How NRIs are Cheated with Fake Offers!

NRIs are Famous for their High Income but also Notorious for Wasting Money through:

  • Buying High Priced Houses back in India just to Lock them for 10 years 🙂
  • Investing in Over-priced assets 🙂
  • Buying stocks on high & Selling them on low 🙂

They are often the Guinea Money Pig for Bankers, Brokers, Relatives & help to Run the Local Economy.

Later they return back to India without any Passive Income & Continue to be the money slave. The current corona situation revealed the same. Isn’t it?

Literally they are Loosing Millions per Year through these under-estimated Investments. They don’t have Training! Bankers knows this & Here is another example of how they exploit NRIs.

The Problem

Recently one of our NRI Subscriber messaged me an Offer provided by Federal Bank to NRIs.

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Offer by Federal Bank

It also tries to Teach some Maths to the NRIs!

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The Questions

The question of our Subscriber is following:

  • Is this scheme a profitable deal?
  • What is the Returns %?

The Evaluation

Now let us evaluate the above offer. It says if we pay Rs. 6182 every month for 10 years (Rs. 74184 in 1 year for Simplicity) then you will get Rs. 10 Lakh on maturity!

Totally you are spending Rs. 7.4 Lakhs in 10 Years & the Interest Returns is Rs. 2.6 Lakhs.

For drill-down evaluation – you have to find out the Interest on Year 1, Year 2 etc. which is calculated as below based on 6% Interest.

six percent interest
6% Interest Calculation.


As you can see from above the Interest Rate applied is less than 6% only!

Clearly this is a NO GO option as the Interest Rate is very low for a very long investment period. Instead, you can go for a Corporate Bond of 10-12% Interest and gain higher returns.

Who is Profiting?

Clearly the Bank is Profiting from this Deal! They are locking down the NRI customer for a long period at low interest rate. Poor NRI!

Our Advice

If you are an NRI or High Income Person you are Dealing with High Amount of Money & You should be Master of Calculations! You should be positioning Investment Returns for 20-30% level so that you can be Super Rich & Financially Free. Download ROI Excel Sheet.

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