HSBC bank is offering (http://www.hsbc.co.in/1/2/personal/bank-accounts/fixed-deposits/interest-rates) 8% interest rate on 3 year deposit. This seems quite attractive for NRIs. We can transfer money to NRO account and get 8% return compared to 1% or so we are getting here. I am quite tempted, however there are two things I need to sort out before taking the plunge:
1) Currency risk - There is possibility that rupee can depreciate against US dollar. This can result in reduced gains or evel loss of principle. I am not very bullish on US dollar given the fiscal deficit of US and hence willing to take this currency risk.
2) How to bring the money back: I have to find out process of bringing money back to US. If you know about this send me a note
3 comments:
Not sure about the rules, but having traveled to India many times over the last 18 years, the rupee has had very little fluctuation against the dollar. Its hovered between 42 - 50 rupees per dollar as long as I can remember and this little fluctuation is insignificant when you have 8% rates. I was there in Jan and banks were showing 9.5% - 12.5% rates depending on your situation.
NRO Account money is not repatriable thats why the interest rate is more. For Repatriable account the interest rate is 3. something percent.
Thanks for Sharing the article on how to transfer money easily.sending money from uk
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