Types of NRI Fixed Deposits You Can Open

by Giselle Lobo Writer & Blogger

Banking for Non-Resident Indians is different from that of the resident Indians. You need to open an NRE or NRO savings account if you want to continue managing India's finances. Moreover, you can also create fixed deposits out of the sum parked in the NRI accounts. The NRI fixed deposit helps earn higher returns on your savings and are considered safe investments too. As an NRI, you can open three FD types. They are as follows –

NRE fixed deposits

NRE which stands for Non-Resident External accounts has cash deposited in foreign currency, converted to INR. Once you have deposited enough funds into the NRE account, you can create NRE FD off the same. The deposit gets made online or by visiting the branch. The tenure and interest rates on domestic FDs are different from the NRE FDs.

NRE FD interest rates are higher. Also, no charges get levied on the FD and fully repatriable. The best banks offering NRE FDs are DBS, Axis Bank, SBI, HDFC, and ICICI Bank.

NRO fixed deposits

The Non-Resident Ordinary Rupee is a rupee account and ideal for those who have income sources and India investments. The savings parked in such accounts get converted to NRO FD. Generally, the bank offers the same interest rates on the NRO bank FDs as the one provided on regular FDs.

Both the principal amount and NRO FD interest rates are subject to TDS and other applicable taxes. The prominent banks offering the best interest rates are Axis Bank, HDFC, DBS, and ICICI Bank.

FCNR deposits

FCNR which stands for Foreign Currency Non-Repatriable deposit is essentially a deposit and not an account. The FCNR deposit needs to get separately created, and unlike the NRE or NRO FD, this deposit gets created out of different foreign currencies. The interest pay-out also gets done in foreign currencies, and you can start the FD with major international currencies, including USD, GBP, EUR, JPY, AUD, CAD, NZD, and SGD, SEK, DKK, and SFR. The best banks offered FCNR deposits are SBI, Axis Bank, DBS, HDFC, and ICICI Bank.

Opening any of the mentioned NRI fixed deposit is easy. You can also create the FDs through the NRI bank account. However, you need to check the minimum deposit amount and the terms and conditions for FD maintenance along with premature withdrawal.