When I was working in the US, I used to dread sending money home. Every month, I’d spend 20 minutes comparing apps, calculating exchange rates, and worrying if my parents would get the money on time.
Over the years, I’ve tried pretty much every service out there – bank wires, Western Union, Wise, Xoom, and yes, Remitly.
So when community members ask me, “Is Remitly any good?” – I have some real thoughts.
The short answer? Remitly is a solid choice for most NRIs sending money to India, especially if speed and convenience matter to you. But it’s not always the cheapest option, and the “great rates” they advertise come with some caveats.
Let me break it all down.
What Is Remitly?
Remitly is a digital money transfer service founded in 2011 in Seattle, specifically designed to help immigrants send money back home. They’ve grown into one of the largest independent remittance companies, serving over 5 million customers who collectively send more than $30 billion annually.
For the US-India corridor, Remitly has become one of the go-to options, and for good reason – they’ve built solid infrastructure with partnerships across 130+ Indian banks and over 100,000 cash pickup locations.
How Remitly Works
The process is straightforward:
- Download the Remitly app or visit their website
- Create an account with your email
- Enter how much you want to send
- Choose your delivery method (bank deposit, UPI, or cash pickup)
- Enter recipient details
- Pay via bank account, debit card, or credit card
- Track your transfer in real-time
The whole thing takes about 5 minutes once you’re set up.
Remitly’s Two Transfer Options: Express vs Economy
This is where Remitly gets interesting – and where many NRIs get confused.
Express Transfers:
- Money arrives within minutes to hours
- Higher exchange rate markup (meaning you get fewer rupees)
- Best for urgent transfers
Economy Transfers:
- Takes 3-5 business days
- Better exchange rate (more rupees for your dollar)
- Best for non-urgent monthly remittances
Here’s the thing most people miss: the difference in exchange rates between Express and Economy can be significant. On a $1,000 transfer, you might get Rs. 500-1,000 more with Economy. If you’re not in a rush, always choose Economy.
Pro Tip: I schedule my monthly transfers to my parents a week before they actually need the money. This way, I always use Economy and save on every transfer.
The Real Cost of Using Remitly
Remitly’s pricing has two components, and understanding both is crucial:
1. Transaction Fee
| Transfer Amount | Fee |
|---|---|
| Under $1,000 | $3.99 |
| $1,000 and above | $0 (Free) |
| First transfer | $0 (Promotional) |
The fee structure is simple – send $1,000 or more, and there’s no transaction fee. This is competitive in the industry.
2. Exchange Rate Markup
This is where Remitly makes most of its money, and it’s the part many people overlook.
Remitly doesn’t use the “mid-market rate” (the real exchange rate you see on Google). Instead, they add a markup of roughly 0.4% to 1.4% depending on whether you choose Economy or Express.
Let me show you what this means in real numbers:
Example: Sending $1,000 to India
| Service | Exchange Rate | Recipient Gets | Difference |
|---|---|---|---|
| Mid-market rate (Google) | 84.50 | Rs. 84,500 | – |
| Remitly Economy | ~84.15 | Rs. 84,150 | -Rs. 350 |
| Remitly Express | ~83.80 | Rs. 83,800 | -Rs. 700 |
That Rs. 350-700 difference? That’s the hidden cost built into the exchange rate. Over a year of monthly transfers, it adds up.
The “First Transfer” Trap
Remitly heavily advertises their “special rate for new customers.” And it’s true – your first transfer (up to $10,000) gets a promotional exchange rate that’s genuinely competitive.
But here’s what the fine print says: this only applies to your first transfer. Every transfer after that uses their regular (less favorable) rates. Many people sign up expecting those rates forever and get disappointed.
Transfer Limits
| Limit Type | Amount |
|---|---|
| Per transfer | Up to $100,000 |
| 24-hour limit | $30,000 |
| Monthly limit | Higher limits available with verification |
For most family remittances, these limits are more than adequate. If you’re sending larger amounts (like for property purchases in India), you might need to verify additional documentation.
Delivery Options In India
This is one area where Remitly genuinely shines:
Bank Deposit
Transfer directly to any of 130+ Indian banks, including:
- State Bank of India
- HDFC Bank
- ICICI Bank
- Axis Bank
- Punjab National Bank
- And most regional banks
The money typically lands within minutes (Express) or 3-5 days (Economy).
UPI Transfer
This is a game-changer. You can send money directly to someone’s UPI ID – meaning they don’t even need to share bank details. Just their phone number linked to UPI works.
Cash Pickup
Over 100,000 locations across India where recipients can collect cash. This is particularly useful if you’re sending money to elderly parents who might not be comfortable with digital banking.
What I Like About Remitly
1. The App Is Actually Good
I’ve used clunky remittance apps that feel like they were built in 2005. Remitly’s app is modern, intuitive, and doesn’t crash. You can track your transfer in real-time and get notifications at every step.
2. Delivery Guarantee
Remitly promises on-time delivery or they refund your fees. In my experience, they’ve delivered on this – I’ve never had a transfer delayed without explanation.
3. Excellent India Coverage
Whether your family banks with SBI in Mumbai or a small cooperative bank in rural Karnataka, Remitly probably supports it. Their network is genuinely comprehensive.
4. 24/7 Customer Support
When things go wrong (and they occasionally do with any service), you can reach someone. Their support team speaks multiple languages and is available around the clock.
5. No Recipient Fees
Your family in India receives exactly what Remitly quotes – no deductions on their end.
What I Don’t Like About Remitly
1. Misleading “Great Rates” Marketing
The promotional rate is genuinely good. The regular rate? It’s competitive but not the best. The way they market this can feel a bit bait-and-switch.
2. Express vs Economy Confusion
The difference in rates between these two options isn’t clearly explained upfront. Many people choose Express thinking it’s just faster, not realizing they’re paying significantly more.
3. Credit Card Fees
If you pay with a credit card, you’ll face additional fees – both from Remitly and from your credit card issuer (who often treats it as a cash advance). Stick to bank transfers or debit cards.
4. Account Suspension Issues
I’ve seen complaints in our community about accounts being suddenly suspended for “security reasons” with vague explanations. While this is common across all money transfer services (regulatory requirements), the lack of transparency can be frustrating.
How Does Remitly Compare To Alternatives?
Remitly vs Wise (TransferWise)
| Factor | Remitly | Wise |
|---|---|---|
| Exchange Rate | 0.4-1.4% markup | Mid-market rate |
| Fees | $0-3.99 | ~0.5-1% of transfer |
| Speed | Minutes (Express) to 5 days (Economy) | Usually 1-2 days |
| Cash Pickup | Yes | No |
| Best For | Quick transfers, cash pickup | Getting the best rate |
My Take: If maximizing every rupee matters most, Wise typically beats Remitly on exchange rates. But if you need speed or cash pickup options, Remitly wins.
Remitly vs Xoom (PayPal)
| Factor | Remitly | Xoom |
|---|---|---|
| Exchange Rate | Slightly better | Slightly worse |
| Fees | $0-3.99 | $0-4.99 |
| PayPal Integration | No | Yes |
| User Reviews | 4.6/5 Trustpilot | 1.6/5 Trustpilot |
My Take: Remitly generally offers better rates and has significantly better customer reviews than Xoom. Unless you specifically need PayPal integration, Remitly is the better choice.
Remitly vs Bank Wire Transfer
| Factor | Remitly | Bank Wire |
|---|---|---|
| Exchange Rate | 0.4-1.4% markup | 2-4% markup |
| Fees | $0-3.99 | $25-50 |
| Speed | Minutes to 5 days | 3-5 business days |
| Convenience | High | Low |
My Take: Bank wires are almost never worth it unless you’re sending very large amounts through your NRI bank account and your bank offers special rates.
When Should You Use Remitly?
Remitly is ideal if:
- You send $1,000+ monthly (free transfers)
- You need money to reach India quickly
- Your recipient prefers cash pickup
- You want UPI transfers
- Convenience and reliability matter more than squeezing out every rupee
Consider alternatives if:
- You’re sending small amounts frequently (fees add up)
- Getting the absolute best exchange rate is your priority (try Wise)
- You’re sending very large amounts ($50,000+) for investments or property
Tips For Getting The Most Out Of Remitly
- Always compare before sending: Use sites like CompareRemit or check Google for the current mid-market rate. Know what you’re giving up.
- Use Economy for non-urgent transfers: The rate difference is real. Plan ahead.
- Send $1,000+ when possible: Batch smaller amounts to hit the free transfer threshold.
- Pay with bank account or debit card: Avoid credit cards entirely.
- Set up rate alerts: Remitly lets you get notified when rates hit a certain level. Use this feature.
- Keep your account verified: Upload your ID and documents proactively so large transfers don’t get delayed.
Pro Tip: I personally use multiple services depending on urgency and amount. Remitly for quick transfers, Wise for larger amounts where I want the best rate. There’s no rule saying you can only use one service.
Is Remitly Safe?
Yes. Remitly is:
- Licensed and regulated in the US (FinCEN) and all countries where it operates
- Uses bank-level encryption
- Partners only with vetted financial institutions
- Has been operating since 2011 with millions of customers
I’ve used them for years without any security issues. That said, always use strong passwords and enable two-factor authentication.
Frequently Asked Questions
Q: Is there a Remitly app?
Yes, available on both iOS and Android. It’s actually quite well-designed.
Q: How long does Remitly take to transfer money to India?
Express transfers arrive within minutes to hours. Economy transfers take 3-5 business days.
Q: Does Remitly charge hidden fees?
The transaction fees are transparent. However, the exchange rate markup isn’t always obvious – that’s where they make their profit.
Q: Can I cancel a Remitly transfer?
You can cancel before the transfer is processed, but once it’s sent, cancellation depends on whether the recipient has collected it.
Q: What’s the maximum I can send through Remitly to India?
Up to $100,000 per transfer, with a $30,000 24-hour limit. Higher limits are available with additional verification.
Q: Is Remitly better than Western Union?
For India transfers, generally yes – Remitly offers better rates, lower fees, and a more modern experience.
The Bottom Line
Remitly is a reliable, convenient option for sending money to India. The app works well, transfers are fast and trackable, and their India coverage is excellent.
Is it the absolute cheapest option? Not always. Wise typically offers better exchange rates. But when you factor in speed, convenience, delivery options, and customer service, Remitly offers solid overall value.
For the typical NRI sending $1,000-2,000 monthly to family, Remitly does the job well. Just remember to:
- Use Economy for non-urgent transfers
- Don’t expect the first-transfer promotional rate to last
- Compare rates occasionally to make sure you’re getting a fair deal
At the end of the day, the best money transfer service is the one that fits your specific needs. For many NRIs, that’s Remitly.
Join Our Community
Discussing money transfer options? Our WhatsApp community at backtoindia.com/groups has thousands of NRIs sharing real-time rate comparisons and tips. It’s free, volunteer-run, and genuinely helpful.
Have questions about transferring money to India? Drop them in the community – someone’s probably figured it out already.
– Mani
Disclaimer: This review is based on personal experience and publicly available information as of 2024. Exchange rates, fees, and features can change. Always verify current rates on Remitly’s website before making a transfer. BacktoIndia.com may receive compensation if you sign up through certain links, but this doesn’t influence our honest assessment.
Leave a Reply