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Another option is to put the money in foreign accounts. I don't know this space at all, but interest rates at consumer banks in India are 9-12%. Even after curr
by neilsharma 12y ago
Another option is to put the money in foreign accounts. I don't know this space at all, but interest rates at consumer banks in India are 9-12%. Even after currency exchange rates, you'd probably make >= 4%/year
- notahacker 12y agoThat interest rate is because on average, rupee inflation has been at over 9% in the last two years, and was over 11% at the beginning of the year. http://www.tradingeconomics.com/india/inflation-cpi http://www.tradingeconomics.com/india/inflation-cpi If I'd opened a bank account last time I visited India, converted sterling to rupees, to saved in an Indian bank account at 12%, I'd end up less pounds than I started with. Putting money in consumer banks in India really only makes sense if you live there.
- genwin 12y agoNo such thing as a free lunch, though. Plenty of people's savings went poof that way.
- neilsharma 12y agoWhy? Indian banks defaulting? Corruption/theft issues? I haven't tried this method -- just regurgitating advice other's have given me. Always thought it seemed more profitable than keeping money in US banks, and India always seemed accommodating of foreign money coming in.
- jonknee 12y agoForex is risky because unless you have a use for the foreign currency you are at the mercy of exchange rates. For example, INR lost 0.74% vs the USD just today.
- genwin 12y agoFor example, savers around the world were enticed by Iceland's high interest rates, and then this happened: http://en.wikipedia.org/wiki/2008%E2%80%9311_Icelandic_financial_crisis http://en.wikipedia.org/wiki/2008%E2%80%9311_Icelandic_finan... Turned out those savers were the suckers needed by those banks, in an attempt to remain solvent.