Indians invest in NRE FD vs CD in US ?
For my indian friends, the CD in USA gives average 2.4% APY over 5 years. A NRE FD opened in india would be average 5%. Do you invest in latter or former as with latter you need to consider the exchange rate of when sending money in USD as it gets to INR and vice versa when taking money back. I am thinking of alternative investments as stock and all are down. A guranteed growth. Yoe 7 Tc 250k
Avoid investing in india unless you are 100% sure of returning back to india . Indian taxation rules keep on changing.you have to pay tax when you break your FD then file ITR to get it back. With all rules in place its not simple to get your money back to USA. extra 2% return will not be worth the hassle.
None. Ruppees has devalued by 20% last 2 years. No low risk asset is gonna give you returns to offset that. Dca into the market.
I used to put it in FD in India when interest rates were 7%+ few years back but there is down side of paying taxes on that interest here. Based on my experience, I would recommend putting it in Nifty Fifty/Nifty Next Fifty in India over FD. So, that you can get average 10%+ tax free until you sell. I would never ever put it in CD with such low taxable interest. I would rather just keep it in bank account. I would blindly put it in S&P 500 any access cash I have over putting it in CD/bank account here in US no matter how expensive market is. Good thing is market is down now, so better to put it in market than CD/FD. This is just my opinion though!
How do you invest in Indian stock market with your rupees in Indian banks?
I don’t invest in individual stocks but just in mutual funds. There are couple of brokers who allow NRIs to open the account and do SIP from NRE/NRO bank accounts. I use UTI (had to be in India to open the account).
Is the money coming from your earnings in the United States? If so, when you convert it to send to India to earn the interest, and then convert it back to US dollars to spend it here after the five years, all things being equal the foreign exchange rate would have moved against you so that you only end up earning 2 percent anyway. Now you can get lucky with random timing of events that this won’t happen but you are really just then speculating with Fx markets and not investing in fixed income.
If your interest rate is lower than inflation, you have negative return. You want a guaranteed negative return, cash app me dude.
Look at FCNR deposit -invest USD in Indian bank account and get 3.35% to 3.5% interest rate. This is parking USD in Indian bank account and withdraw the earnings to US bank account without paying any taxes.
Interesting. Which bank is good for FCNR
I think major banks HDFC/ICICI/Kotak/SBI more or less same interest rate
Follow
Instead of this try i-bonds , they are almost 10 percent right now
Which banks are good
Google i-bonds; these are sold by us Treasury online; highly secured and current apr is 9.61