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POSTED BY ON November 3, 2010 6:21 pm COMMENTS (4)
I was just checking the interest rates in various countries. It seems that Brazil’s interest rate is the highest at 10.75%. This would mean that their fixed deposits too would be at least giving 10.75% (ideally around 12%). So, why not open an FD in Brazil? 🙂
My question is – Can Indians open a fixed deposit in a bank in Brazil? Is this legal/allowed? What are the tax obligations? Anyone have any details?
Thanks,
Ram
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Ram
If DTC comes , these FD’s will attract Wealth tax , but apart from that , the major issue is currency fluctuation and the rules for investing outside india and its complications . I am not an expert on this , so I dont have anything else to say 🙂
Anyone ?
Manish
Manish,
Thanks for your reply. I get the feeling that maybe even with currency fluctuations one can beat the best FD rates in India (currently around 8%).
India’s rate is 5% and even with a regulated savings bank rate (which is kept low) we have 3.5%. Brazil’s normal savings account would definitely offer close to or higher than their 10.75% rate.
Let’s wait for an expert on the forum to tell us how to invest and then we can all be rich :).
I am not sure but wont the currency conversion and fluctuation along with the taxes for FII make it less attractive. Its a wild guess I am not sure even if opening a FD is possible 🙂
Arch,
Agreed on the forex risk. I’m not an expert either on that. For tax, as Manish says below that once DTC comes this will have wealth tax.
Thanks for your inputs.