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Investing in Indian Banks

Mrs_pbradley936
Mrs_pbradley936 Posts: 14,573 Forumite
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
edited 28 May 2016 at 7:54PM in Savings & investments
On the Moneybox today at 12 noon BBC Radio 4 they were talking about investing in Indian Banks because they offer much higher interest rates than our banks. The chap said they lend it (in India at 14%). Anyway I had a look online and sure enough The Bank of India UK will give you 2.60% for a 5 year fixed term.


http://www.bankofindia.uk.com/english/interestrate_uk.aspx


Is this too good to be true? What are the catches?

Comments

  • colsten
    colsten Posts: 17,596 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    They weren't discussing investments, but savings.

    Several indian banks have UK subsidiaries with UK licences. You'll be safe to deposit money with them as long as they participate in the FSCS. Most of them do. It's safe to put £75K per individual into any financial institution that is part of the FSCS.

    2.6% isn't an unbeatable AER, as you can get more than that in instant access current accounts and in regular savers. A lot depends on how much you want to put away, and for how long.
  • Futuristic
    Futuristic Posts: 1,243 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    BOI is a member of the FSCS scheme so as above you'll be safe for £75k
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