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Preet Banerjee, B.Sc., FMA, DMS is a former stockbroker and financial advisor in Toronto. Information on this site is for entertainment purposes ONLY. Always seek individual professional advice before making any financial decisions.

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10% Interest on Bank Deposits in India

December 12th, 2008 • Related • Filed Under
                                                         

I forgot to mention that I’ve already left for India! Posts will be sporadic, but I may decide to sit down later this weekend and write up some short posts to publish over the next couple of weeks. I spent the first week in Fort Ramathra which is about as far away as you can get from the city – there is actually no pollution there. My uncle owns the fort and they’ve been rebuilding it and it now operates as a resort/hotel. Further away from civilization is harder to imagine – and how welcomed it has been! Anyways…

While on our way into one of the main cities (Jaipur) I noticed plenty of signs advertizing 10% interest rates on bank deposits. Sounds pretty good compared to our paltry 2-4% rates on offer these days for similar short terms… until one looks at inflation – it just dropped to about 8% annualized. So after inflation and after taxes rates are comparable for the most part.

Please take a look at the website for the Ramathra Fort – it is breath-taking. If you are planning a trip to India, I highly recommend spending a few days here. One of my cousins will take you for a hike to see the rural (and I mean RURAL) villages of India – a side of the country not normally seen by tourists.

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There Are 3 Responses So Far. »

  1. Pingback by Intelligent Speculator » Blog Archive » Investment Talking on 13 December 2008:

    [...] You can get 10% interest on Bank in India posted at Where Does All My Money Go? [...]

  2. Comment by guest on 26 December 2008:

    hi preet,
    hope you are enjoying your stay in India…I was there for 3 months recently..

    i was looking at the Indian interest rates too…the only worry i have is the the exchange rate risk of the Indian rupee losing over Canadian dollar in a year.what is the percentage you might consider
    worth the exchange risk.. if the Indian interest rate is 10% & if we think 4% might be the exchange rate risk,,,the balance 6% would still be good isnt..

    thanks
    sam

  3. Comment by Mark on 1 January 2009:

    Wow. Inflation is 8 percent in india. That is incredible.

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