Indians: NRE/NRO interest earnings
Hi fellow indians on blind, I am new to money and investing. I was hoping to get some help on getting started. A couple questions: 1. does nre/nro account offer better credit than us bank? 2. Which bank would you recommend? 3. How much interest should I expect? 4. Can we negotiate for higher interest rate? #workvisa #h1b #india #desi #banking #amazon
Research FCNR, for maintaining money on USD in Indian banks. Last I checked interest rate was 2ish for usd.
6 to 7 % in nre account
is this usd or inr interest?
INR. 2-3% USD. INR rate is not enough to offset depreciation against USD if you're spending USD. Combining taxes, airport like conversion rates, fees, and Indian anti remittance law and it's very difficult to get USD out of NRO but very easy to put USD in. Don't put money in NRO you want to spend in America.
But you need to convert into INR and when you want money back in US, again you need to convert back to USD. So if you want to invest for 3+ years, go for it. If you want to invest only for an year or two. All the 7% will be adjusted in exchange rate and all
ah i see
I lost lot of money in nre because of exchange rate. You pay American tax and it's a pain during tax time. You can open a CD instead of nre deposit
what is a CD?
Certificate deposit. Ally bank used to give up to 2.5 to 3 percent apr until recently. The rates have all gone done in the last yr. I used to put all my cash in CD and invest the rest.
there are many MF not linked to market research those. i started doing the same.
which ones?
Just research about governament securities fund
Been in US over 15 years, never had a NRE/NRO account. Using Resident account and maintaining minimum balance in it for any india expense needs. Whats the advantage of going NRE/NRO?
u will have a gc shortly or have already got it. so this shouldn't affect you :)
Nre is great for longer investment
It’s easy to transfer money to NRO accounts, but very difficult (if not impossible) to get it back to US. The INR-USD conversation rate and bank commission both ways kills any extra interest % you get. Maintaining an Indian bank account online is pain. I think ICICI provides a most comprehensive online options, still I panic if I type my password wrong because they block your account for stupid reasons and getting them unblocked is a huge pain, you send them a physical letter to Mumbai. Once a year, you upload the exact documents in the exact sizes for your KYC, and every time they would reject it because they didn’t see your documents properly and threaten to block the account. Save yourself all this grief and put your money on index funds.
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NRE accounts give you 3-4% interest in usd and 6-7% in inr. You will be paying tax on it in US. So I don't see any advantage as a investment tool
us banks are giving 0.02% interest. So isn't it better there?
Much better to invest in stocks/index funds