Investments (please read the disclaimer)

Stock Market

Stock market again slipped to losses as global uncertainties increased. Corporate results were bad as expected and many players are hoping that all the bad news is already factored in the current prices. Global recession is stronger than expected and market may take some time to consolidate.

 

Real Estate

Head of major real estate player DLF has announced that they will cut prices by 20%. Already real estate market is showing significant slowdown. Real estate prices will pick up as and when economy again enters boom period. Speculation in real estate not advisable at this time, but buying homes for self use can be considered with some bargaining. Here give preference to completed projects and reputed builders. 

 

Gold

Gold strengthened thanks to higher global uncertainties. Investors normally rush to Gold as a safeguard against global uncertainties and inflation. Although inflation is much lower now, uncertainties increased.

Insurance/Mutual Fund

Opting for SIP (systematic investment plan) of Mutual Funds will be a good idea for next 2-3 years to take advantage of current low levels of market and also to avoid risk of bad timing. Please contact your SBI branch or nri.lhotri@sbi.co.in for details/investments.

Bank Deposits

All banks including SBI, are expected to reduce interest rate significantly over next few months as banking regulator RBI reduced key rates more than expected. All over the world interest rates are expected to soften in near term. It is a good time for NRIs to lock in to the present high NRE/FCNB/NRO FD interest rates before rates come down. Also NRI Interest rates offered by SBI is substantially higher than interest rates offered by good foreign banks in USA/UK. NRIs can also opt for DTAA benefit for SBI NRO deposit and earn better post tax returns.

 

NRI Interest Rates

From 1st Feb '09 - Interest Rates %pa	NRO Rs	NRE  Rs	USD $	Euro €	GBP £	Cand $	Aust $	Yen ¥
1 year to less than 2  years	8.50	3.73	2.98	3.28	3.48	3.30	4.84	1.98
2 years to less than 3 years	8.75	3.32	2.57	3.24	3.09	2.34	4.04	1.77
3 years to less than 4 years	8.50	3.68	2.93	3.54	3.41	2.64	4.46	1.83
4 years to less than 5 years	8.50	3.68	3.24	3.79	3.73	2.83	4.75	1.90
5 years (NRO upto 10 yrs)	8.50	3.68	3.45	3.98	3.98	2.99	4.88	1.96
1000 Days Deposit	9.00	Saving Bank Interest Rate -3.50%

 

Disclaimer -

Content on this e-magazine may not necessarily convey the views of the Bank, Branches or its Offices/Officials. Terms & Conditions Apply. The information and opinions contained herein are furnished from various sources without any liability on the part of SBI or its employees. All materials are for discussion purpose only and should not be treated as recommendation /advice/guarantee or opinion of a registered Financial Advisor.

 

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