Money earned in the US- where to invest?

pooja · Apr 13, 2005

After working in the US for 4 years, my husband and myself have some money, but not a lot ..lets say approximately $10,000. We are getting confused as to where to deposit the money. Should we deposit it here in the US or back home in India?

The interest rates in the US are very low but there are attractive rates in India. Have anyone thought about this before and clear on which is the best route? Any help or guidance would be very much appreciated.

ammu · Apr 14, 2005

Invest on property

Hey Pooja,

Isn't it lots?

Jokes apart...do you want to only deposit?Have you both thought about investing in property?
I heard from my people back in India that many are investing in real estate by buying house or just land. That too with so many banks giving property loans for affordable interest rates! It will be a good investment until you return to India.

You may want to think about borrowing some more money from the bank in addition to your savings and invest in a house.

Good luck.

sonal · May 11, 2005

I think it depends on where you finally want to use the money.

If your will finally use the money in India, then it makes sense to send it to India now and avail the higher interest rate. I don't see a problem with that.

If you will finally use the money in US, then there is some thinking to do. You send money to India now incurring currency exchange and money transfer charges. After a few years, you will bring money back from India and again pay currency exchange and money transfer charges. Yes, you get higher interest rates in India, but after all the commission you pay in moving money back and forth, I don't think you will save any. You also have to worry about how much will be the value of Indian rupee in american dollars when you want to bring your money back.

I would say save the money in the country where you will finally use it.

I never had to deal with this problem as I have bought a house in India that dries out my cash on an ongoing basis.