Posted On
1/6/2017
8:44:28 PM
by
Sudeshan
Better Post Office, If u invest 1.5Lacs in Post Office, u will get 3.25L after death. Same way invest in ur parents name also.
Good returns. If u invest then Invest, Because money is Yours, Choice is yours,
Post reply for others benefit.
God bless.
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Posted On
1/7/2017
6:17:55 AM
by
Mom of two
Thanks Sudeshan. But I want to know better option between these.
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Posted On
1/7/2017
9:38:39 PM
by
Ten
Why don't you start with the near future? Put it in FCNR USD for five years, watch how things go, and then take another decision at that time. True, interest rates for FCNR are pretty low, but you'll probably be better off with the exchange rates by the end of the term.
Cheers!!
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Posted On
1/7/2017
9:46:51 PM
by
Police
Dr. Abdul Rahman changed his name to Sudeshan.
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Posted On
1/8/2017
12:34:41 AM
by
Mom of two
OK.Thank you, ten!!
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Posted On
1/8/2017
1:52:12 AM
by
hiho
Its a good question but one without a proper answer unless you are a seer. For FCNR, the maximum period of deposit is 5 Years. So while the interest rate is low (say 3%), you may gain more compared to that NRE FD rates if the Rupee/ Dollar appreciates in favour of the Dollar. However, if the Dollar weakens (which is unlikely despite what Modi bhakts say), you may lose big time, both in interest rate & exchange..
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Posted On
1/8/2017
3:05:57 AM
by
Varghese Varghese
Here is what I learnt from my experience. Deposit the money in NRE FD long term. When matured, you can revert to dollars if you want. Here is a comparison table from my own experience. I deposited 10,000 US dollars in 2005 Jan at 3% interest. Same time I deposited 4.7 lakhs (Which is equivalent to 10,000 dollars) at 8.8 % interest in NRE FD. After 12 years, my dollar deposit reached 14314 $ and dollar appreciated from 47 to 67 Rs. Finally I got 9.59 lakhs. Whereas my Rupees account reached 13.36 lakhs which is equal to 19,937 dollars. Now you decide which is better.
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Posted On
1/8/2017
6:28:05 AM
by
Mom of two
hiho and Varghese...thanks. I was looking for exactly similar comments.So NRE FD is better, even with reduced interest rate of 7%?
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Posted On
1/8/2017
1:01:08 PM
by
hiho
@Mom of two- If you ask my honest opinion, I would advise you invest in the stock market, either directly or through mutual funds. You will get much more returns. But if you are still going for deposits, lets consider the two scenarios (Rs 6.8 lakh/ USD 10,000- USD@ Rs. 68) : i) NRE FD for 10 years @7%- Rs. 6.8 lakhs will become 13.38 lakhs. ii) FCNR for 10 years @3%- USD 10,000 will become 13,440. Returns from both deposits will be same if USD after 10 Years is equal to Rs. 99.5. So after 10 years, if USD is less than Rs. 99.5, NRE FD is better and if USD is more than Rs. 99.5, FCNR is better. Now decide it for yourself.
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Posted On
1/8/2017
1:08:09 PM
by
hiho
In the above calculations, I have considered that interest rate is compounded annually. In reality, it is compounded quarterly. The final values will be slightly different but not much.
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Posted On
1/8/2017
10:52:37 PM
by
Mom of two
well, my bank is giving 7.6 for NRE FD and 4.9 for FCNR. Still, I don't think USD will touch 99 Rs. I think NRE FD is better choice. Shares and mutual funds or real estate is not in focus for me.
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Posted On
1/8/2017
11:33:38 PM
by
Tsunami
Hi Mom of two,
Which is your bank ? Most of the Banks has reduced the interest rate during these weeks.
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Posted On
1/9/2017
12:46:40 AM
by
hiho
4.9% FCNR? I don't think it is right. Which bank?
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