Need help for my salary conversion (FOREX)

A

Aries

Disciple
Dear friends,

I am working for a European company (Office is in France). I will be paid in Euros. The company directly deposits the money to my bank account (I have given my Indian SBI account). I will get this money in terms of Rupees with the exchange rate on the day they deposit. But I want to get the money in Euros itself and I must be able to convert it to rupees whenever I want (when exchange rate is high). I just wanted to know how can I do this. As for now I have savings account in SBI(my salary account now) and a savings account (no frills) in Germany with internet banking and International debit card (Deutsche Bank).

As far as i know I have these choices now.

Change my salary account to Deutsche bank(Germany) in the company.

1) Open another bank account in Indian Deutsche bank branch and transfer from German Deutsche bank whenever I want.

2) Draw through Deutsche bank ATMs in India from German account whenever I require money.

3) Open Forex account in SBI and make it as salary account.

I also heard that Deutsche bank will charge min 1,500/- for transferring 1000 Euros from one country to another and 1% of the transfer amount which is too high compared to SBI (SBI-)

I look for no frills (no minimum balance) bank account types.

Please help me with this.
 
Deutsche bank wont offer any no frills account and minimum AQB will be 3lacs aand rest changes will be reamin same

best option if u can open forex account but do check there is a limit on that how much a yr u can deposit
 
cant you get your salary credited to u local account in germany? u can use money transfer sites like money2india to send money to indian account when ever u like.
 
Option 1 could work, In my case I enquired with Bank of America about that and was adviced against that since the charges are high.
Option 2 will be very bad, I heard about 2-3% is charged for that(in case of Bank of America, not sure about Deutsche Bank).
Option 3 I am not aware of this option.

HDFC offers remmitance accounts for money transfer between HDFC and foreign bank accounts, one of my friend opened a remittance account to transfer USD from his BoA Account to his HDFC account. The charges he mentioned were pretty low and I am sure they have similar services for Europe too. You should check with HDFC or your bank for similar banking products.

The question is with the taxation, whether you will be taxed twice if you transfer first to your DB account(german tax) then to your Indian account(Indian tax). Also I dont know how much forex rate fluctuations you are expecting and whether it would be worth the trouble.
 
Thanks for your answers.......

@delguy19: I dont know in India, but in Germany it is possible to open no frills account but we have to pay 15 euros to the bank for the account.

@ axis: Regarding option 1, the tax is too less in SBI but the only problem with SBI now is I am not getting it in Euros. It will be automatically converted to rupees on the same day of rupees with the exchange rate on the day of deposit. For ex, if the present exchange rate is 64.5 Rs for 1 Euro, they will pay with the rate of 63.7 Rs + 55 Rs (for 500 Euros).
 
@Aries If the IBR is 64.5 and the Bank is giving you 63.7, thats actually good. As it is when you convert Euro cash to Rupees, you will get an exchange rate about 0.6-0.8 below IBR at the best. Try Thomas Cook and they will give you something like 1.2-1.5 below IBR :mad: .

I understand your concern with the Exchange rates, but do check if you get your salary in German account and then transfer it to Indian forex account, if you will be double taxed. The taxes will cancel out any gain you might get from better exchange rates.
 
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