Any idea how much they are? I know that home loan rates have increased. I am guessing FD rates increase also.

Almost all the banks have their websites and interest rates are posted there. You can use google to find their websites.

For ICICI bank India, for resident indians this is the link http://www.icicibank.com/pfsuser/interestrates/interestrates.htm

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Current rates are from around 7% to 10.5%.

Rgds.

Rajan.

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Yes the bank rates are currently at that range. But can we invest our CDN$ there and get interest here?? As our general fixed income securities here like the GICs get us not even a decent 4%.

Is anyone getting money transferred to Canada having invested their capital in India??

Let me know, please.

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For a NRI, NRO accounts (money maintained in INR) are the only accounts that can possibly offer these rates. The principal in NRO accounts is non-repatriable; the interest can be repatriated.

The bank will withold 30% of the interest amount on the NRO account. You will have to file an Indian Income tax return to get a refund (if you have no other income in India). It can take as much as a couple of years to get an IT refund in India. On top of that, the interest is considered as a part of the world income and is taxed at the marginal tax rate in Canada.

Have to weigh in the cost of doing all this versus the money you would expect to gain.

Thx folks. Started digging into the bank rates. Some banks are offering as much as 10.5% for 390 days (abt 13 months). All in rupees.

Please correct me here. I am just making a rough calc. May not be right:

Rs. 10 lakhs for 13 months at 10.5%. Less 30% (?) withholding from bank. Comes to Rs. 73,500
1 cdn=39 rupess.
Comes to abt $1,800

Rs. 10 lakhs=$25,640 at 4%. Comes to $1,025 in interest. Must be declared as income when filing taxes.

Hope I am not comparing apples with other fruits.

DIO

Technically - you are liable for tax to the Canada on this income, depending on your marginal tax rate. 30-43% is pretty standard for canadian incomes from $60K-$100K

That gives you about $1200 after all taxes. Of course, you can claim a refund from India and possibly, you will get a significant chunk of the witheld taxes back albeit after filing a return (need CA in India) and waiting for at least 2 years.

Also, you are exposed to the exchange rate risk. Say after 1 year, you want to withdraw the money and the CAD is now stronger => you get less CAD for the same INR. CAD buying rates are worse than the selling rates; have to factor that in the calculations.

However, if the INR is stronger at that time, you get even more value for your INR in terms of CAD.