Hello,

How to get Indian Rate of Interest on Cad$ & get that interest transferred in Cad$?

In brief:
- I have Cad$ seating idle in my Saving a/c in Canadian Bank, which gives me
interest of 0.5 to 1.5% (if in Fix deposit then, 2-3%).
- I understand that this money in India would have received interest of 8 -
10% in Fixed deposit a/c.


My situation:
- I am in Toronto.
- I do not have anyone in India, who can take care of my bank a/c in India.
- Any transaction has to be done by me from Toronto, either in-person or
online.


My concern:
- Is there any way, I can open bank a/c and Fixed deposit account in Indian
Bank in Canada so that I can receive rate of interest of India's bank and get
that interest transferred in Canadian Bank OR India's bank in Canada in
Canadian $?

If it is possible,
- How can I open such a/c?
- Which bank do you suggest?
- How this transactions are to be done?
- Would I have to pay taxes (in India / Canada) on interest earned on Fix
deposit?


OR

If above-mentioned is not possible then,

Can you suggest any other option to earn better interest on my Cad$$?


Eagerly awaiting for your replies

You can get 8-10 % interest ONLY if you change your CAD to INR . INR has lost almost 10 % in last few months against CAD and is expected to lose more .
You do the math if it is worth it because by exchanging your money twice you will be actually not even making 1 % , instead you may be losing some .

Experts can add more to it .

If you do a search there was a discussion on similar topic recently with lot of beneficial information .

AG

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Hello AshwiniG,

Thanks for reply.

Ok. Even if I have to convert Cad$ in to INR and then, convert the interest (earned in INR) back into the Cad$ (exchanging twice), will probably earn more than .5 to 1.5% RoI from Saving a/c in Canadian Bank.


For eg.
Can you please compare calculation of following:
-Cad$1,00,000.00 RoI in Canadian Bank Savings account at 1%
V/S
-INR5,00,000.00 (eg.Cad$1=INR50.00) RoI in India's Bank at 9%?

Bigger the amount of Cad$, bigger the difference.

Thanks for your response and awaiting for your more feedback.

Earing of every single $ counts a lot, atleast in my case....

You can try contacting ICICI Bank Canada or State Bank in Mississauga/Toronto to see if it can be done.

For the banks in India, it is not easy to open a bank account in India on the internet. Usually you have to be available in person. Some banks do verification of your local address also. Also it is not possible to bring that interest money back to Canada through online banking. You have to go in person, fill up the forms, get draft made or wire it to Canada.

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Hello ashedfc,

You are right. There is no one to take care of bank a/c or IT in India. I am in Canada for good. So, NRO is not a feasible option.

So, FCNR is a better option? How much is a difference of Interest, in comparision to Canada's bank? And, post tax, how much can be the benefit?

OR as I requested, please suggest some option, where stagnant money can work for me.


: It's okay for me to go in person to the bank branch in Canada (every 1 or 3 months) and get draft of interest, if I get more interest in in comparision to Banks in Canada. As I wrote earlier, there is no one in India, who can take care of bank a/c in India and now, there is no address in India (landing fees...!!)

Quote:

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Originally posted by daavidy


: It's okay for me to go in person to the bank branch in Canada (every 1 or 3 months) and get draft of interest, if I get more interest in in comparision to Banks in Canada. As I wrote earlier, there is no one in India, who can take care of bank a/c in India and now, there is no address in India (landing fees...!!)

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At least no luck in ICICI Canada.

Btw, any one has visited branch of ICICI, Canada?

Teller was really good but, they do not have any other person to explain differences/help.
Cost cutting?! Every question has one answer ... Contact Call Cenre.

They do not have banking officer or financial advisor. Bank had only two tellers...That's all...

I was little disappointed,