POSTED BY April 11, 2012 2:19 am COMMENTS (9)ON
Few days back I came across one advertisement from SBI Bank in local marathi newspaper called “sakal”. They have FD schemes going on for NRE and there are interest rates for different time slabs. For 8 to 10 year FD, In one column the interest rate is shown as 9.25% and there is another column next to it where it is shown as “14.95%” at the end of the slab.
Those who can read marathi can check here
http://220.127.116.11/Sakal/29Mar2012/Enlarge/PuneCity/index.htm ( at the bottom right corner)
Also, NRE account does not have any tax liability in india.
My question is that 14.95% interest rate is possible and true OR this is some kind of mathematical trap