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Im living in US from last 1 year due to work assignment and will be here for another 3-4 years. What is the best way to earn interest on earned money?

  1. Shall I send all earned money to India account to get 4% savings interest?
  2. Shall I start investing money on something? Dont know where?
  3. shall I wait and transfer all earned money together after 4 years?

Please suggest.

  • Are you interested in interest only, or would investment income be okay? What level of risk are you willing to take? What do you want to do with the money? When do you need the money? – ChrisInEdmonton Jan 20 '15 at 21:25
  • Most people in the US spend most of the money they earn and thus get very little interest yield on the money they earn. Most of the interest received is on the money they save in an emergency fund (fairly liquid investment) or from bonds etc that they purchase. Will you be needing the money for the next 3-4 years in US dollars? Be aware that the "high" interest rates on savings accounts held in INR in India can be wiped out by a change in the exchange rate between the time of investment and the time of need when you need US dollars to pay for that new car or an accident.... – Dilip Sarwate Jan 20 '15 at 22:40
  • Hi Chris, Thanks for your reply. Im looking for a risk free investment which can increase my earned money at the sametime dont want to hold the money in investment for long time.1 year investment would be great if there are any.Please suggest – barnali Jan 21 '15 at 15:29
  • Hi Dilip, Thanks for your suggestion.I have another query if you can suggest me something would be helpful.Im going to stay here for another 3-4 years.So,would buying home in US would be a good option rather than paying $1200 on rent or should i continue paying money on rent and invest in property in india? – barnali Jan 21 '15 at 15:33
  • 3-4 years seems likely to be too short to invest in a home (the paydown of principal is low in early years of a mortgage, and the several thousand dollars of costs up front are likely to prevent you from making money, unless you find a property guaranteed to go up in value - and if you do, let me know where that is so I can buy it!) – Joe Jan 21 '15 at 22:18
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Currently, in the US, you won't be able to get 4% return on a risk free investment (savings account, CDs, treasury bonds). If the banking system in India guarantees your money and the cost of transferring them to India is not prohibitive, that's the safest option.

Buying a house usually is only worth it if you plan to live in it for a while, 5 years or more being the commonly cited figure. Every case is different, if you rent is very high, it might be worth to buy. I suggest posting another question specifically about that with more details about your situation.

If you can tolerate a bit more risk, you might want to talk to a financial adviser and invest in the stock market.

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There is no best way, you can send the money to India or invest into shares in US. It depends on the risk you are ready to take.

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