I am Indian, permanent resident of the US.
Years ago, I had loaned some money to my father in India and he now wants to pay it back to me. The amount is worth $300,000 and I am thinking of the best way to get the money back, in regards to transfer fee and exchange rate.
Because it is a big chunk of money, I guess flat transfer fee would be definitely better than percentage-based fee. I am also thinking of exchange rate, so thought international banks (such as citibank) would be a better bank to use than non-international ones. Is it true that my father and I get better exchange rate if he uses citibank than his local bank and my local bank?
If using citibank, my father and I need to create a new account but if that is the best option, it is not a big deal. However, since I have BoA account and my father uses local Indian banks, if using citibank is not considerably better than others, I would not create new account in citibank. Considering the situation, I want to hear from you with more experiences.
Also, I would like to know which is the better option between two following options;
1. having my father send me money in USD in India and I get USD here. In that case, my father would have to pay exchange fees, I think.
2. having my father send me money in INR in India and I exchange INR to USD in the US. In this case, exchange fees would be on me, I think.
I would like to know which option will reduce the total transfer fee (neither my father nor I would mind to pay the fees. We are thinking of reducing the total cost.)