Sending Money from India to Singapore? Here’s What Every BookMyForex Customer Should Know!
Understanding Wire Transfers
A wire transfer is an electronic method to swiftly move funds between bank accounts, both domestically and internationally. The sender provides the recipient's details, including their name, bank account number, and the receiving bank's information. The sender's bank sends the payment instructions to the recipient's bank through a secure network, such as SWIFT in the case of international wire transfer. The recipient's bank receives the funds and credits them to the recipient's account. This process can take a few hours to several days, depending on the banks and countries involved.
For India-Singapore transfers, international wire transfer is a reliable way to ensure your money reaches the recipient securely. However, it’s important to compare fees, exchange rates, and processing times before choosing the transfer method. While traditional banks remain a popular choice, they often come with high fees of up to Rs. 2000, slow processing times, and less-than-par exchange rates. For those looking for a more cost-effective solution, platforms like BookMyForex offer guaranteed lowest rates and zero transfer fees, making them a great alternative to traditional banks.
Why Indians Transfer Money to Singapore
Indians transfer money to Singapore for a variety of reasons. Here are some of the most common purposes:
1. Education: Singapore is a dream destination for many Indian students. With top-notch universities like NUS and NTU, it’s no surprise that parents back home are regularly sending money to cover tuition fees, rent, and living expenses. After all, good education is a priority for most Indian families.
2. Family Support: A lot of Indians have family members living in Singapore, and sending money to help out is just part of staying connected. Whether it’s for monthly expenses, or even something as simple as sending love during a festival, these transfers are all about taking care of loved ones.
3. Medical Treatment: Singapore is known for its world-class healthcare, and many Indians go there for specialized treatments. Whether it’s surgery or a consultation with a top doctor, transferring money to cover medical bills is a common reason for these transfers.
4. Business and Investments: Singapore’s real estate market is quite attractive. Many Indians buy property there, whether it’s for personal use or as an investment. Money transfers are often used to pay for property purchases and for other business investments.
5. Employment and Relocation: Singapore is a hotspot for professionals, and a lot of Indians move there for work. When you’re relocating, there are always costs like housing deposits, setting up utilities, or just getting settled in a new country. That’s where these money transfers come in handy.
Documents Required for International Money Transfers to Singapore
If you’re planning to send money to Singapore, you’ll need to have a few documents ready to ensure the process goes smoothly. Don’t worry, it’s not as complicated as it sounds. Here’s a quick brief of what you’ll typically need:
—PAN Card
—Remitter Photo Cum Address Proof
—Purpose Based Document (Admission letter from university in case of education, proof of relationship in case of family support, etc)
For a detailed list of documents based on the purpose of your transfer, visit here
Factors to Consider When Transferring Money to Singapore
1. Exchange Rates: Exchange rates are one of the most critical factors when transferring money internationally. The rate determines how much your Indian currency will convert into Singapore dollars (SGD). Banks and money transfer services often add a 2-3% markup to the mid-market exchange rate, which is the rate you see on Google. This markup can vary between different providers. Platforms like BookMyForex provides rates closer to the mid-market rate as well as lowest rate guarantee. Also, exchange rates fluctuate due to market conditions, but with BookMyForex, you can also lock-in your desired rate using our Book Now and Pay Later feature.
2. Transfer Fees: Let’s talk about fees as they can significantly impact the total cost of your transaction. Banks usually charge up to Rs. 2000 as transfer fees for money transfers abroad, and some other popular platform charge percentage-based fees, but don’t be fooled as they might charge you as high as Rs. 8000 based on the transfer amount. Online platforms like BookMyForex tend to be cheaper and more transparent and offer zero transfer fees. Simply use the promo code "ZEROBANKFEE" when placing your order through BookMyForex.
3. Intermediary and Recipient Bank Charges: When transferring money to Singapore, your transfer might pass through one or more intermediary banks before it reaches the recipient’s account. These banks may deduct fees called intermediary bank fees. Besides this, the recipient’s bank could also charge a fee to process the incoming funds. Choose a platform that displays all costs upfront to avoid unpleasant surprises. BookMyForex shows you the exact amount your recipient will receive, ensuring transparency and no hidden charges.
4. Transfer Speed: Speed matters, especially if the money is needed urgently. Transfers via banks can take a few days, sometimes up to five business days. If you’re in a hurry, online services like BookMyForex transfer money to Singapore within 12-48 business hours. For urgent transfers such as for education purpose, BookMyForex offers same-day transfers to Singapore.
5. Security and Compliance: Security is critical when transferring money overseas. Make sure the platform you choose uses advanced encryption and secure payment gateways to protect your financial and personal information. BookMyForex applies document watermarking and uses secure payment gateways, ensuring your data remains safe. The platform also follows all regulations set by the Reserve Bank of India (RBI) and complies fully with the Foreign Exchange Management Act (FEMA).
6. Customer Support: Things don’t always go as planned, so good customer support is a must. If there’s a delay, an error, or a technical glitch, you’ll want someone who can help you fix it quickly. Look for a provider that offers customer support and multiple ways to contact them like phone, email, or live chat. BookMyForex offers on-call and online customer support, so transferring money to Singapore doesn’t have to be stressful.
7. Tax Collected at Source (TCS): No matter the platform you use, TCS (Tax Collected at Source) applies to your foreign remittances. For education and medical expenses exceeding INR 7 lakh, a 5% TCS is applicable. For other remittances exceeding INR 7 lakh in a financial year, a 20% TCS applies. Transfers below INR 7 lakh in a financial year are exempt from TCS. The good news is that you can claim the TCS amount as a tax credit during your income tax return filing.
