Term deposits pays 9% interest?

Question

Hi,
I'm currently 20 years, i wanna start thinking of my future etc. I'm still in college but i want to start investing for my long run. Icici bank (international bank) pays 9.5% interest on 365 term deposit which i think is really good compare to other banks here in Canada. I'm not sure how I'm going to do this so this is why I'm asking. so i have few questions.
I basically want to put $300/month for next 30-40 years. if i keep adding $300 for 30 years I'm looking for about $553,342. after interest etc. This number is based on 9% interest. it would be easy to determine how much it would be exact if it was a savings account. but since this is a term deposit how will it work out? Like Should i save $300 until end of the year and put it all at onces or can i still put $300 in my previous term deposit.
Not sure how to explain this.

@ Joe,
There is a branch where i live and you have a choice of opening the account in dollars or rupees. i will go ask them either way, thanks for the heads up.

Answer 1

you may be getting in over your head.....
you do realize that your term deposit will be denominated in a foreign currency (that may be good or bad)... but my point is you are talking about using a foreign bank, in a foreign currency to hold all the money you can save for your life...

what if that currency goes down? what if the foreign government becomes unstable (granted india is stable.. but over the next 30 years who knows)... what if India experience hyper inflation... ? do you realize what will happen to your entire savings???

dont put all eggs in one basket... terrible cliche but true...
and don't be tempted by the 9% number... there are hidden risks...

if you are aware and accept them thats your call..

as for the rest...A term deposit will reset the rate at the end of the term... maybe higher.. maybe lower... impossible to tell for certain at this point. ... also .. term deposits usually close immediately... so each 300$ deposit would have its own term

Answer 2

I visited the ICICI bank website. The bank is in India. They give out high interest rates if you have an account in rupees. You'd have to convert your Canadian dollars into rupees. However I expect rupees to drop in value compared to Canadian dollars over the next year. So when you convert your rupees back into Canadian dollars, you might have less money than when you started. You probably will not get 9.5% on your money. However, if you don't share my pessimism about the rupee, go ahead and invest.

Addendum: I went to ICI Bank Canada. They have deposits in Canadian dollars, too. But they don't seem to offer 9.5% on Canadian dollars. You should also check to see what sort of insurance they have, if the bank goes bankrupt.

http://www.icicibank.ca/

Answer 3

Im assuming you're speaking approximately bank cards given that I dont realize of ANY financial institution that bills 29% curiosity on a mortgage. How can they? Because they are able to, and a few individuals are dull ample to pay it. But if you happen to pay your bank card off each month, you pay zero curiosity. I use my CC all the time however have on no account paid even a penny of curiosity given that I pay it off each month. Been doing it for approximately two decades now.

Answer 4

that's better than the stock market.