Important features to remember when sending money online

Money transfer has progressively risen over the last few decades. Previously, it was used a means for migrants to send money back home. Today, it is it used for various purposes, such as making online purchases, transferring funds for donations, and other similar financial transactions.

What previously was a means of living, has now become an industry of their own. More and more institutes, apart from banking institutes are offering this service all around the world. And while there are plenty of service options available, the technology used to transfer funds has also improved. For one, you can send funds through the online portal. No matter the destination, location or even requirement for a bank account or not, you can now easily send money online.

But like any other money transfer service, there are certain factors you will need to keep in mind when opting for this service.

Is the service reliable?
One of the main features of a money transfer service you need to always take into consideration is reliability. Is the money transfer institute or bank you are opting for, has sufficient years of experience? Do they have sufficient staff?  What is their success rate of transfer? How prepared are they to deal with delays or financial emergencies? The answers to these features determines how reliable the service is when it comes to sending money online. Once you have the answers to these questions, you will get a level of understanding of reliability of these services.

How convenient is the service?
Convenience is another key factor you will need to take into consideration when you want to send money online. Can you connect your bank account directly to the service? Or would you be required to create another account with the service itself and transfer funds to that account? In addition to the sender’s requirements and features, you will also need to take into consideration the receivers requirements. Does the receiver need an additional account? Can the receiver receive the transfer directly into the bank account? Is there a physical platform where the receiver can receive the funds directly? Getting a clear understanding on these factors will give you a better picture on the convenience of the service the financial or bank institute will offer.

What are the safety measures taken by the service?
While each institute may have its own reliability when it comes to money transfer, they must also have the means to ensure that the funds are safely transferred. This can be in the form of establishing secure log – ins, or even taking on strict measures to verify identities. Additionally, one should also take steps to track the transfer of funds, by providing regular and real time updates.

Apart from these features, there are plenty more that you can take into consideration. However, it is important that you are well aware of what the banking or financial institute is offering before you make the money transfer.

4 important tips to keep in mind when making a money transfer to India

Reliable, efficient and safe money transfer systems have become the demand of the hour for the money transfer systems. With the number of migrants workers, globalisation and the internet have all helped the money transfer service become an industry of its own. Additionally, this number is likely to increase over the coming years.

This, in turn, has led to more companies entering the money transfer market, providing individuals with more options and variety of service. However, while the choices may be plenty, you would still be required to ensure that you are following safe protocol with any transfer you make. Therefore, to ensure that you make a secured money transfer to India, here are a few tips you can consider:

1. Check the size of the company

If the institute you are applying to, making a money transfer to India is newly developed or comprising of a small staff, then there is a high probability of something going wrong with the transfer. A medium to a large-sized company would be a better bet in this case.

2. Check the size of the transfer you are making

If you are making a large money transfer, you must look out for transfer services that offer the safest transactions and channels. In such cases, it is recommended that you make money transfers through bank wire transfers. The reason behind this is the security features they take into consideration. For example, when making a money wire transfer, the customers will need to provide sufficient forms of identification. Additionally, the wire transfer that is being made comprises of a highly secure encrypted message, which is designed to be difficult to intercept and interpret.

3. Identify the sender before sending funds

If you are sending funds to a known person, you need not worry. However, if you are sending funds, to people who you haven’t met apart from digital communication, then you must be wary or identify the sender before you are sending funds. This is normally the case in online auctions, internet purchases, or even charity donations. In such cases, there is a high probability that someone will simply take the funds and run.

4. Look out for phishing scams

While you still may be careful with transferring funds from your end, there is a chance you may fall victim to a phishing scam. Phishing scams can exist in the form of an email from a genuine business, which requests your banking and financial details in order to proceed with the transaction or business progress. They may even ask you to click a link in order to proceed with the proposition or to click details for more interest. The best way to avoid such scams is to simply go directly to the merchants site and not through a link in an email.

Key factors to consider to get a great auto loan

In order to ensure a successful automobile purchase, you need to get several factors correct. They include the right car, a good price and funding the purchasing in the most affordable way. One way to finance your purchase, is through an auto loan. This loan will help you purchase a car that costs more than you can afford wit cash. But before you opt for this loan, you will need to consider these key factors. They include:

Managing your credit

Like for any other loan, this is the first factor you need to consider before applying for the auto loan. The credit determines whether your lender will approve you for the loan, or even the loan amount you want. Your credit history indicates your history of borrowing from other lenders. This also indicates how much you have borrowed before, and whether you have repaid those loans on time. A good credit score will gives you a high probability of a low interest rate, higher loan amount and appropriate loan tenure. Therefore, before you apply for the loan, you must review and check your credit reports. Fix any errors that have affected your score before you proceed to the next step.

Be aware of your potential to expend

You must get a clear idea of how much you can spend in terms of down payments and monthly payments before you even start looking at cars. If you have got your eye on a vehicle even before reviewing your potential expenditure, you may fall prey to the beauty of it, and forget the fact that it might be out of your budget. Additionally, some salespeople will also make it appear that your car is affordable with carefully calculated maths and payment strategies. You must also be aware of your down payment, as larger the down payment the smaller the loan, and the more flexibility you will enjoy later through your monthly payments.

Focus on the big picture

You need to be aware of how the auto loanas it will equip you with sufficient knowledge and details to make a smart if not sound decision. As a buyer, when you lose perspective, you will end up focusing on your monthly payment as compared to the purchase price and total cost. Several dealers encourage on this, as it can easily be adjusted by lengthening the loan tenure. But a long tenure would mean additional interest. You may even focus on a vehicle with certain features, which may not fit your finances. Make sure you’re buying a car that you can truly afford while avoiding taking on a loan that will haunt you.

What are the NRI banking accounts that you should be aware of?

Many Indians who have travelled abroad and settled down, still have ties back to members back in their home country. This also includes the exchange of funds when required or on a regular basis. While this can be done through specialised NRI banking systems such as the NRI bank accounts, there will always remain the fact that most NRI’s are not completely aware of the different features of these accounts.
But why is it crucial to select the right banking account? For one, each account has different features and different requirements. It also has different means of taxations, which can affect your investments. To ensure that you are well aware of the different features of the NRI accounts and the NRI banking, given below is a brief review of the different accounts:

NRE Account (Non-Resident External Account):

• Any NRI can open this account.  It can also be held as a single account, or a joint account with another NRI. When opening this account with another NRI, the account holder may add the name of the Resident Indian in the account, with an added clause. This clause allows the primary account holder to use the account, wherein which, upon his or her death, theanother joint account holder has the right to operate the account.
• An NRI can open this account, but it must be held in foreign currency. It can also be used to remit funds in INR from abroad. The funds in this account are fully repatriable to the destination country where the NRI resides. However, the value of the currency is subjected to exchange rates of the currency at the time of such transfer
• The withdrawals made from this account can be used to make local payments.
• The account may be opened under the categories of savings, current or fixed deposit.
• The interest that is earned in this account is exempted from income tax
• The account holder can also take a loan against this account, in the INR currency.


NRO Account (Non-Resident Ordinary Account):

• Any NRI can open this account. It can also be heldas a single account or a joint account with another NRI. Alternatively, a Resident Indian can be added to this account.
• The account must be held in INR currency. The funds can be used to remit funds from abroad. The limit amount of up to One Million US dollars or equivalent can be repatriated to the country where the NRI resides. The value of the currency is also subjected to exchange rates of the currency at the time of transfer of funds
• The withdrawal from this account can be used to make local payments.
• The account may be opened under the categories of savings, current or fixed deposit.
• The interest that is earned on this account is not exempted from income tax.
• The account holder can also take a loan against this account, in the INR currency.

What are the questions you need to ask before sending money to India?

According to recent studies, India is the number one destination which receives a lot of remittance from other countries. This is mainly an achievement driven by millions of NRI’s who have settled abroad and yet have strong ties back home.

While it may seem like a simple procedure to select a money transfer service and send funds back home, there are important factors you need to consider. Given blow are some answers to frequently asked questions that will help provide you with some clarity:

Is the service reliable?

While it may seem like sending money to India may seem like an expensive affair, there are plenty of money sending options that is cheap while providing a fast delivery. One way to find out if this is true, is by checking out the reviews. Do the claims really hold true for what they claim? If not, you can always contact the customer service of that institute and get a better clarification.

Will my funds be delivered on time?

At times, you would want to send funds to a destination urgently. This could be to avoid an impending deadline, or any medical emergency that required a large amount of finances. In this case, normal delivery services may not be your ideal option. However, certain express services will send funds to your destination within a short period of time, for a higher price. However, you must ensure that your money transfer service stick to the delivery time claimed.

Is the exchange rate good for me?

The funds you will be earning may be in foreign currency. When you make a money transfer in foreign funds, it will be converted into the local INR value. When this occurs, the value of the INR per the foreign currency will be taken into consideration. Therefore, when you are sending money to India you will need to be aware of the current conversion value before you make a transfer. Most money transfer companies usually display their daily exchange rate on their website. All you need to ensure is that, it will match the official forex rate for the day.

Will the service delivery the funds to my home town?

Most of the money transfer services have now evolved to such a stage where they send funds either to your account or right to your doorstep. However, in certain cases and in certain states, most institutes do not extending this service. You can check with the list of delivery points for the services you have selected. Alternatively, you can always send it to the local post office or a corresponding agent, where the receiver can collect from, once they conform their identity.

While there are plenty more factors you can consider, it is important that you are completely aware of the services and its offering. Once you have made your choice, you can select the delivery institute you want and make the transaction.

What is the ideal foreign currency account you can opt for when returning home?

No doubt, when returning back to India after spending considerable time abroad, will require plenty of adjustments. If you have inculcated plenty of assets abroad, what do you do about it? What about the NRI accounts which you have created? What about the termed deposits you have invested abroad?

In addition to this, you will also need to take into consideration the change in your resident status. Once your NRI status changes to resident, which occurs when you return back, it can change your NRI accounts, investment and assets. You also need to take into consideration the FEMA (Foreign Exchange Management Act) and the Income Tax Act which is different for residents and NRI’s.

While this may be a lot to take in, you don’t have to do much. You only need to convert your current accounts into a Resident Foreign currency account( RFC ). Even your termed deposits will get converted into this account. Given below are all the details you will need to know about this account and how you can benefit from it.

What is a Resident Foreign Currency Account?
The RFC account is nothing but a foreign currency account, that can be maintained by a resident. This account is best used for NRI’s who are returning back home to India.

Who can open RFC account?
Individuals who hold a NRI status, for a continuous period of not less than a year, and have become a resident in India as per the FEMA conditions can open the RFC account.

How is the funds in the RFC account held?

The funds in the RFC account can be held in selected convertible foreign currency. It can also be held in different forms of savings, current and term deposits account.


What are the benefits of a RFC account?

As an account holder of the RFC account, you will have the following benefits:
• Funds in this account can be freely utilized for any bona fide remittance outside India as compared to other traditional channels.
• The funds, especially the balance is fully repatriable. In this case, the principal and the interest are fully repatriable.
• The funds that are repatriable can be made in foreign currency. This eradicates the risk of conversion rates. The currencies that are freely convertible in the foreign currencies of USD, GBP, Euro, AUD and CAD. However, this depends on the banking institute that you have applied for.
• The funds in the account can be freely remitted abroad or credited to the fresh NRE/FCNR account, if you regain your non – resident status.
What are the eligible credits to the RFC account?

The following credits are eligible to be deposited in the RFC account:

• Proceeds from the sale of eligible assets outside India
• Funds transferred from any other RFC or NRI accounts
• Remittance of funds from bank accounts that qualify as eligible assets outside India.
• Pensions or other similar monetary income from employers outside India
• Incomes such as divide, interest, profit and rent.
• Interest earned on RFC account.

What are the money transfer services available today?

Transferring funds by cash, check or bank draft may seem like the way of the old ages. These methods may seem like a less popular option today, especially when there are faster and more convenient means to transfer funds between accounts or even countries. However, it does not mean that they are still not viable options.

But each of these choices have different features and benefits, which work for different situations. So can you opt for the right one that will provide you with the means to transfer money and satisfy your needs? Here are a few money transfer services you can take into consideration:

Bank account

A bank account is one of the best money transfer services that any individual can opt for. It is also one of the many options that help you with any type of fund transfer you want, especially if it is one of the simplest ones. This is also the best option if you want to send funds from the same financial institution, especially at the lowest price possible. Additionally, several banks offer money transfer services, that allows you make transfers from one institution to another as long as you have the required bank account. You can even contact the bank for any queries or any assistance.

E-Transfers

Some financial institutions will allow you to make a money transfer online to another individual in the same way, you would pay a bill online. Through this service, you will need an account number and bank routing number. For international accounts, you will need a SWIFT or IBAN number. At the same time, you will also require the account holder’s name as it appears on their account. This can be a convenient mean to transfer funds, especially if you need to make regular or monthly transfers. It is also one of the cheapest form of money transfers in the market.

Western Union

The Western Union is a popular choice for many individuals who want to make a money transfer in the safest and secured way. It will provide you with a similar service that will allow you to transfer money to a different state, country or city. Through this service, a flat rate will be charged for the transfer you will need to make, based on the urgency, location and the amount of funds you are sharing. However, one of the major benefits of these services is that they tend to be both highly dependable and convenient.

Mobile Apps

With more and more individuals using smartphones and relying on apps to manage their daily lives, it comes as no surprise multiple financial apps have been created to facilitate the means to make money transfers. While plenty of banks have designed and created their own apps, other NBFC have also created these financial apps to make these transfers.