Do folks (specially Indians) in the US save large amounts of cash (approx. $200k) in India to get a good interest rate? If yes, how do they transfer this money back to the US when needed (e.g. to buy real estate)? What are tax implications? This question is related to continuos interest rate cuts by US Fed - https://www.bbc.com/news/business-49746350
Why not just get a cd
Indian Rupee devaluation makes the conversion back to USD not worthwhile and if devaluation is higher than you may end up losing money in USD, so be careful. Hence I’ve never transferred money to India except for small gifts, or money I need when I visit.
There’s no free lunch in interest rate arbitrage between countries: https://www.investopedia.com/terms/i/interestrateparity.asp
BTW, this is true for long term and not for short term gains. The reasons why foreign holdings at higher interest rate are not worth for short term are - transaction costs, conversion rate disparity, tax mishaps, and high volume red flag by IRA.
I transferred money to india at usd at 52Rs, thinking i got a great deal, considering it was 40 few yrs ago. Later whn i bought a house in US, I transferred the money to US at usd at 67. Now usd is 71.
FCNR, money stays in foreign currency
Just buy gold. Indians love gold anyways.
I never transfer back. Always transfer to India !!
And one day transfer yourselves too 🤣
Ya lol 😂
WiRe transfer
You mean wire transfer? If you literally means wife transfer, you have an amazing startup idea 💡 👌😎
InstaReM they are much better than Remitly or Xoom
🙄 OP thinks he found some sort of loophole.
Haha we need entertainers on every platform