Wednesday, December 23, 2015

Difference between Resident and NRI Fixed deposit India

As the name suggest, Resident Fixed deposits are for Resident of India and NRI fixed deposit are for Non-resident Indians but remember both are for Indian Citizens. Indian banks, both private banks e.g. ICICI, HDFC, Kotak, Citibank, DBS, Deutsche, Axis bank and public sector banks like SBI, Bank Of Baroda, Union bank offers both resident and NRI fixed deposits, but they usually have different interest rates. A resident can only open the resident fixed deposit, you just need a saving account for that. For opening NRI fixed deposit, you need either NRE or NRO saving account.

Saturday, December 19, 2015

2 Ways to send money from HongKong to India, HKD to INR - Money2India vs Remit2India

Apart from international wire transfer, western union, and MoneyGram, there are three major online services you can use to send money from HongKong to India. Apparently, HongKong has less option as compared to Singapore for sending money to India. Unlike DBS, the local bank in HongKong - HSBC, Standard Chartered, Citibank and Bank of China doesn't provide direct remit to India. BTW, you don't need to be the concern because these three online services e.g. Money2India, Remit2India, and AxisRemit are backed by reputed private sector banks in India e.g. Money2India is backed by ICICI bank, Remit2India is backed by TimesOfMoney group and AxisRemit is backed by Axis Bank.

Monday, December 14, 2015

Best Bank or WebSite to transfer money from Singapore to India

There are many options to send money from Singapore to India, but online money transfer is the best. You can transfer money at your convenience without the hassle of visiting bank or remittance center, but given there are a lot of banks and websites providing online money transfer from Singapore to India, which one is the best? Which will give you the best exchange rates and charge lowest transfer fees? Do you need to create another account or you can use your existing DBS, OCBC or UOB account to wire money from Singapore to India? Which bank is quickest in sending money to India.

Friday, December 11, 2015

Can you deposit Indian rupees to NRE account?

No, you cannot deposit Indian rupees into NRE account. The only way to fund an NRE account is via foreign currency remittance, foreign currency deposit when you visit India or via foreign currency traveler's cheque. Since NRE saving account is at par to FCNR deposit, this is the restriction they have imposed.

Monday, December 7, 2015

Can I Repatriate (transfer) Money from NRO Account to Overseas?

Yes, you can repatriate money from NRO account unless it doesn't exceed USD 1 million per calendar year. Normally, fund lying in NRO saving account or NRO fixed deposit is not subject to repatriation abroad and that's why I suggest you open an NRE account, which allows you to freely repatriate the money.

Friday, December 4, 2015

13 Things to know about Public Provident Fund PPF Investment in India

PPF is a short form of Public Provident Fund and it's one of the best long-term investment for Indian citizens, sorry NRI cannot invest in PPF if they don't have an account already. Since many Indians are not aware of PPF and doesn't know much about it, I have jotted down some important points of Public Provident Fund scheme.

Saturday, November 7, 2015

Why Should an NRI Open NRE or NRO Account?

Many of my NRI readers ask me frequently, should I open an NRI saving account in India? Is it must for an NRI to open NRE or NRO account? Can I continue my existing Saving account in India? etc. Well, If you are going abroad for short term let's say less than 6 months then you don't need to open an NRE or NRO savings account and you can continue to maintain your existing Resident Saving account in India, but you are going overseas for long term e.g. more than 6 months you must inform your bank about your NRI status and subsequently then will convert your Resident Saving account to an NRO (Non-Resident Ordinary) account.

Tuesday, November 3, 2015

5 Differences between NRE and NRO Fixed deposit -HDFC ICICI SBI Kotak

Difference between NRE and NRO fixed deposit
NRI has two option to invest in Fixed deposit in India NRE  fixed deposit and NRO fixed deposit, but you need to be careful whether you choose NRE or NRO fixed deposit as taxation rules on NRE and NRO Fixed deposit is different. Principle and Interest earned in NRE fixed deposits are completely tax-free while interest earned on NRO fixed deposit are subject to TDS and deduct at the maximum rate of 30%. Also, you can send rupees back to your overseas account if it is held in NRE fixed deposit, but you can not repatriate money from NRO fixed deposit.

Saturday, October 31, 2015

Tax Saving Instruments and Investment for salaried employees In India

Tax Saving Schemes for salaried employees India
As the financial year proceeds to ends many of my colleagues and friends started thinking of about tax saving though I have always suggested them to do it in a planned way from the start of the year it never happened. Since we all know that we can save up to 1 lac under Section 80C of the Income Tax Act and there are lots of tax saving scheme available.

7 Things to Consider While Buying Online term Insurance plans

Online insurance plans like an online term insurance plan, online health insurance plans are getting popular due to their lower cost compare to buying similar insurance plans from agents or insurance agency.  An online terms insurance plan for 1crore for 30 years may cost you around 5500 from ICIC Prudential iProtect which is way lower than if you buy it from any insurance agent.

Saturday, October 17, 2015

Can I repatriate funds from NRE or NRO Bank account? Yes

Yes, you can repatriate funds from NRE, NRO or FCNR account to abroad, but each has their own rules and limitations. NRE and FCNR accounts are most flexible in terms of repatriation, also known as freely repatriable, which means that no prior RBI approval is required to remit funds overseas from these account. This includes both NRE and FCNR fixed deposit as well as NRE saving the account. You can also repatriate both principle and interest earned to overseas from these two accounts.

Friday, May 22, 2015

Can I withdraw money from PPF account before maturity?

Can we withdraw money from PPF account before maturity?
One of the most common questions people ask before opening a PPF account is "can we withdraw money from PPF account before maturity?". One reason for this question is long tenure of PPF account (15 years). The short answer of this question is Yes, you can withdraw money from PPF before 15 years but you can only withdraw a maximum of 50% of the balance at the end of the fourth year and that too only after completing 5 years. Which means for first 5 years you cannot withdraw any amount from PPF.