Gone are the days where one could earn 10-12% interest on our NRE bank Deposits.
It seems NRE (Rupee a/c) savings deposits in India is no longer a wise investment now.. About 20 years ago, banks were offering up to 17%. It was down but steady for about 12 years at around 11% and before July 17 this year, banks were still offering around 7.5%. But from August this years, rates were down to 3.8% and now with eff. from 1st November 2003, no known bank will offer more than 1.75% for a 12 months term deposit. Some of the popular banks with latest NRE interest rates eff.1.11.03 are listed below. Bank 1 yr 2 yr 3 years canra 1.75% - 2.70% Synd. 1.6 - 2.7 Baroda 1.55 - - SBI 1.7 2.5 3.0 Corp. 1.7 2.4 3.10 Centurn1.55 2.15 2.75 In view of above, now, one may be even better of keeping his hard earned money in the banks of the country of residence say UK one can earn upto 4.5% interest p.a. but taxable at source. Alternately, FCNR (Foreign Currency Non-Resident), deposit in Indian banks can earn higher rates of interests i.e.for GBP( � ) 4.25%, 4.65% & 4.85% for 1, 2, & 3 years term respectively. (US$ 1.25%, 2%& 2.6% whereas Euro 2.15%, 2.70% & 3.10% respectively. All Income TAX FREE. Again, ordinary resident deposit accounts continue earning comparatively higher rates of interests i.e.6.25%, 6.75% & 7% for period 1, 2 & 3 years respectively. Senior citizens earn 0.5% more. But income from ordinary resident deposits is subject to Income tax and is deducted at source. Hope the above info is of some interest to some of you. (Source: from Various banks websites) Thanks for your time. Joegoauk ########################################################################## # Send submissions for Goanet to [EMAIL PROTECTED] # # PLEASE remember to stay on-topic (related to Goa), and avoid top-posts # # More details on Goanet at http://joingoanet.shorturl.com/ # # Please keep your discussion/tone polite, to reflect respect to others # ##########################################################################
