If you use your bank to wire money to India, you are almost certainly overpaying. The typical U.S. bank charges $25-45 per wire plus marks up the exchange rate by 2-3%. On $5,000, that costs your family approximately ₹14,000 more than Wise.
Over a year of monthly transfers, the difference adds up to roughly ₹57,000 — and that is a conservative estimate.
How banks make money on international wires
Banks charge you twice: once with a visible wire fee ($25-45), and again with an invisible exchange rate markup. The markup is the bigger cost, but most people never notice it because banks do not show you the mid-market rate for comparison.
For example, if the mid-market rate is 93.67, your bank might give you 91.30. That 2.5% difference on $5,000 means your family receives about ₹11,850 fewer rupees — before the wire fee is even added.
Side-by-side comparison on $5,000
| Wise | Bank wire | Difference | |
|---|---|---|---|
| Exchange rate | 93.67 (mid-market) | ~91.30 (2.5% markup) | 2.37 INR per dollar |
| Fee | ~$5.25 | ~$35 | $29.75 more |
| ₹ received | ~₹4,64,700 | ~₹4,50,400 | ₹14,300 less |
Annual impact
If you send $5,000 every month through your bank instead of Wise, the annual cost is approximately:
₹1,71,600 per year
That is the estimated cost of using a bank wire instead of Wise for $5,000/month over 12 months.
But is Wise safe?
Yes. Wise is regulated by FinCEN in the US, the FCA in the UK, and financial authorities in every country it operates in. It has over 16 million customers and moves more than $10 billion per month. It is publicly listed on the London Stock Exchange. Your money is safeguarded (held separately from Wise's own funds) and never lent out.
How to switch from bank wire to Wise
- Create a free Wise account at wise.com
- Add your Indian recipient's bank details (account number, IFSC code)
- Fund via ACH (linked U.S. bank account) — this is the cheapest payment method
- Money arrives in roughly 1 hour
The first transfer takes about 10 minutes to set up. Subsequent transfers take under 2 minutes.
The bottom line
There is no scenario where a U.S. bank wire to India is cheaper than Wise, Remitly, or Xoom. If you are currently using your bank for international transfers, switching to a dedicated provider will save your family thousands of rupees per year.