How to Send Money From the USA to India
Every remittance app advertises how cheap it is. The number that actually matters, how many rupees land on the other end for a given number of dollars sent, rarely matches the headline fee, because a lot of the real cost is hidden in the exchange rate rather than the fee line.
Some links on this page may be affiliate links, meaning we may earn a commission if you sign up through them, at no extra cost to you. Fees, exchange rates, and transfer limits below are described as of when this page was checked and change often. Always confirm the current numbers on the provider's own site before sending.
The one thing that actually determines cost
Total cost is the transfer fee plus the exchange rate markup, not the fee alone. A provider that advertises "$0 fee" can still be more expensive than one charging a $5 fee, if the $0-fee provider quotes a worse exchange rate to make up the difference. The only honest way to compare two services is to check, for the exact amount you're sending, how many rupees the recipient actually gets from each. Wise is the one provider here that publicly commits to the real mid-market rate with no markup, recovering its revenue entirely through the disclosed fee instead, which makes it the easiest to reason about even when it isn't always the outright cheapest for every amount and speed combination.
| Provider | Fee | Exchange rate | Speed | Delivery to India |
|---|---|---|---|---|
| Wise | Small combined fixed + percentage fee, cheaper via bank debit than card | Real mid-market rate, no markup — Wise's core selling point | Typically same day to a couple of business days, depending on funding method | Bank deposit |
| Remitly | Flat, often near $0 above roughly $1,000; varies by amount and speed | Includes a markup over mid-market, roughly 0.4%–1.4% depending on the speed tier chosen | Economy (cheaper, up to ~5 days) or Express (near-instant, worse rate) — your choice | Bank deposit or UPI |
| WorldRemit | Fixed fee that varies by receive method, not by amount sent | Includes a markup over mid-market (not published as mid-market-rate like Wise) | Around 90% of transfers to India arrive within minutes, per WorldRemit's own figures | Bank deposit, cash pickup, mobile money |
| Xoom (PayPal) | $0 via PayPal balance; a few dollars via bank transfer; more via credit card | Above mid-market — the markup is where Xoom makes money on the "low fee" transfers | Cash pickup and smaller bank deposits often within minutes; UPI around 15 minutes | Bank deposit, UPI, cash pickup |
| Bank wire (Chase, Bank of America, Wells Fargo, and similar) | A flat wire fee, often waived if you send in INR instead of USD, since that is where the bank builds in its margin instead | The largest markup of this group, commonly cited around 2%–4% over mid-market | Typically 1–5 business days | Bank deposit only |
The new US remittance tax: does it apply to you?
A 1% federal excise tax on certain remittance transfers took effect 1 January 2026 in the US. It's worth knowing about because it's been widely reported as "a tax on remittances," which oversells how broadly it applies. The tax only hits transfers funded with physical cash, a money order, or a cashier's check at an agent or store location. Transfers funded through a US bank account, debit card, credit card, or a digital wallet like Apple Pay or Google Pay are not subject to it. Since sending through Wise, Remitly, WorldRemit, Xoom, or a bank wire is almost always funded digitally, most NRI remittances through the services on this page are unaffected.
Practical picks
- Sending a large, planned amount and want the rate you can actually verify: Wise, since you can check the mid-market rate independently and know exactly what markup (none) is being applied.
- Need cash pickup in India rather than a bank deposit: WorldRemit or Xoom both support it, Wise generally does not.
- Sending small, frequent amounts and want it to just be fast: compare Remitly's Express tier against Xoom's UPI option for the specific amount and time of day, since both are near-instant but price the tradeoff differently.
- A one-off large transfer and you'd rather deal with your existing bank: a wire will work, but expect to pay the largest markup of this group. Get a second-provider quote for the same amount before deciding it's not worth switching.
Frequently asked questions
Is the cheapest advertised fee always the best deal?
No. Compare the actual amount that lands in the recipient's account for the same amount sent, not the advertised fee, since the exchange rate markup is often the larger cost.
Do I need to report money I send to family in India?
Sending money as a personal gift to family generally does not trigger US gift tax reporting unless you exceed the annual per-recipient gift tax exclusion, which is a separate topic from the transfer fees on this page. Large or business-related transfers can have separate reporting implications, so check with a tax advisor if the amount is substantial.
Does the new 1% remittance tax apply to a Wise or Remitly transfer funded from my bank account?
No. The tax applies specifically to transfers funded with physical cash, money orders, or cashier's checks at an agent location. Digitally funded transfers, which is how these apps are used, are not subject to it.