The rules and regulations of various investment plans in India are revised time to time. NRIs (None- Resident of India) stay cut off from India for the long duration. Meanwhile, finance sector continues to revamp. Failed and unprofitable policies are shredded. New investment policies are introduced to breathe fresh life in to it.
But many NRIs overseas remain blind-folded to such changes. And they continue to invest money as per old books whenever they fly down to India. India diaspora in foreign must bear in mind the frequent revamping procedure of policies and their execution. It’s the first as well as extremely vital viable tip for investment in India.
Let’s move on to find answers of the following investment-centric questions that often hit off the mind of NRI investors.
Tips for NRIs to invest in India:
- Should NRIs focus on interest rate?
India is a heaven when it comes to investment. Can you guess how much interest do the American banks provide on deposits? It’s around 1 % only. And if compare to SBI in India, this rate lies in between 4% and 5% on saving account deposit. Moreover, this interest rate spikes if the investor chooses fixed deposit plan.
However, higher interest boosts the possibility to choose the giver bank. But they can’t underestimate the overall services and facilities.
It’s noteworthy that India has many public and private banks. And each bank has a right to fix the interest rate on saving bank deposits according to their desire after October 25, 2011. But the Reserve Bank of India (RBI) has executed two rules. According to it:
- All banks must unanimously offer the same interest rate if the depositor’s amount caps under INR 1 lakh.
- If the deposited amount exceeds INR 1 lakh, the bank can choose variable interest rate on saving bank account. But that interest rate in its different branches must be identical.
- Should customer support be a concern?
Will you ever want to deposit in the bank that promises to pay higher interest rate? Of course, it can’t be neglected but you can’t ignore customer service as well.
Just think of the bank that assures more than 8 % interest on recurring deposit (RD) for one year. The bank customer support hid that mid-year liquefying would provide half of the interest offered. And when you asked for liquidity, the customer care executives did not satisfy your queries.
Therefore, it is one of the best investment tips for NRI in India to look into the customer support facility intensely. He must check if the bank provides customer support overseas where he lives and also, in India. Such attention would cut off prospective losses that may occur due to ignorance.
- Should the bank have branch overseas?
Would you ever like to invest in Swiss bank although you live in India? For sure, it’s like fool’s paradise if you take such decision. The depositor must check if the bank offers facilities to NRIs in India as well as abroad, where he lives. Thereby, you can easily check the upgraded bank offers and services through accessible customer support.
- Should free gifts matter when they choose bank?
However, almost all Indian banks offer same interest rate to NRIs. So, they introduce various lucrative schemes like tax reduction, special discounts on online shopping, free gifts and credit cards etc.. These schemes tend to attract them but the depositor must bear in mind the overall facilities. Gifts and offers are momentary. The scheme remains valid but only for specific duration. Therefore, be attentive while choosing your bank.
- Does the bank provide deposit insurance?
Every account in India is insured through deposit insurance that promises stability. But all banks don’t protect NRI’s account. So, browse all these details also.