Hello.
I’m George, CEO of ExTravelMoney.
Over my 20+ years in the banking and forex industry, I’ve seen countless people lose money to high fees and bad exchange rates when sending money abroad. But, it doesn’t have to be this way.
Let me share 6 practical and straightforward tips to help you save on your next international transfer.
1. Compare Exchange Rates of Different Services
“Never settle for the first rate you see”.
Exchange rates can vary significantly between banks and money transfer services. Even a small difference can help you save a lot on your international transfer.
| Rates |  |  |  Bank 1 |  Bank 2 |  Bank 3 |
| 1 USD* | 83.96 | 84.56 + 60p | 85.43 + ₹1.47 | 85.54 + ₹1.58 | 85.84 + ₹1.88 |
| 20,000 USD** | ₹ 16,79,200 | ₹ 16,91,200 + ₹12,000 | ₹ 17,08,600 + ₹29,400 | ₹ 17,10,800 + ₹31,600 | ₹ 17,16,800 + ₹37,600 |
** Average transfer amount of a student going to study in the US
On average a student saves ~₹ 20,500 on transferring USD 20,000 via ExTravelMoney.com compared to transferring via a typical bank in India.
Our platform allows you to compare rates from multiple banks and money changers, offering wholesale rates that are better than the rates you’d get directly from a bank.
2. Understand and Avoid Hidden Fees
In India, fees associated with international money transfers can be a bit complex.
It’s not just the upfront fees you need to worry about; hidden costs, such as the intermediary bank charges and TCS can add up.
| Charges | Amount |
| 1. Exchange Rate | 1-3% Markup (Ex: 80 paise to ₹2.5 extra per USD transferred) |
| 2. Intermediary / Beneficiary Bank Charge Intermediary Bank Charge Fully Explained | USD 15-30 Equivalent (₹1000-2500) |
| 3. Service Fee | ₹299 – 550 |
| 4. GST | GST Rates on Forex Transactions in India 1. < ₹1 Lakh: GST ₹45 – 180 2. Between ₹1 – 10 Lakh: GST ₹180 – 990 3. > ₹10 Lakh: GST ₹990 – 60,000 |
| 5. TCS (Tax Collected at Source) | 1. Below ₹7 Lakh, TCS – 0% or 5%* 2. Above ₹7 Lakh, TCS – 0%, 0.5% or 20%** TCS on Money Transfer Abroad from India – Simple Guide |
** depending on the purpose of transfer & source of funds
Make sure you understand all the fees involved. If you’re not sure, ask.
At ExTravelMoney, we’re transparent about all our fees—no surprises.
Also Read: How Much Money Can You Send Abroad from India Without Tax?
3. Save on TCS
What is TCS?
TCS on money transfer abroad is a tax collected by the Indian government. The tax is collected upfront by the bank or money transfer service at the time of the transaction. This can be claimed back or adjusted against your tax liability when filing ITR.
TCS Rates on Outward Remittance
| Purpose of Remittance | Below ₹7 lakh | Above ₹7 lakh |
|---|---|---|
| Overseas Education – University/College fee payment – Living expenses of a student abroad – To GIC/Blocked account of student | 0% | 0.5%* or 5% |
| Medical Treatment Abroad | 0% | 5% |
| International Tour Packages | Flat 5% | Flat 20% |
| International Tour-Related Payments | Flat 5% | Flat 20% |
| Maintenance of close relatives abroad | 0% | 20% |
| Gift remittance | 0% | 20% |
| Visa / Emigration / Consultancy fee | 0% | 20% |
| Investment Remittance | 0% | 20% |
* if source of funds is education loan
Also Read: 10 Valid Purposes for Indians to Send Money Abroad
How to Save on TCS?
- Keep Transfers Below ₹7 Lakhs: If you keep your remittance under ₹7 lakhs, you avoid TCS entirely.
- Split Large Transfers: If you need to send more than ₹7 lakhs, consider splitting the amount into two transactions from different senders to stay under the threshold, thus avoiding TCS.
- Use Educational Loans for Student Transfers: Transfers funded by educational loans attract a lower TCS rate of 0.5%, compared to 5% if using personal funds.
- Use International Credit Cards: Spending through international credit cards does not currently attract TCS, making it a smart option for managing expenses abroad.
Example: ₹14 Lakh Transfer Abroad
Let’s say you want to send ₹14 lakh to your son/daughter abroad.
If you send it all at once, you’ll be hit with a 20% TCS on the amount over ₹7 lakhs. That’s ₹2,60,000 extra you’ve to cough upfront along with the transfer amount. It’ll be tied up until you file your income tax return and claim it back or adjust it against your tax liability.
Here’s a smarter way: break the transfer into two ₹7 lakh transactions. One transfer from the father’s and one from the mother’s account. No TCS to worry about—meaning you don’t have to arrange extra ₹2,60,000 for TCS. Sure, you’ll pay between ₹1,500-3,000 extra for the 2nd transaction in the form of intermediary/beneficiary bank charges and service fees. But that’s a small price compared to the cash you save. Even if you keep that ₹2,60,000 you save in a bank at a nominal 7% interest, you’ll make ₹9,800 in a year. That’s money in your pocket, not the taxman’s.
Think about it.
Our team at ExTravelMoney will guide you through TCS complexities, making sure your transfers are easy and you get the most out of your money.
4. Use Online Transfer Services for Better Rates & Lower Fees
Traditional banks often charge higher service fees and exchange rates than online money transfer services. This is due to a variety of factors.
Here is a comparison table to help you understand better what I mean;
| Comparison Points | Traditional Banks | Online Transfer Services |
| Overhead Expenses | High – Maintaining physical branches – Covering infrastructure expenses | Low – No physical branches – Low operational expenses |
| Exploiting Trust Factor | Yes | No |
| Safety & Security | Yes | Yes |
- Overhead Expenses: Banks have higher overheads and pass these costs to customers through high fees & exchange rate margins. However, Online Transfer Services have very low operational expenses compared to a bank. Thus, they are able to pass those savings on to customers with low exchange rates and service charges.
- Exploiting Trust Factor – Banks know they have a strong trust factor among people—they assume you won’t bother looking for a better deal elsewhere. That’s why they keep their exchange rates high, and charge hefty service fees for international transfers. Online platforms also send money abroad through banks and thus are equally trustworthy. However, they give a much better rate and lower fees than what a walk-in bank customer would get. This is because they give bulk orders to banks and are able to negotiate better rates with them.
- Safety & Security – Both Banks and Online Transfer Services are equally safe. Online transfer services use the same banking networks, ensuring the same level of safety and security as a direct bank transaction. Your money is just as secure, and you also get a better deal.
Explore your options, and you’ll find better rates and lower fees with platforms like ours.
5. Negotiate with Your Bank for Better Rates
If you prefer to use your bank for international transfers, it’s worth negotiating for a better exchange rate. Banks often have room to negotiate, particularly for customers doing high-value transactions. So, don’t hesitate to ask for a better rate on your money transfer abroad.
6. Watch Out for Special Offers and Promotions
Many money transfer services offer special promotions, discounts, or cashback deals to attract new customers or retain existing ones.
Taking advantage of these promotions can help reduce costs significantly. Always keep an eye out for such offers.
ExTravelMoney.com - Offers
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Get up to 50 CAD bonus on GIC account opening and ₹3000 Flat OFF off your GIC money transfer via ExTravelMoney.com
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By following the tips for your next international money transfer, you can significantly reduce costs.
If you’re looking for a secure, cost-effective, and fast way to send money abroad, ExTravelMoney.com is your best choice.
“Keep your hard-earned money where it belongs—in your pocket”
Signing Off,
George Zachariah
CEO, ExTravelMoney.com
Also Read: 8 Mistakes To Avoid When Transferring Money From India
George Zachariah, with over 20 years of experience in banking and foreign exchange, is the CEO of ExTravelMoney.com. Known as a thought leader in the industry, George has shaped ExTravelMoney.com to become a key player in the forex market.