Posted on: 02-12-12 12:49:42
All,
Indian banks are giving around 4.5% rates on CAD FCNR Deposits, it is difficut to get this type of rates in CAnadian banks. Has anybody done this FCNR deposits. They are not taxable in India but whe have to pay taxes in our country of residence.
All suggestions are welcome.
AS
Quote:
Originally posted by agrasaand
All,
Indian banks are giving around 4.5% rates on CAD FCNR Deposits, it is difficut to get this type of rates in CAnadian banks. Has anybody done this FCNR deposits. They are not taxable in India but whe have to pay taxes in our country of residence.
All suggestions are welcome.
AS
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HDFC says why go to somebody else.:
http://hdfcbanknriservices.co.in/fixeddeposit/index.asp?camp=GOOG_Fixed_Deposit_US_Content_Banner&keyw=sbi%20nre%20fixed%20deposit%20rates
At the bottom of this page you will see FIXED DEPOSITS BY INSTITUTIONS.. Click on the same..
http://www.ratekhoj.com/fixed-deposits/fixed-deposit-rates/index.php
This was the going rate in and around the Month of AUGUST 2012. What it is now? You will have to make a call or write to them and obtain the current rates.
http://indianprices.info/which-bank-in-india-2012-offering-best-fixed-deposit-interest-rates-fd-comparison/
Here is the rates for the Post Office Savings Account.
http://www.indiapost.gov.in/posb.aspx
Most of us have aging Parents and relatives there who are normally in need of help from time to time. They also can claim Rupees TWO LAKS as personal exemption in their annual Income Tax Returns. (Rs.2,00,000/-). This is per person. So, if you have 40 Lakhs of Rupees available to invest and the Parents can avail this benefit, then you can do the math and also juggle the funds to take benefit of the interest deductions. That is a hefty savings and a GREAT help to them too.
Also currently the Indian Rupee is at a very low point and it is Rs.54.5 per Canadian Dollar. If and when the Indian Rupee improves in its value, it will accrue a benefit to you in your returns. Because, when you want to repatriate the same, you will get a better return in your investment. So be guided by this fact.
As an example if the Indian Rupee appreciates and gains strength and goes to 44.5 Rupees per Canadian Dollar, your 40 Lakhs invested will be worth 44.4 Lakhs, plus you would have gained interest on it when it is left in Fixed deposits with your Parents. This way both of you would benefit by the Fixed Deposit. You will have to see an accountant to set this up.
Can you get the Investment back. Certainly. Talk to him about it too.
FH.
FCNR accounts have money in the origin country currency, so the Rupees conversion rate has no meaning..
I got 9.5% p.a in IDBI Bank for NRE and NRO deposit for one year. The only condition is if you break the FDR before maturity then, no interest.
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We came to enjoy; we are being enjoyed. We came to rule; we are being ruled. We came to work; we are being worked. All the time, we find that. And this comes into every detail of our life.
i am talking about FCNR which is in canadian dollars not NRE/NRO in Indian Rupees.
FCNR Accounts. Please see here.
http://www.charteredclub.com/what-is-fcnr-account-fixed-deposits-for-nri%E2%80%99s-in-india/
It is for those who cannot take the risk of currency fluctuations. They might not permit you to hold it outside of a FIXED DEPOSIT for longer periods. Ask them about it. Some have a minimum amount for such investments. Once again look out for the penalties mentioned in their application for early withdrawals and also about NO PENALTIES if you are renewing or re-investing with the same institution for a higher rate, even though you withdraw it a little early for the renewal process.
The interest rates are a lot higher than what we see currently here, in the local markets. Also they are insured and guaranteed upto a sum of Rs.1,00,000 .
http://www.rbi.org.in/scripts/FAQView.aspx?Id=64
FH
Just as a FYI, Canadian Direct Financial offers 3% in TFSA (if you still have room for contribution) which you can withdraw at any time. Security of your contribution funds is guaranteed as well as your rate of return.
