I've used both HSBC (Premier) and Deutsche Bank to move money between India and UK. HSBC took 24 hours, and Deutsche Bank was actually under 15 minutes before the funds showed up in the other account!! ^

^ and what were the approx fees for both of these banks ??

- HSBC UK to HSBC India (both Premier a/c) -> No fee at either end

- Deutsche Bank Private Banking India to HSBC Premier UK -> No sending fee from DB ; GBP 15 charged by HSBC Premier UK (fixed sum independent of transfer amount)

hmmm.. fees quite reasonable IMO..ofcourse it helps tht there are HNI accounts ;)

So folks I was wondering if I could get some opinions on a plan of mine. I was looking at the rates for fixed deposits yesterday at some Indian banks and noticed some pretty nice rates. I am thinking of taking a home equity loan on my house and investing in India. With 4-5% interest rates and 8% for 1 year FDs, I think there is a little bit of easy profit.

So my questions are:

1. Is there an equivalent of the FDIC in India?
2. If no to the above, is there some way to know my money will be safe in Citibank/ICICI?
3. If no to the above, is the best option to invest in some nationalised bank?
4. How is the service from these nationalised banks?
5. Is opening and redeeming a FD a long process generally? Do I need to jump thru hoops for a little profit?
6. I have no experience in dealing with the Indian banking system, is there anything odd or very different from the US system?

Answers to some of your questions:

- I personally do not trust Citi at all after some very bad experiences with them over the last 2 years (nothing to do with the current Gurgaon scandal.)

- FD rates in nationalised banks (like SBI) are generally superior to private banks (like Deutsche or StanChart). HDFC offers a good service IME and good rates. The process at HDFC is quite simple, as long as you already have a savings a/c. Not sure how a walk-in who is not a bank customer will be treated. These days the KYC/AML regulations are quite stringent.

- FD rates have crossed 8.5%. Be wary when asking for a 1 yr FD. Often a, for eg., 1yr16day FD might offer 9% while a 1yr-1yr15day might be 8.5% and a 1yr17day-2 years might be 8.5% as well! So it pays to read the full table!

HDFC is an example of this. See below link for what I mean:

http://www.hdfcbank.com/personal/acc...d_interest.htm

Now the bigger question is, would you be eligible as a domestic resident and do you have a PAN number?

Citi's FD rates don't seem the best. I notice the strange rates on HDFC and thought it was a typo.

I don't have a PAN and am not an Indian citizen. I do have OCI though and my wife is an Indian citizen with a PAN#.

I can still apply as an NRO right?

Not a typo. Most banks seem to like doing this!

Yes, NRE and NRO a/c's can get fixed term deposits, however, the interest rates are different (and much much lower!) from what I understand. Especially true for NRE deposits.

Is it an option to have the deposits in your wife's name? Or atleast with her as the first holder? (Depends how much you trust her of course...! :p ;) )

You mean lower than deposits by locals/non-NRI's? When I was in India, I was always under the impression that NRI's got the best deals.


Yes it is, even if she is the only on the account. :)

Its not such an easy profit since if u earn interest income in india, since there r forex rates to be taken into consideration.. and also taxability of the income (in this case interest) earned in india depending on residential status etc..

Since I/wife is an NRI, there are no Indian taxes right?

If nri then yes AFAIK since taxes need to be paid on all income earned or accrued in india.. problem is with tax deduction by banks and filing IT returns if income goes above minimum taxable amount..

Opening / closing of FD's is quite simple if u already have some relationship with that bank.. and in many instances also easily possible thru Internet banking..

Sorry for any misunderstanding, I have edited my previous post. If I have a NRE account, there are no taxes right? Can one open an NRE FD?

check this link..hopefully more clarity from this..
http://www.incometaxindia.gov.in/pub...Chapter002.asp..
basically what i understand is all income if earned in india, taxes need to be paid whether resident or non resident..

Good link, but I wonder why they say here that NRE accounts say tax free here:

http://www.hdfcbank.com/nri_banking/...d_deposits.htm

Also it looks like the interest rates for these accounts are pathetic. The rates for the NRO accounts are good, but they are taxed and only interest can be repatriated. :td:

I really thought NRI deposits were treated better.

http://www.experts123.com/q/what-is-...r-account.html