Tips to save on online money transfer

Over the last few days, sending money through the method of an online transfer has become a popular option. Whether it is sending the funds internationally or domestically, certain factors are required to be kept in mind in order to save funds during this online money transfer. In order to plan better savings during these transfers, here are a few factors you can consider:

Locked in rate

Exchange rates play an important role when it comes to calculating the overall amount. At times, you may notice a considerable difference in the amount before you make the transfer and after the transfer has been processed. This is due to the ‘bait and switch’ approach, where a lower amount is displaced before the transfer is made with a higher amount after it has been made. To avoid such an increase in the exchange amount, opt for a service that provides you a lock in the rate.

Narrow your research

While there are plenty of options available in the market, it is often tough to consider all of them without assistance. The internet search engine will provide you with plenty of options. However, to get the best option out of the available options, you need to narrow down your research to specifics. For example, searching for a money transfer service will provide you with a general search. However, if you search for money transfer service with deals will provide you with a more specific search. Through such a search, you will have a better chance of finding the best deal and discounts that will help save funds during an online transfer.

Payment option
When you are setting up a money transfer, you will notice that there are plenty of payment methods you can opt for to make a transfer. Some of the common options include a credit card, debit card, and ACH, which the automated clearing house option. Each of these options has different rates. Therefore you must compare them before making a choice.

Choosing the best time
The time you opt for transfer will also play an important role. Special promotions often come up during holidays or special international holidays. You can time your online money transfer during these periods. Apart from this factor, if you are planning to make an online transfer on a monthly basis, opt for midweek days such as a Tuesday or a Wednesday as this is when there is a low transfer period. It is during this time; you will get the best deals as there is low traffic which plenty of money transfer services try to reduce by offering great deals.

Using these tips, you will surely save a significant amount on your money transfers. At the same time, it is important that you read all the fine print on the terms and conditions before you apply for it.

What are the options for the best way to send money to India?

Plenty of individuals who have settled abroad, look for ways and means to send funds back home. While traditional options such as wire transfer have been a popular option for several individuals, online money transfers are slowly taking over. However, bank drafts may still seem the best way to send money to India, especially on a regular basis. But with so many options and each factor to consider, how do you to for the best option? Given below are the various options available in the market and how they can benefit your requirements.

ACH transfer:

Automated Clearing House, also known as ACH, is an electronic fund transfer system, which is used in the US. It is governed by the National Automated Clearing House Association’s operating rules, which also regulates clearances of electronic payments and transactions within participating financial institutions. Through this mode of transfer, the recipient can pick the transferred amount within four working days. This is the ideal option for those who want to save time and funds.

Online transfer:

Online transfer is slowly becoming one of the best ways to send money to India. All that is required is an internet connection along with the use of the local banking services to transfer money to any account within India. In addition to this, you will also need access to information that includes the name and address of the account holder, or recipient. You will also require information about the financial institution the money is being transferred to. Additionally, you may also need the IBAN or SWIFT Code of the recipient bank. If you make regular transfers, this is best option to consider.

Wire transfer:

As previously mentioned, the wire transfer option has been one of the most popular choices of fund transferring, especially for international transfers. The sender will be required to go through a financial institution in order to send funds to the receiver. The wire transfer collects information about the recipient and the recipient’s bank or facility.  Once the required information has been acquired, the sender’s financial institution will proceed with the wire transfer.

PayPal

PayPal is one of the many services that allows individuals to transfer money electronically, from one account to another. Normally, it is free for the sender; a fee is charged to the recipient. Additionally, the exchange rate of transfer is different for local transfers as compared to international transfers.

Bank Drafts and Cashier’s Checks

Bank drafts and cashier checks are accessible at any bank or financial institute. However, there is a fee associated with these services. Additionally, it will take time for the checks to be cashed in India. You will also need to pay more for the purchase of bank drafts as compared to money orders. One advantage of this money transfer is that it can be traced in the event it does not reach its destination.

Factors to consider when sending money to India from the USA

Plenty of Indians have settled in the USA for better career options as well as a better lifestyle. At the same time, these individuals send funds back home, for various reasons ranging from families to repaying a property purchase back home.

However, with so many options available in the market, how can an individual choose one that will suit his needs? Given below are a few features you can consider when opting for an option to send money to India from the USA.

Exchange rates:
This is one of the most important and first feature you will need to consider when comparing options to send money back home. While this exchange rate will not be fixed on a daily basis, the variations offered between the rates is often similar. However, you must keep in mind, while the exchange rates may be beneficial, you may need to pay higher transfer fees.

Transfer fee:

Each transfer company will offer their transfer fees. Therefore, it is crucial that you review the fees before you apply for the transfer or even proceed with the transaction. Look for companies that offer you transfer fees that match your requirements. At times, some companies also waive the fees if you transfer more than the minimum amount.

Transfer method:

There are plenty of companies that offer traditional means of transfer, such as a demand draft, wire transfer or even through cheques. Alternatively, some companies also offer digital transfers through emails. Some companies also allow you to make the transfer through the means of a single phone call or a message. You will also need to compare payment options available, such as bank deposit, debit or credit card.

Transfer time:

Each company will offer you different time durations when making a transfer. This is a crucial factor to consider, especially when you want to send an emergency fund to your destination company. Additionally, to reduce the duration of the time taken for the transfer, you may need to pay a premium. Alternatively, some companies only specialize in quick services.

Pick up methods:
As a sender, you will need to consider options that will provide you the means to send money to India. However, at the same time, you will need to consider how the receiver will have access to the funds. Will the funds be transferred directly to the recipient’s account or can does the receiver need to pick up the funds from a fixed location?

Transfer options:

At the time, you will want to make a flexible transfer. This includes the ability to lodge contracts forward, place orders in the financial market or even schedule payments in advance. You can look for options that offer you this flexibility.

What are the best investment options available for NRI’s today?

Plenty of individuals have traveled abroad for various purposes such as earning in a foreign currency, change in job location or even migration purposes. Some individuals also travel abroad to study and end up applying for a job with the same country.

No matter the reason, plenty of these individuals still wish to invest in opportunities, back in their home country of India. Supporting this decision is the government regulations that provide the legal framework along with the value of the falling rupee. Along with this, there are plenty of options to consider when it comes to investing. Here are a few options for NRI investment in India you can consider:

Bank Fixed Deposit:This is one of the most popular choices amongst NRI who wish to invest. Not only does plenty of banks offer this opportunity to NRI’s, but you will also have the option to invest in the local currency or the foreign currency. Normally, banks provide attractively, and high rates on NRI fixed deposits, making in the best option for high returns. With this option, you can opt for NRE deposit, NRO deposit or even the FCNR account.

Mutual funds: Mutual funds is another option that can be taken into consideration for anNRI investment in India. This is extremely beneficial to those who already hold any of the three NRI bank accounts, namely the NRE, NRO or FCNR account.  However, the investment in this option must be made in foreign currency. Additionally, the investment amount can be directly debited from the NRE or NRO account.

Direct Equity: Under the portfolio investment scheme of RBI, NRI’s can invest directly in the stock market. Under this regulation, the maximum investment that cannot go beyond 10% of the paid-up capital of the company. In this case, in addition to the NRI account, a demat account, and brokerage must also be opened. All transactions must be made through the stock broker only. Additionally, NRI’s do not have the permission to trade during the day or short sell within India.

Real estate sector: If NRI fixed deposits have been a popular option for NRI’s, the real estate sector has been a traditional option. Plenty of Indians may leave home and settle abroad, but a property back home will always consider as a prized possession. This NRI investment in India also has an added advantage, as property prices often appreciate, providing the ideal form of emotional security. All in all, the real estate sector is considered as one of the most lucrative investment options for NRI’s.

Apart from these options, there are plenty more to consider. However, you must first check the regulations and conditions of your resident country when it comes to investing these options in your home country.

What happens to the financial accounts of an NRI on return home?

Plenty of individuals travel and settle abroad while investing in financial assets in the home country. These financial assets can include property, selected equities and even hold an NRI bank account. Amongst the several options, the bank account has been the most favorable, due to its flexibility and convenience, amongst many other advantages.

However, an NRI can hold any of these NRI accounts, on the condition of their NRI status. In the event, the account holder returns home, the status and the functionality of the account will change. Here is how the NRI accounts are affected on return to India:

Change of NRI accounts status when returning to India: There are different types of NRI bank accounts available to an NRI. They include the NRO account, NRE account, and the FCNR account. Each of these accounts hasa different functionality, in addition to holding different forms of currency. They also have different restrictions and conditioning. When the account holder returns to India, the bank must be informed about the change in status, which in turn, will change each of the account’s functions and conditions. In the case of the NRO account, it will be converted back into the resident saving account. The NRE and FCNR account will get converted into the Resident Foreign Currency account.


Change of the NRI termed deposit when returning to India: On returning to the home country, the NRI’s termed deposits such as FCNR can be held until it matures. After maturity, the FCNR fixed deposit must be converted to the RFC account. However, the interest that is taxed on this account will depend on the status of the account holder, especially if he has stayed abroad for 9 years, in the previous 10 years, making him a resident, but not ordinarily resident status. If the account holder qualifies for this status, then the interest that is earned on the RFC account will be tax-free for the next 3 years.

Change of NRI bank accounts which holds foreign currency: NRI’s who hold foreign exchange on their return home, and wish to hold it without converting can opt for the Resident Foreign Currency account in India. Such an individual can open the account on condition that he or she must reside abroad for a continuous period of 1 year, before opening the RFC account. The RFC account can hold foreign currencies of the US dollar, Euro, Great Britain Pound and the Japanese Yen. This RFC account can be opened either in the form of savings account or a fixed deposit. The interest is taxed on this account unless the account holder qualifies for the RNOR status.

Debit Card: Be aware before you swipe your card here

Amongst all the different banking cards available, the debit card has always been a popular choice for many card holders. Not only can you use this card to make a transaction at the point of purchase, but you can also use it to withdraw funds from any ATM. Additionally, certain debit cards also allow you to collect reward points if you make purchases at certain outlets.

However, your card will be as useful to you, as it is safe. In other words, the funds within the account attached to your card will be safe, as long you are aware of the usage of the card. With plenty of fraudsters and scammers looking for an opportunity to make a quick buck, at the expense of others, debit cards have become a slow favorite for these individuals. Here are a few places you must be wary of before you swipe your debit card to avoid becoming the next unsuspecting victim for these individuals.

When making a purchase online

One of the popular usages of the debit card is online shopping. You only need to select the product, place it in the virtual shopping bag and enter your card details to make the purchase valid. However, if the payment gateway is not secure, the details of your card will be made public, allowing fraudsters to access it with ease. Additionally, if the purchased merchandise is not delivered or damaged in the process, you may not get your money back.

At the supermarket self – check out counter

Plenty of supermarkets are slowly becoming financial savvy while focusing on the overall productivity of the market service. The self-checkout counter is one such example, wherein, you only need to scan your products, and make the payment through the self-check banking card reader. However, when making a payment through these lanes, skimmers on the card reader slot collects information about the card being used and stores the data on an embedded chip. The data then can be used to access your account, or even change the details on it, thus restricting your use of the card.

When booking any advance travel

It is not uncommon for individuals to book an advance travel transport, just because they see a good deal. However, while you may think that you’re saving on this deal, in the long run, you may lose the funds on the payment, when the travel business can go bust, in an economic downturn. As debit cards do not offer the charge back features, you may end up losing your funds on this deal. To be on the safe side, use your debit card, only if you are confident of the travel company.

At a restaurant

Restaurants have a high turnover, especially if you are one of the regular individual's visit on a regular basis to your favorite joint. While on each visit you use your card, there is always a risk that a fraudster posing as an employee can access your card details, on any of your trips to the restaurant.

What are the popular NRI loans in India?

Plenty of individuals from India have settled abroad for various reasons ranging from settling abroad, better work environment or even for studying purposes. Although these individuals have settled abroad, they would still like to maintain some form of attachment or tie, back to their families or home countries. This may include investing in a property near the family home, renovating a property belonging to them, or even investing in a vehicle.

The financial market of India has recognized this need and requirements while focusing on means to tap the NRI market. Therefore, they have created liberal criteria to evaluate the request for the various loan categories that includes age, tenure, and income amongst many others. With the NRI loans, the minimum age of the applicant must be 21 years with the maximum at 60 years. In addition to this, the tenure of the loan is often less as compared to the local loans offered to Indian residents. Additionally, the annual income of the applicant must be over 40,000 USD. However, it can vary as per the policy of the individual’s bank.

Here are some of the popular NRI loans, and how you can benefit from it:

Home Loans

This is one of the most popular NRI loans. As in plenty of cases for most expatriates, most NRI’s would like to maintain some connection with their homeland. What better way to do so, than by investing in a property, in India? Plenty of banks and financial institutes have recognized this desire and have created a variety and diverse schemes, suited to the needs of NRI’s. Therefore, such a home loan makes sense for any NRI to utilize to their advantage.

Home improvement or renovation loan
At some point in life, every property will need to undergo renovation or repair work. For certain individuals, it can be an expensive affair, which can go well beyond their means or affordability. Additionally, opting for a local home renovation loan may not be sufficient, especially regarding repayment. In this case, any individual within the family who is working or settled abroad can opt for NRI loan specialized in home improvement or renovation. Before applying for this loan, however, the applicant must check the criteria for it, as it can differ from one institute to another.

Vehicle loans

In the case of vehicle loans for NRI, the criteria can differ from bank to financial institute. While some institutes will provide NRI loans to the NRI themselves, they may still request for a resident Indian to stand as a guarantor. Alternatively, some institute will allow NRI’s to become a guarantor while availing the loan under the name of an Indian resident. In this case, although the NRI’s status on the loan application is as a guarantor, the individual may be required to pay the EMIs.