A Brief On NRI Fixed Depositby Giselle Lobo Writer & Blogger
Banks offer several products to their customers for investment. It encourages you to save money and store it away from the public eye. A Savings Account is one of the popular instruments in India for residents and Non-Resident Indians. It earns you interest while safeguarding and liquidating funds whenever required.
Besides Savings Accounts, investing in NRI Fixed Deposit helps you earn higher interest. It is an excellent tool for Indians living overseas. Depending upon the investment type, the returns are tax-free. Some Fixed Deposits also allow you to invest in foreign currency, protecting you from fluctuations. You get several investment options under this category.
NRO Fixed Deposit
This account lets you earn higher interests on the income earned in India while you are overseas. Open it jointly with the resident or Non-Resident Indians while filling the application form. You grow your savings with competitive interest rates from 2.50% for seven days to 5.50% for five years and above.
NRE Fixed Deposit
It is an NRI Fixed Deposit Account allowing you to earn high interest on your foreign currency deposits. The funds are fully repatriable. The interest earned is tax-free in India, starting at 3.15% for less than INR 2 crore for one year to 375 days. It goes up to 4.35% for a tenure of five years and above.
While working or living abroad, you still earn tax-free income in India with a Foreign Currency Non-Resident Fixed Deposit Account. It is an NRI FD type allowing you to deposit funds across six foreign currencies and earn interest at competitive rates.
The currencies you deposit include US Dollars (USD), British Pound Sterling (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), Singapore Dollars (SGD), and Hong Kong Dollars (HKD). You earn an interest of 0.01% for a tenure of one year.
When you open an NRI FD Account, you aim to keep your funds secure and earn interest for the specified tenure. The more you invest, the higher are the chances of earning returns. These also work as emergency funds and help you meet your expenses. Here are the advantages:
An FD Account keeps your funds safe while allowing you to earn higher interest than other products. It encourages you to generate wealth in India while overseas and use the funds upon your arrival.
Certain types of FD Accounts are exempt from tax deductions. For example, the Non-Resident External or NRE FD Account does not attract taxes on the interest earned. When you open an NRI Fixed Deposit Account, you get a nomination facility on all of them.
This account offers multiple avenues to invest your money and earn decent returns. Several banks provide NRI investment products to help them invest in India in Mutual Funds and other market securities.
Created on Nov 15th 2021 04:41. Viewed 111 times.