Hey ya'll I was poking around online over the weekend and I found that many Indian banks are offering high interest rates for fixed deposits... like 10% for a 1 year term. However - it seems these nice rates are only available to residents or citizens. It's not clear how I as a US citizen can loan my money to an Indian bank. Does anyone have any experience with taking advantage of these rates? ... or just loaning in India in general?
The Bear asked me to post this. HSBC bank pays 8% to 9% interest rates for fixed deposits. HSBC is one of the safest big bank. Speak to your HSBC bank.
@Martinghoul - sort of my point... I am figuring out how this works and whether or not it is feasible... understanding the risks, etc. I understand that the exchange rate factors into the effective interest rate. What else do I need to know about the FX component? @Morganist - HSBC US's website shows <1% for fixed deposit. Am I missing something?
This is what Bearice told me and he lives in India. I think they must have a different rate. Seriously ask Bearice. He will know more than anyone here.
you do..currency risks.. in both cases...however..that currency risk can fire your way too imagine situation,where you bought rupees,open an account in india in this currency,,cd for 1 year,earn whatever interest and meanwhile dollar fell 20% against rupee. here is your home run
10% for 1 year? Thats nothing. Try Brazil. Just over 12% for 3 month government bonds. http://www.bloomberg.com/markets/rates-bonds/government-bonds/brazil/ And if you really want to lock it up for 1 year, you can get 12.5% Also, had you invested 1 year ago, you would've made ANOTHER 10% just on the interest rate alone.