Hi CD s ,

Per the latest developments in India , the current interest rates on NRE deposits from 1 - 10 years is hovering at 9.25% .

With a low rupee value and non taxabiity plus full repartriability , is it a viable investment for say 3 - 5 years ?

Are there any other Banks ( preferably Ntionalized ) who are offereing a better rate ?

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Fido.

state bank of india is offering 9.5% but they are taking 4 to 6 weeks to open the NRE account and charging $10 for courier charges.
Basically the control of the account lies in india and these guys in canada only the messengers. That is kind of inconvenient to operate from here.

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MK

- I think the Bankers are predicting a meltdown with the Indian Economy / the currency, and trying to fleece the NRI as much as they could. I think they have successfully influenced the Government.

- Asia's worst performing currency of 2011,
- unreasonable real estate cost,
- steady mounting corrupt cases
- Teaming up of China with Sri Lanka and Pakistan.
- Impedance of many economical initiatives including the Retail sector shot down.
- upward of 20% inflation likely to go up soon ( Crude price is raising and INR value went down, the Govt has to make up the heaviest loss they are going through in that region)

Note that the opening of Indian stock market to foreigners did not even hit the headline in places, let alone the tremors.

If one doesn't plan to live in India, should think twice before committing.


Next stop China.........

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Where are those moron CDs who have vehemently opposed me on this forum for criticizing corrupt MMS and Sonia. Market is always right in long term and that is what is now happening. The interest rate reflects the "cost" that a nation has to pay when it is bankrupt. MMS/Sonia are the worst of the worst politicians India ever had or would have.

Guys ,

Are we expecting the Indian Rupee to take a steep decline . Where would we expect it to be 3 -5 years from now .... max Rs 60 = $1 ...

Even with that kind of a decline 10% tax free return over a period of 3 years should be great !!! ... Also with this kind of measure that the RBI has taken , billions of dollars are expected to come in which would help reterieve the falling rupee value .

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Fido.

2009-01-02 January 02, Friday 39.6204 INR

This was the 1 CAD rate againt rupee three years back


2012-01-02 January 02, Monday 52.2547 INR

is new rate after five years

So If one deposit its CAD at 10% 3 years back. Get ur math how much one would have gain after 3 years

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infocan

Quote:

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Originally posted by mkannuri
state bank of india is offering 9.5%.

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Fido.