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$ Remittances from US to India
Representational photo: TOKYO, Oct. 31, 2014 (Xinhua) -- Haruhiko Kuroda, governor of the Bank of Japan (BOJ), attends a press conference at BOJ headquarters in Tokyo, Japan, Oct. 31, 2014. BOJ decided to buy Japanese government bonds from financial institutions so that their amount outstanding will increase at an annual pace of about 80 trillion yen (731.28 billion dollars). (Xinhua/Stringer)

India Ranks 3rd with $11 Bln in Money Transfers From US: Report

India has been ranked in the third top spot for remittances, receiving a total of $11.75 billion from friends, family and businesses in 2015, while Mexico was on top with $25.68 billion, followed by China with $16.23 billion in the second position, said a new study by personal finance comparison website finder.com.

Based on the World Bank data of remittances from 2010-2015, finder.com estimates $139.13 billion was transferred out of America in 2016 and 145.56 billion will be the projected amount of transfers in 2017. The report adds that merely 4% of those who transferred money are happy with the value of their money transfer provider.

In its survey of 2,005 American residents in collaboration with global research provider Pureprofile in November 2016, Finder.com said it has found 80% of people who transfer money overseas feel ripped off. Yet 25% of these people said they do nothing about it and always go back to the same provider.

Instead, the study suggests that those sending money to their home country or elsewhere could save significantly by comparing money transfer providers as some providers charge no transfer fee while others charge $5 or even $10 per transfer.

Country

Total value transferred by Americans in 2015

Mexico

$25.68 billion

China

$16.23 billion

India

$11.74 billion

Philippines

$9.65 billion

Vietnam

$7.32 billion

The survey said 34% of Americans transfer money overseas and out of them, only 4% think that their provider is great value, 80% feel like they are being ripped off, which means 2 in 5 (42%) feel negative about it.

Those aged 18-34, called Millennials feel the most ripped off when transferring money overseas (81%), followed by Baby Boomers (80%) then Gen X (79%). However, among those who feel ripped off, 25% said they do nothing about it and always go back to the same provider or bank. But 30% said they sometimes compare providers before transferring.  Though more women (78%) feel ripped off compared to men (65%), more women said they use the same provider (29% vs 19%).

According to World Bank remittance data from 2010-2015, the average annual growth rate of money being transferred out of America each year since 2010-2015 is 4% and an estimated $139.13 billion was transferred last year, which Finder.com says may reach $143.56 billion in 2017.

Year

Total annual remittances from USA

2017

*$143.56 billion

2016

*$139.13 billion

2015

$134.96 billion

2014

$129.96 billion

2013

$123.47 billion

2012

$123.27 billion

2011

$120.18 billion

2010

$109.85 billion

Source: finder.com analysis of The World Bank Bilateral Remittance Matrix data

*Values are forecasts based on average 4% year on year growth rate from 2010-2015

The findings also show that American immigrants transferred over $134.96 billion to out of the country in 2015, making up 23% of the world’s international money transfers ($580.59 billion), which is the highest amount of money transferred out of America in one year. The amount of money transferred out of America has increased by 19% ($25.11 billion) since 2010, from $109.84 billion in 2010 to $134.96 billion in 2015, it said.

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