5 Things No One Tells You About Sending Money To USA From Abroad America has the largest and most technologically powerful economy in the world. Hence, a majority of international businesses, from sole traders to large corporations, do business with the country.
With 43 out of 100 universities in America, it's no wonder that America sees a large number of students from around the world flocking to the country. The average university tuition fee per year is 10,000 USD. On an average, an expat student pays 3,000 USD per month in health insurance that does not cover dental and eye insurance. Therefore, it is imperative to know the best ways to transfer money to a US bank account.
In this blog, we will take you through key points that you need to know in order to send money to a bank account in the US.
1Why To State Your Purpose When Sending Money To America
Whether you are sending money to your friends or family who live in America or are paying for a holiday overseas, you must always state your purpose for remitting money to the US. It yields you numerous benefits. All the benefits of foreign remittances are then applied to this transaction (for example, tax-free status). As a result, the bank will put your application under the foreign currency remittances which is what they report to the central bank. If you do not specify the reasons, they will put your application under commercial inward and you will be liable for service taxes.
2. You Have To Pay Taxes On The Money You Send To America
If someone plans to remit money to America and the amount exceeds by 10,000 dollars, you have to comply with the American laws and pay some taxes in order to protect the interests of their government. According to the law, banks have to report all transactions that exceed 10,000 dollars to keep a check on suspicious activities. American residents are taxed on any foreign income. Non-residents are taxed only on income originating in America. Double tax treaties are in place to avoid double taxation.
3.You Might Be Paying A Premium For Remitting Money To The US
When remitting money to the US, you should look for alternatives available on the market to fetch the best deal. When you compare the transaction fees of some of the well-known remittance portals that guarantee international money transfers to America, you will find out that these websites charge you exorbitantly even for small transactions. They will usually transfer your money in 1-2 working days, but in exchange for a whopping transaction fee or other charges, depending on the country you want to remit the money to. So, choose your service provider wisely.
4. You Can Send Money Directly To A Bank Account In The US
Yes, that's possible. Online money transfer portals such as InstaRem typically take one or two business days for international transfers in certain corridors, while others may take longer depending on the banking system of the destination country. If you are remitting money to the US via InstaReM, you have the advantage of transferring your funds at Live FX rates. In case of overseas funds transfer, all you need to do is follow their 3-step procedure and the rest will be taken care of by them. Therefore, it is recommended to use InstaRem if you want to send money to the US at best rates.
5. There Is No Limit Threshold On The Money That Can Be Sent To The US
There is no restriction on the money going in and out of the US. However, each district has specific regulations, and each foreign exchange company needs to be verified in a particular district or state. The US is divided into 12 territories or districts, each with its own Federal Reserve Bank. The Board of Governors of the Federal Reserve System oversees the financial system at a national level.
At InstaRem, you can transfer money in one or two business days at a great currency exchange rate. So, visit us and make online remittance to the US for a hassle-free process.