3 Types of NRI Fixed Deposits That You Can Open

by Shashank Bhaskar Finance Adviser

Banking for NRIs is different than banking for Indian residents. You need to open an NRE or NRO savings account if you wish to continue to manage your finances in India. Moreover, you can also create fixed deposits out of the sums parked in your NRI bank accounts. NRI fixed deposits can help you earn greater returns on your savings and are regarded as safe forms of investment too. As an NRI, you can open 3 types of FDs. They are as under.

NRE fixed deposits

NRE stands for Non-Resident Ordinary accounts. In this account, cash is deposited in foreign currency, which is converted to INR. After you’ve deposited enough money into your NRE account, you can create an NRE fixed deposit out of the same. The deposit can be created online as well as by paying a visit to your bank. The tenure and interest rate on domestic FDs is different than that of NRE savings FDs and you can earn high interest rates on these deposits. Also, no charges are levied on this FD and it is freely and fully repratriable. Here are the interest rates offered by prominent Indian banks on NRE FDs.

Bank	Tenure	Rate of return (p.a.)
SBI Bank	1 year to 10 years	6.25% - 6.50%
Axis Bank	1 year to 10 years	6.75% - 7.10%
DBS Bank	1 year to 10 years	6.00% - 6.25%
ICICI Bank	7 days to 10 years	4.00% - 7.10%
HDFC Bank	7 days to 10 years	3.50% - 7.00%

NRO Fixed Deposit

A Non-Resident Ordinary Rupee or NRO Account is a rupee only account and ideal for NRIs who have income sources and investments in India. The savings parked in this account can be converted into NRO Fixed deposits. Typically, the bank provides the same interest rate on NRO bank FDs as the one provided on domestic FDs. Also, both, principal amount and interest earned on this FD is subject to TDS and other applicable taxes. Here are the interest rates on NRO FDs as levied by prominent Indian banks.

Bank	Tenure	Rate of return (p.a.)
SBI Bank	7 days to 10 years	4.50% - 6.25%
Axis Bank	7 days to 10 years	3.50% - 7.10%
DBS Bank	7 days to 10 years	4.25% - 6.5%
ICICI Bank	7 days to 10 years	4.00% - 7.10%
HDFC Bank	7 days to 10 years	3.50% - 7.00%

FCNR Fixed Deposits

FCNR stands for Foreign Currency Non-Repatriable(FCNR) Deposit. FCNR is essentially a deposit and not an account per se. The FCNR Fixed Deposit needs to be separately created and, unlike the NRE or NRO account FD; this deposit can be created out of different types of foreign currencies. The interest pay-out is also done in foreign currencies and you can create fixed deposits some major international currencies including USD, GBP, EUR, JPY, AUD, CAD, NZD, SGD, SEK, DKK and ‘SFr. Here are the interest rates offered by prominent Indian banks on FCNR India FDs.

Bank	Tenure	Rate of return (p.a.)
SBI Bank	1 year to 5 years	2.09% - 2.55%
Axis Bank	1 year to 5 years	2.65% - 2.75%
DBS Bank	1 year to 5 years	Depends on currency
ICICI Bank	1 year to 5 years	1.84% - 2.55%
HDFC Bank	1 year to 5 years	2.30% - 2.51%

Final word: Opening any of the above mentioned NRI fixed deposits is rather easy. You can go create the FDs through your NRI bank accounts. However, you need to check the minimum deposit amount and the terms and conditions for FD maintenance and premature withdrawal.