SBI Maxgain and Recurring deposit

POSTED BY Ela Selvaraj ON June 3, 2013 10:20 pm COMMENTS (2)

Hi-hi,

I am Ela Selvaraj, an NRI from Germany. I recently opted for home loan transfer from Axis to SBI Maxgain for 61.5 Lakhs and EMI would be 66,500 rs. I decide to save some money for myself so thought of opening the recurring deposit for 30,000 rs for next 10 years. But I do also get my SBI Maxgain loan in few days. I calculated the maturity amount in SBI which will fetch me around 57.5 lakhs at the end of 10 years (36 Lakhs principal amount and 21.5 Lakhs interest), as an NRI do I need to pay tax on the interest amount I earned via RD? 

Also, advice me is it a wise idea to put my money in Maxgain and not in RD? As bcoz, the interest rate for Maxgain is 10.10% and for RD is 8.75%. I would really appreciate if you could give me your suggestion in saving some money for future.

Thank you

Ela Selvaraj

2 replies on this article “SBI Maxgain and Recurring deposit”

  1. Ashal Jauhari says:
    June 3, 2013 at 11:10 pm

    Dear Ela, please park all the free money into Max Gain & from there use it as & where you want to.

    thanks

    Ashal

    Reply
  2. CA Karan Batra says:
    June 3, 2013 at 10:31 pm

    Firstly, you would be required to pay Tax on the Interest you earn from your RD

    Secondly, when the Interest Rate on SBI Max Gain is 10.10% and RD is 8.75% it makes sense to keep your money in the account which offers a higher interest rate i.e. SBI Max Gain

    SBI MaxGain offers you the same flexibility of withdrawing the funds as is offered by RD..

    So in my opinion, depositing amount in Maxgain is better…

    If you still have a belief that depositing in RD is better, you can deposit some amount in RD and rest in Maxgain…

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.