Seeking Advice on Business Account for Freelance Income

[connection01]

Hey everyone,

I've been working as a freelancer for a while now, and my foreign remittance is currently around 50 LPA. Up until now, I've been receiving all my remittances in my personal savings account with IDFC, where I enjoy a flat 7% return on funds exceeding 5 lakhs.

However, I've recently decided to switch to a partnership firm. The challenge I'm facing is that banks don't allow businesses to open savings accounts; only individuals can do so. I'm looking for the best strategy in this situation.

I plan to regularly invest the funds in mutual funds and some in the stock market. Nevertheless, I'll still miss out on some interest benefits for the funds left in my bank account, as I won't be deploying all of it.

I'm aware of sweep-in fixed deposits, but they tend to offer low rates. So, I'm seeking advice on which bank to go with. Currently, I'm considering RazorpayX, which seems to provide some additional benefits compared to traditional bank accounts.

Any insights or recommendations would be greatly appreciated!

Thanks in advance.

 

[sidsonn]

Yes, banks will not provide FIRC for this, but I can see that Deel has a checkbox and they will directly provide the FIRC for this

 

[sidsonn]

Okay so I received the money in my Deel account today and here are my findings so far when compared with Skydo (haven't yet withdrawn the money into my normal INR savings account)

1. For small amounts such as $1000: Transferring directly from Deel seems to be a better option. Deel is charging $15 as exchange fee and converting the rest using a lower Fx rate. But still this is marginally better than Skydo.
   1. Deel amount after conversion: 81,548
   2. Skydo amount after conversion: 81,512
   3. Converted amount as per Google: 83,381
2. When the amount starts getting bigger, this changes in favour of Skydo. For $2000, Deel is charging $27 as exchange fee and Fx rate is still low
   1. Deel amount after conversion: 1,63,346.47
   2. Skydo amount after conversion: 1,64,893.78
   3. Converted amount as per Google: 1,66,763.50

I have attached images below of both for reference and Fx rates

 

[_amit_]

I think it would be nice if someone provides with bank transaction data and then we will have the whole picture of whats better.
I guess bank should be a better solution, but again, dont have the data.

Thanks for sharing the details.

 

[sidsonn]

I transferred $2142 directly from Deel into my Savings account and got the exact amount mentioned on Deel (175,051.18) into my savings account

 

[_amit_]

I tried to engage with banks again in understanding how much will one receive in hand while making a swift transfer to thier account with charges+GST+FIRX, but no luck.

Private banks near my area do not have a forex breakup understanding and IOB being sarkari is not interested in discussing.

The way I see it without knowing for sure, direct transfer from client to bank via swift might be the best case as the only fees is $5 for swift + some conversion GST charge + FIRC charge (some bank provide for free, some charge like IOB takes 250 per copy).
Though no proof as yet.