NRI May Get Less From Fixed Deposit Schemes
It’s not long since SBI cuts savings account interest rate: Good for banks but small savers may have to pay a price.
Small savers will feel the heat of SBI’s 0.5-percentage point cut in savings deposit interest rates. About 90 percent of SBI’s depositors are those with deposits less than INR 1 crore, where interest rate has been reduced to 3.5 percent from 4 percent. Those with over INR 1 crore deposits will still earn 4 percent interest. The below INR 1 crore category consists of customers who are typically risk-averse and consists of retired people or other low-income sections with little appetite for high-risk, high-return financial instruments.
Right after this move RBI (Reserve Bank of India) has cut the repo rate by 25 basis points to 6 per cent, the lowest since November 2000, as a slump in food prices sent June consumer inflation to a more than five-year low of 1.54 per cent.
Because of this repo rate change customers will get some benefit in terms of loan interest rate. On a flip side if you are saving your money in fixed deposit then you will also see a rate cut in the rate of interest. Which means your hard earned money will grow a little slower.
Lots of NRI living in UAE and any other part of the world invest in long or short term fixed deposit plans, as it’s the safest way to invest. Capital gain is slow but fixed deposit schemes don’t require investor’s attention at all. It’s like keep it and forget it.
Fixed deposits have come across as a safe and reliable way of slowly building wealth, and can be opened online if one holds an NRE/NRO account with an Indian bank. However, with inflation in India on a steady decline, the RBI has been forced to periodically reduce lending rates, and this has resulted in lower interest rates on FDs.
Currently, banks offer anything in the range of 6 to 7 per cent on NRE fixed deposits. So, check out your bank FD rates. Below are some of the rates but we suggest to visit bank website as the rates might change.
- ICICI Bank offers 6.75 per cent interest on deposits of 1-2 years.
- HDFC Bank offers 6.8 per cent on one-year deposits.
- Axis Bank pays 6.75 per cent on for one year to 18 months.
- Yes Bank pays 7.20 per cent for deposits of ’36 months 10 Days’ to ’36 months 20 days’.
So, do you have any suggestion how to gain maximum return on your hard earned money without spending too much time on it?
Related Articles
From The Web
Latest Articles 

March 7, 2021
Sharaf DG completed a successful DSF 2021 Campaign

February 24, 2021
10 Best Pool Passes in Dubai that Offer The Maximum Entertainment

February 23, 2021
9 Best Places to Taste Sweet Treats in Dubai

February 23, 2021
How to Get Dubai Visit Visa for a Family Member: A Detailed Discussion

February 22, 2021
How to Find a Job in Dubai in 2021: A Step-by-Step Guide

February 22, 2021
Top 10 Mobile App that You Must Download in Dubai to Make Life Easy

February 21, 2021
Top 10 Romantic Restaurants In Dubai In 2021: A Complete Guide

February 21, 2021
Top 5 Dubai Restaurants with new menus That You Must Try

February 18, 2021
How to pay Traffic Fines in Dubai without visiting the Traffic Department: A 5 Step Guide

February 18, 2021
Top 7 Places for an Unforgettable Desert Camping Experience In Dubai