37

It depends on your bank's terms (which may in turn be influenced by laws and regulations), but most banks calculate interest on a per-day basis, so if you leave the money in the account for more than a day, it will generate interest. However, it will most likely be so little that you could make more money doing any kind of paid work in the time it took you ...


15

Ditto @MichaelBorgwardt Just to get concrete: I just checked one bank in India and they say they are paying 4% on savings accounts. I don't know what you're getting or if 4% is typical in India, but it's at least an example. So if the bank pays interest based on average daily balance, and you left the money in the bank for a week, you'd get 4%/52 = .077%. So ...


11

You goal should be in rupees, as you are earning in rupees and spending in rupees. Any other currency is of no value / meaning. More than being worried about the USD/INR rate, you should be worried about inflation and savings rate. This will change the amount that you need to save for your retirement. The USD/INR rate would anyways get reflected into some ...


7

If you earn Rupees, keep your money as Rupees, and spend the money on items denominated in Rupees, the dollar doesn't mean much to you any more than the Italian Lira means to me.... Do you mean to track as though they were dollars or actually convert as you earn the money? From X-rates, I looked at this chart. There's been a 10% swing in the exchange rate ...


5

The Hong Kong Dollar has been pegged to the USD for nearly 30 years and the Hong Kong authorities have fairly strong means to defend the peg. So at first glance it would appear that there is really no difference as long as you are getting 7.75 HKD for each USD that you used to receive. However, the peg is arbitrary and could be lifted at any time like the ...


5

In general, payments will be in the currency denominated by the seller. Your bank will automatically convert a balance of INR from your card to whichever currency you chose to pay in (be it USD or EUR) based on the bank's current exchange rate of that currency pair and some currency exchange fees will be charged on top. Fees involved is something only your ...


5

I am in a somewhat similar situation. I am in my 60's with all bases covered - no debt, health insurance covered, fully paid long term care insurance, two variable annuities covering all of my living expenses as well as sufficient assets to cover whatever time I have left. Like you, my risk appetite has diminished. I have reached the point where ...


4

Modified version of now-deleted comment Chris Rea points out that Canada taxes world-wide income (as does the US). Thus, you should be reporting the interest earned each year on your annual tax return and paying taxes on that. When you convert these monies from INR to CAD for the purpose of bringing them back to Canada is irrelevant as far as the taxation ...


4

One can pay via Indian Credit Card. The card company will convert the USD and charge you in Rupees. And when there are enough Indian websites that do domain name registering, any specific reason you are looking at eurodns.


4

You should be able to convert this officially. As per RBI regulation an individual can hold upto USD 2000 eq for an unlimited period of time. See the point 14 on RBI FAQ's for Fx.


4

Your son needs to go to his Bank of America branch in Atlanta and get the exact address of the BOA branch that the SWIFT code is assigned to; it is not necessarily the branch where he banks at, and it might even not be in Atlanta. A correspondent bank is a bank that small banks use to handle their international bank transactions, e.g. a rupee bank draft ...


4

They are asking me that my first fund should be transferred directly from my US bank account (possibly through wire transfer). The FEMA rule is that transfers into an NRE account should be from abroad. This is because the funds in NRE accounts are repatriated and to avoid misuse, the source of funds should be from outside India. A wire transfer establishes ...


3

Note that many funds just track indexes. In that case, you essentially don't have to worry about the fund manager making bad decisions. In general, the statistics are very clear that you want to avoid any actively managed fund. There are many funds that are good all-in-one investments. If you are in Canada, for example, Canadian Couch Potato recommends the ...


3

There are quite a few options. Suggest you put a mix of things and begin investing into Mutual Funds. Open a PPF / NPS account. The returns are decent and secured, but there is a long time lock-in Open Fixed Deposits Start investing small amounts in Mutual Funds, start with Index funds and then into Diversified equities before going into other type of funds ...


3

The other answers demonstrate that you'll receive a paltry amount of money in two days, by comparing to things like wages, the cost of electricity, etc. But the real point is you're incurring risk by paying late, in particular, the realistic risk of the post office messing up. That's not worth it, and it's this kind of overhead that people usually mess up ...


3

I don't think the current tax proposal is significant to influence a decision. The key is risk. As you are adequately funded for your living, the surplus is not critical. So essentially even if you burn the money you are still well off. So whether to stay invested in mutual funds or FD or spend for a vacation or something else is up to you.


2

By no means is this a comprehensive list, but a few items to consider: As a retail investor, do you know any companies that can benefit from inflation or the INR depreciating in value and can you work/contract/invest with them? Based on the interest rates at Everbank (here in the U.S.), can you earn competitive interest on the INR there (a 3 month CD here ...


2

You could buy some call options on the USD/INR. That way if the dollar goes up, you'll make the difference, and if the dollar goes down, then you'll lose the premium you paid. I found some details on USD/INR options here Looks like the furthest out you can go is 3 months. Note they're european style options, so they can only be exercised on the expiration ...


2

Please declare everything you earn in India as well as the total amount of assets (it's called FBAR). The penalties for not declaring is jail time no matter how small the amount (and lots of ordinary people every 2-3 years are regularly sent to jail for not declaring such income). It's taken very seriously by the IRS - and any Indian bank who has an office ...


2

If you are tax-resident in the US, then you must report income from sources within and without the United States. Your foreign income generally must be reported to the IRS. You will generally be eligible for a credit for foreign income taxes paid, via Form 1116. The question of the stock transfer is more complicated, but revolves around the beneficial ...


2

1.What are the tax implications - income tax, gift tax, wealth tax etc. for the money credited in the NRO Account? As the funds are transferred by your wife to you, there is NO Income. Hence Income Tax rules don't apply. It would be treated as GIFT and come uder Gift Act. As per gift Act, one can transfer unlimited amount between close releatives. The ...


2

As mentioned in other answers the interest you make is negligible and the calculations would depend on the bank. In saying that the general trend is calculate daily, pay monthly. A typical scenario would be that every night at midnight the interest for your account at that point in time is calculated. This occurs every midnight and at the end of the month ...


2

As an Indian resident you can open an Resident Foreign Currency Account, i.e. an USD account. This facility is provided by all major banks. I am not sure if PayPal would transfer money to these accounts or would convert. The alternative is to give this account number along with other Bank details to the company in US and ask them to send money via ...


2

receiving my salary in INR in India in ICICI Saving account As an NRI you cannot have Savings account. Please have this converted to NRO ASAP and open an NRE account. Can I fill my ITR now and what is the time line. Generally if taxes are due, returns need to be filed by July 31 same year. If no taxes due, then 31 Mar next year. So for the financial ...


2

There aren't and for a good reason. The long term trend of INR against USD, GBP, EUR and other harder currencies is down. Given the inflation differential between these economies and India's, fund managers and investors should expect this to continue. Therefore, if you are invested for any reasonable length of time, you would expect the forex movements to ...


2

Yes. The bank is right. The funds need to be deposited in NRO account. Under the liberalised remittance scheme, you can transfer upto 1 million USD per year. There are prescribed forms that need to be signed by a CA (essentially stating taxes are paid). You can then move this out of India.


2

If you get your income in the currency you have the new loan in, there is no exchange risk for the future. Assuming that you are able to get and serve that loan, it reduces your cost, so go for it. Yes, if the currency exchange rate changes the right way over the next years, you could have made a better deal - but consider it could also go the other way. ...


2

Fundamental rule of investing money : High Risk High Return Low Risk Low return Now come to the point, best money investment Public Provident Fund : It is the safest and secure long-term investment product amongst the best investment options in India. It is totally tax-free. Under the PPF account opened in bank or post office the money get locked for the ...


2

You can open a NRE account or a NRO account online before you leave the US and transfer the bulk of your money into it. After returning to India, your tax status will be RNOR (Resident but Not Ordinarily Resident) and you can keep the NRE and NRO accounts for several years (three?) and can do whatever you like with the money in them: transfer the money to ...


2

It all depends on your credit card company, and maybe on the nature of the transaction. I recently used a debit card to withdraw cash at an ATM in a foreign country. I was charged an ATM fee by the bank that owned the ATM, another ATM fee by my bank, and a currency conversion fee by my bank. All told these fees added up to almost 7%. On the other hand, ...


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