee. If you send money every month, one larger transfer costs less than several small ones.

NRE or NRO: where the money should land

Money you earn in the US belongs in an NRE account. Interest on it is tax-free in India, and you can move both the money and the interest back to the US whenever you like.

An NRO account is for income that arises in India, such as rent or dividends. Its interest is taxed in India, with 30% deducted at source plus surcharge and cess, although the India-US tax treaty can reduce that. Our NRI banking guide explains both.

What you have to report in the US

Sending your own money to India is not a taxable event in the US. Three reporting rules still catch many Indian Americans:

• Gifts (Form 709). If you give any one person other than your spouse more than USD 19,000 in a year (the 2026 annual exclusion), you must file a gift tax return, even if the recipient is a parent or sibling. Tax is rarely due, because it comes out of a large lifetime exemption, but the filing is not optional.
• FBAR (FinCEN Form 114). If your foreign accounts together exceed USD 10,000 at any point in the year, you must file an FBAR. That includes NRE and NRO accounts, fixed deposits, PPF, and accounts where you only have signing authority.
• FATCA (Form 8938). A single filer living in the US must report foreign financial assets worth more than USD 50,000 at the end of the year, or more than USD 75,000 at any point during it, with their Form 1040.

These are reporting requirements, not extra taxes, but the penalties for missing an FBAR can run into five figures a year even when no tax is owed. Our US NRI hub covers the rest of the US side.

Rates and fees change often, so compare current figures before you transfer. NRIWallah may earn a commission from partner links; see how we make money .