r2i forum

[SUB]Hi I am thinking of opening a FCNR deposit for 1 year. I have been wary of these for a long time as it's not FDIC insured and didn't want to complicate my tax returns. What are they key things to keep in mind before opening such an account ? I know i have to add the interest earned in the 1099 INT filings. And file the following

1. Form 8938, Statement of Specified Foreign Financial Assets Deadline : Apr 15th along with Tax Returns.
2. Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) Deadline June 30 of next year.

Anything else ?

Under what circumstance, would one lose the principal ? If the bank files banksuptcy ? If so, where can i find the credit ratings of indian banks ?
Would it also be the case if India declares bankruptcy ? or India decides to impose capital controls ?

Thanks
[/SUB]

You have too many things going on your mind. It is too much for a FCNR deposit. Why not keep the money in US checking account itself ? At least when they file for bankruptcy you are covered for 100K$.