Hi Knowledgeable people,

My plan is as follows.
Fixed Deposit in Nepal for 5 years.
Amount - 20,00,000 (bis lakh)
What is the best interest and where?

Regards,

Not sure about banks but private finance companies offer upto 10 or 12 percent in Ktm. But as they say everything is risky and the inflation makes the interest rate is high so in 5 years your 20 lakh may not have the same buying power even with the added interest.

Nepal ma life insurance garnu for that amount of money, you'd prolly get a better deal out of it then to invest in a fixed deposit - banks ( like himalayan or nabil) pays anywhere between 3.5- 6 at the most, they are currently running a campaign on which gives about 10% for 6 mos, and a year long fixed deposit- not sure if that is still valid though.. But finance pays about 10 - 13% but as mentioned above, its riskier

Good luck
Mercynova

Better invest in stocks in Nepal. Average return is 20-30% and relatively less risky. You can double your investment in 5 years.

Even big banks like Nabil and Himalayan banks are giving 9-10% interest rates in Fixed deposits these days, that's a lot.. i don't know why the interest rate has gone up so much in nepal.

if you deposit 1 karod, that's 10 lakh per year free money !

Well Nepal's inflation rate is at around 7 percent. So when you average things out the gains is 2-2.5 percent only.

10 percent return is way too small considering Nepal's inflation rate. I'd invest 20 lakh rupees to buy a piece of land instead. Your investment will have at least doubled in 5 years as long as you've bought it in decent area (outer ringroad areas like Chapagaun in Lalitpur for instance).

@maxpayne
The inflation rate in Nepal is way below than what you mentioned.
FYI
http://www.tradingeconomics.com/nepal/inflation-cpi

NRB estimated the inflation target to 7.5% for Fiscal year 16/17, that was the optimistic estimate. Unless something changed drastically, I dont see how we will be at 3.5 this year. It would be great if that is the case though.

http://kathmandupost.ekantipur.com/news/2016-07-14/govt-releases-monetary-policy-for-fy-201617.html

Full report from NRB:
https://www.nrb.org.np/ofg/monetary_policy/Monetary_Policy_(in_English)--2016-17_(Full__Text).pdf

Hi micky_mouse,