An investor always loves to choose the bank that offers more rate of interest on deposits. It implies higher interest rate always attracts more investors. Non-residents of India (NRIs) are no bar from such intensions.
What’s prevalent rate of interest on saving account in India?
Indian banks mark an edge over European banks. They offer higher interest rate than that of western countries’ banks. Swiss or American banks’ cut off of interest rate remains under 1% for saving account. On the contrary, SBI, HDFC, Axis and PNB facilitate 4% interest rate on saving account. And this interest rate appreciates upto 8 % when one goes for the fixed account investment.
What apex bank Reserve Bank of India (RBI) states?
Reserve Bank of India (RBI) is an apex banking institution. It regulates banking system and norms in India. It used to fix the rate of interest for various accounts. But it has parted itself from regulating deposit interest rate after October 25, 2011. However, it has optioned two:
- All banks in Indian must restrict their rate of interest on saving account worth Rs. 1 Lakh.
- Exceeding INR 1 lakh saving deposit entertains the investors with different interest rate. And also, the apex banking authority will not intrude in the matter of interest paid on current, saving and FD account. It also looks up whether the similar amount, acceptance of cheque and OD or any other.
Indian banks deliver a lot of NRI investment services, rebates or special service offers for banking. Taking pay bills for expenses into account, one can estimate why India magnetizes them for investment. It facilitates property maintenance, life insurance premium and sending money to family in India.
What things an NRI should notice before investment?
Interest rates do attract but what if its customer support throws ordeals? So, the Indian diaspora should keep in their memory that:
- The bank should have its branch overseas. If it is so, the customer support can help them out in sorting any bank related issue.
- Accessibility of the banks means a lot. Sometimes, NRIs have to wait in lanes for hours to resolve their banking issues. Check out whether the bank sends its representative to the client’s place or not for facilitating with NRI services. If it happens, the clients will be associated with it for long time.
- Notice whether the bank provides special offers time to time especially for NRIs or not.
- Notice the interest rate for NRIs. Compare them with the interest rates of other banks as well.
- Check whether the bank offers deposit insurance or not. Don’t assume that the bank generally offers. Sometime, it may not.