Fancy getting 8% on your cash saving?

Monday, 26th March 2018 11:26 - by Ranjeet Singh

I know that it’s hard to believe but there are some places in the world where investors are getting 8% on their cash savings! I know this because I am one of them. Now I’m the last person that would usually advocate cash savings because interest rates are so poor and with inflation of 2.5% you would normally have nothing left over which is why I always tell my clients to stay clear of them. However, when interest rates are touching 8% and your money is accessible after only one year then it becomes a different ball game.

And so, where I am talking about exactly? – well you may be surprised but it’s actually in India. Now remember, as I always say with my articles I am not advocating, encouraging, recommending, advising, suggesting (or any other -ing that you can think of) that you should open an Indian bank account.

However, what I am saying (damn that’s another -ing!) - what I would like to say is that if you have a financial advisor then it may be something that you may want to look into. Let me tell you the reasons why.

Well firstly it’s because no longer do you need to catch a flight to India, watch a dodgy Bollywood film for the entire duration, and then open a bank account in the hustle and bustle of New Delhi. You can open a bank account right here in the UK with any number of branches of Indian banks popping up in key towns. And if you don’t know where to look I can show you where, which type of account to open and how to do it.

Also, don’t worry about the exchange rate. Yes, you have to convert your pounds to rupees but you can fix a forward exchange rate so that eliminates any currency fluctuations. On the other hand, you may wish to take a punt on the rupee strengthening in which case you could be looking at closer to 20% on your cash – imagine that!

The second reason to consider investing in India is because India is booming right now. With a population of more than 1.4billion and growing it’s not just the sales of beds that is impressive. The entire economy is really taking off. Growth has slowed a little in recent years (it used to be double digit) but still stands at an impressive 7.5% per annum.

The Bombay Stock Exchange is also pretty exciting, having risen from 18,000 in 2013 to over 36,000 in 2018. In fact, it’s only recently dipped back in line with the recent market volatility that we have seen. The truth is that if you are going to invest in equities and are prepared to assume that risk (by the way I think the market could be in for a correction so watch out) then investing in India is as good as anywhere else.

I talk about India and why it’s such a great place to invest not because I’m from there (I’m from sunny Coventry), or even that my parents are from there (they are from Panjab, which is technically India but they regard themselves as Panjabi, not Indian); no, the reason is simply because it’s still an untapped market. Investors in the UK don’t know how to invest in India and that unknown is leaving a big gap in the market place – as more people realise the potential of India the margins will of course be squeezed so the time to start investing is now. It’s still not too late.

Of course, there are risks like anything but then so too was buying Maplin shares or ToysRUs. Life is not about risk but how you manage it and for me personally getting 8% on my savings makes me a feel a little more comfortable. I think it would for most.

Watch my video that I filmed this morning where I explain in more detail https://youtu.be/BPazpr_gTqc 

If you think this article might be of use to somebody that you know then please share it. The UK investor population deserves to know that there is more out there than the high street banks want us to believe.

As always if you want more information reach out to me at rsingh@londonstonesecurities.co.uk

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.