Questions:It looks like banks give you an interest rate of 12% for 5 year fixed deposits in Nepal. How long is this interest rate expected to  be so high? 5 years, 10 years, 40 years?

Are there companies that provide health insurance in Nepal? How good are they? What's the cost? 

Long Story: For the last few years I have been seriously considering returning to Nepal for good. I've lived in the US for 12 years. Came here when I was 18 for my undergraduate. I have a Masters Degree and 6+ years of full-time work experience. My work is in a pretty specialized field and as far as I know I won't be able to find any work in my field in Nepal .I didn't want to return unless I had decent amount of savings. These have been stopping me from going back. I was fortunate enough to get a good job right out of college. I've been living in one of the cheapest cities in the US and I am bit of a minimalist so every year I have been saving some money. In a few weeks I will hit my target saving of Rs 50 lakh. It seems banks give you an interest rate of around 12% yearly on 5 year fixed deposits in Nepal. That would mean that I would be making Rs 50,000 (fifty thousand) monthly in interest in Nepal. I have a home in Nepal (parent's home but I am the only son). I don't have any aspirations of marriage or having kids.  I am pretty sure that I can live a comfortable life in Nepal with 50,000 monthly for 1 person. My plan is to keep on putting the Rs 50 lakh in a fixed deposit and live off the interest rate for the rest of my life. My parents are middle-class but they are financial stable enough that they can support themselves for the rest of their life barring medical emergencies. However, I am concerned about the future interest rates in Nepal ,will the interest rates continue to be so high for the next 50 years? What about the health care costs? How would someone like me prepare for medical emergencies (for myself and my parents) in Nepal. Is there health insurance in Nepal? How good are they?

Interest Rate Example: http://www.nbbl.com.np/interest.php
Comparison: http://www.nepali.im/discussion/19/best-interest-rate-saving-account-in-nepal

I don't trust banks in Nepal to deposit 5 million rupees. Does anybody know if your deposits are insured by government or a third party, like FDIC in USA? If so, I would fly before dashain and won't return.

Couple Years ago i asked my Father why he invested in Land and gold other than just putting the money in the bank and get easy 12% return on the money as an easy return. Here is what his responses were

1. Interest Rates are very volatile if they are paying you 12% now, couple year later it could be as low as 5%.

2. Financial institutions in Nepal could not be trusted. They can go down or get confiscated by the government any time.

3. The biggest threat is from the Kidnappers and the political hoodlums. Once they know you have couple Karods in liquid cash in the bank, you are prone to become a Kidnap or extortion victim. In some cases even the bank employees tell the extortionists how much liquid cash you have available in the bank.

4. If no of those three points applies to you then the local and global inflation makes your cash lesser and lesser each year.

It seems you have not factored in some variables:

If i were you I wouldn't trust interest as my sole source of income. Do something on the side to hedge the risk. If no bank is too big to fail in the US then why would it be different in Nepal? US at least has FDIC that insures the money up to a certain limit.

I have a different opinion from the rest here regarding financial institutions and their safety in Nepal.

bump..