Sell Fidelity US stocks and do Inward remittance

[CC-Muncher]

I have some US stocks in my company-linked Fidelity account. They are going to vest in the coming months and I want to be prepared to sell and encash them as soon as they vest.
I went through this informative thread and knew that IOB offers the best rate.
If required, I am ready to open a new bank account to save on charges.

Although, I need guidance and want to learn from your experiences about the whole process and experience of selling US stocks from the Fidelity account and transferring it to an Indian bank account. My end goal is to cut down on charges as much as possible.

P.S. I am a newbie and don't know any jargon on remittances. Please go easy on me 🙂

Update:
- Which intermediary to choose for facilitating inward remittances?
I found this list of correspondent banks for HDFC Bank. Do this intermediary charge? if yes which one charges minimal? ( J P MORGAN CHASE BANK - seems to be a good option)

Update: 22 May 2023
I got my inward remittance to IOB and here are the details:

Fidelity --> IOB (No intermediary bank added)

The amount transferred - 100 USD (Indicative figure)
Transfer fee 0 at Fidelity
Credited Rs. 8032

After 4 working days:

On the date of credit, the IOB rate - Rs. 82.54 (Market rate was 82.79)
Expected 82.54*100 = 8254
Difference = 8254-8032 = Rs. 222

Charges Breakup
COmmision/Fixed charge -> Rs. 177 (150 fixed charge x 1.18 GST)
GST from govt on currency conversion - Rs. 45

Different GST Rates from govt on currency conversion ->
Up to 1L -> 0.18% of ACE with a minimum of Rs. 45
1L to 10L -> 180 + 0.09% of (ACE - 1,00,000)
Above 10L -> 990 + 0.018% of (ACE - 10,00,000)

(Thanks @FatReaper for charges breakup)

 

[CC-Muncher]

In my case they don't allow direct payments in USD without any intermediary.

Select jp morgan, it's there default intermediary
I most of the cases they charge 0

 

[FatReaper]

@Akio any idea on the charges levied by IOB on foreign remittance?

Don't get me wrong, the rates are amazing, I'm just curious on how the charges are computed.

I transferred $135 and got it at 81.73 (vs market rate of 81.98).
Expected ₹11,033.55, debited ₹10,812.
Difference is ₹221.55 which is what you paid too in your example.

I've seen in the charges sheet that ₹150 is the fixed charge, add 18% GST and that's ₹177.
Wonder where the fixed ₹44.55 (in your case ₹45) is coming from.

Will have to compare with a bigger transaction to see what happens I guess

 

[CC-Muncher]

@Akio any idea on the charges levied by IOB on foreign remittance?

Don't get me wrong, the rates are amazing, I'm just curious on how the charges are computed.

I transferred $135 and got it at 81.73 (vs market rate of 81.98).
Expected ₹11,033.55, debited ₹10,812.
Difference is ₹221.55 which is what you paid too in your example.

I've seen in the charges sheet that ₹150 is the fixed charge, add 18% GST and that's ₹177.
Wonder where the fixed ₹44.55 (in your case ₹45) is coming from.

Will have to compare with a bigger transaction to see what happens I guess

Fixed charge remains same irrespective of amount

 

[FatReaper]

Fixed charge remains same irrespective of amount

I meant to ask how is the charge calculated (the 222 difference you'd seen).

Anyway, did another transaction today of almost $7000 and got the idea.
ACE (Amount of Currency Exchanged) (in Rupees) = Amount of dollars transferred * Rupees given per dollar

The charges are:

From IOB, fixed -> 150 + 18% GST = 177

GST from govt on currency conversion ->
Up to 1L -> 0.18% of ACE with a minimum of Rs. 45
1L to 10L -> 180 + 0.09% of (ACE - 1,00,000)
Above 10L -> 990 + 0.018% of (ACE - 10,00,000)


This explains your initial case, where charges were 222 for $100 (and mine too for $135).
We paid 177 (150 * 1.18) to the bank as inward remittance charges and 45 as GST for currency conversion

 

[CC-Muncher]

I meant to ask how is the charge calculated (the 222 difference you'd seen).

Anyway, did another transaction today of almost $7000 and got the idea.
ACE (Amount of Currency Exchanged) (in Rupees) = Amount of dollars transferred * Rupees given per dollar

The charges are:

From IOB, fixed -> 150 + 18% GST = 177

GST from govt on currency conversion ->
Up to 1L -> 0.18% of ACE with a minimum of Rs. 45
1L to 10L -> 180 + 0.09% of (ACE - 1,00,000)
Above 10L -> 990 + 0.018% of (ACE - 10,00,000)


This explains your initial case, where charges were 222 for $100 (and mine too for $135).
We paid 177 (150 * 1.18) to the bank as inward remittance charges and 45 as GST for currency conversion

Thanks for sharing!

 

[xxScriptzxx]

@Akio any idea on the charges levied by IOB on foreign remittance?

Don't get me wrong, the rates are amazing, I'm just curious on how the charges are computed.

I transferred $135 and got it at 81.73 (vs market rate of 81.98).
Expected ₹11,033.55, debited ₹10,812.
Difference is ₹221.55 which is what you paid too in your example.

I've seen in the charges sheet that ₹150 is the fixed charge, add 18% GST and that's ₹177.
Wonder where the fixed ₹44.55 (in your case ₹45) is coming from.

Will have to compare with a bigger transaction to see what happens I guess

Hdfc would have done at 81.93, they have preferrential rates for corporate. If there is no corporate tie up, then iob wins.

But i am not sure of fixed charges of hdfc ? I would have to check

 

[FatReaper]

Hdfc would have done at 81.93, they have preferrential rates for corporate. If there is no corporate tie up, then iob wins.

But i am not sure of fixed charges of hdfc ? I would have to check

As far as I can see, the bank doesn't take any fixed charges: https://www.hdfcbank.com/personal/pay/money-transfer/remittance/fees-and-charges

Yes, if you have a corporate tie up, that'd hands down be the best.

 

[CC-Muncher]

I meant to ask how is the charge calculated (the 222 difference you'd seen).

Anyway, did another transaction today of almost $7000 and got the idea.
ACE (Amount of Currency Exchanged) (in Rupees) = Amount of dollars transferred * Rupees given per dollar

The charges are:

From IOB, fixed -> 150 + 18% GST = 177

GST from govt on currency conversion ->
Up to 1L -> 0.18% of ACE with a minimum of Rs. 45
1L to 10L -> 180 + 0.09% of (ACE - 1,00,000)
Above 10L -> 990 + 0.018% of (ACE - 10,00,000)


This explains your initial case, where charges were 222 for $100 (and mine too for $135).
We paid 177 (150 * 1.18) to the bank as inward remittance charges and 45 as GST for currency conversion

Updated the post with your charges calculations.
Thanks Buddy!

 

[creditcarduser]

I did transfer usd inward remittence from fidelity through SBI, were do you guys select the intermediary, I didn't even find that option.

 

[CC-Muncher]

I did transfer usd inward remittence from fidelity through SBI, were do you guys select the intermediary, I didn't even find that option.

U get it while setting up transfer Instruction in ffidelity

 

[CardsHoarder]

Yes, if you have a corporate tie up, that'd hands down be the best.

Can you explain what is corporate tie up and how do we verify its there or not? Its the tie up with the employer I suppose? Do we need salary account with HDFC bank to take advantage of preferential rates?

 

[FatReaper]

Can you explain what is corporate tie up and how do we verify its there or not? Its the tie up with the employer I suppose? Do we need salary account with HDFC bank to take advantage of preferential rates?

Basically if HDFC Bank has a tie up with your employer such that if you have a salary account with them, they'll give you a preferential (IBR - 5p) exchange rate for all foreign inward remittance

 

[sm9811911]

All this discussion was about fx rates. What about documents? Any experience?
There are cases where they hold up the money or even reverse it if you do not provide a bunch of documents explaining the transaction.

 

[metalthrasher]

@FatReaper I got an email from HDFC to open HDFC Bank Exclusive Premium Salary Account as a corporate tieup with my company. The email shows IBR - 7 paisa for inward remittence. Does this 7 paisa depend on corporate company or based on my HDFC account type? I currently hold preferrred banking HDFC account. Can RM reduce this 7 to 5 paisa?

Also, if I upgrade my account to HDFC imperia banking will this reduce the 7 paisa further to 5 paisa?

thanks for this suggestion, this saves a ton of money as i was planning to liquidate around 40k $ RSUs, inter bank rate - 7 paisa is still a great deal definitely.

 

[msp]

I have gone through several threads like this and came to know that IOB gives best rate. So, I have opened an IOB account few weeks back. And my first transfer is in today. EUR is supposed to give 88.9. But I got only 86.76. That is very less. Lesser than ICICI and HDFC which I have used previously. And no explanation of charges from IOB and no invoice. How do I know more details on what went wrong?

 

[Dragon_slayer]

Is anyone else with an IOB account getting some money ~100 INR deducted every month due to some government scheme? I never signed up for any such scheme yet they are continuously deducting. Their support team is obviously clueless.

 

[quino]

Is anyone else with an IOB account getting some money ~100 INR deducted every month due to some government scheme? I never signed up for any such scheme yet they are continuously deducting. Their support team is obviously clueless.

what's the description mentioned on the statement?

 

[Dragon_slayer]

what's the description mentioned on the statement?

APYTL something like this. Its Atal Pension Yojna

 

[quino]

APYTL something like this. Its Atal Pension Yojna

mostly some branch official has forged your signature on the APY application. this usually happens with PSU banks. i suggest goto the branch manager directly & demand proof of consent/application (which obviously won't be there) & threaten with legal action against them & the employee who did that unless all money refunded.

they should comply, if not tell them you're going to the rbi ombudsman & do the same.

 

[Dragon_slayer]

mostly some branch official has forged your signature on the APY application. this usually happens with PSU banks. i suggest goto the branch manager directly & demand proof of consent/application (which obviously won't be there) & threaten with legal action against them & the employee who did that unless all money refunded.

they should comply, if not tell them you're going to the rbi ombudsman & do the same.

Yeah I am thinking to do the same, complaint to RBI. Its just that RBI asks for email thread of complain which I don't have as IOB does not really have email support