Dear Friends,

I was shocked that after almost 2years i only got 10€ interest after tax for a sum of 40 Lkhs (€60000) with Sparkasse normal savings not fixed,so now i would like to open up an NRE account for which the interest is exempt from tax in India.
Does anyone know which bank in India gives good interest rates on NRE savings.A google search gives ICICI on top but its customer service division is horrible after one opens a account.
If anyone got bad experience with ICICI please share.

Thank You

Try to fix a savings with Festgeld/Tagesgeld etc, you will get good interest. Last year interest rate was upto 5.5%. You miss the good chance. Now a days, interest on Festgeld are 3 to 4%.

What our clever Mr. Prasad (Lallu?) is looking for a shrewd way to skirt IncomeTax, which is not possible with any Festgeld/Tagesgeld account in Germany.

The best option IMHO would be to go for FCNR deposit in India, the interest is tax-free and you can keep the money in foreign currency so that you don't lose money over currency fluctuation.

If you opt to keep your money in australian dollars you would get interest rate upto 6.58% p.a. that also tax-free :-)

http://www.hdfcbank.com/nri/accounts/foreign_currency_deposits/fcnr_deposits/fcnr_deposits_interest.htm
http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/int_FCNRfd.htm