NRI Fixed Deposit

Non-Resident Indians (NRIs) can opt for Fixed Deposits (FDs), which are a safe and reliable form of investment. FDs are also a smart mode of investment for NRIs who want to diversify their portfolios. As an NRI, you can consider investing in FDs as it provides guaranteed returns through high NRI interest rates. FDs are also a safe investment vehicle as the principal investment amount is not prone to market volatility as compared to equity funds or other aggressive, risk-prone investment instruments.

Why should NRIs opt for FDs in India?

According to various reports from the World Bank, India is among the top countries for receiving remittances. It received US$70 billion as remittances from NRIs in 2018. The report from the World Bank, however, also underlines that an amount of around Rs 800 billion is parked in Non-Resident Ordinary (NRO) accounts as saving account balances. Being saving accounts, it does not provide good returns. So, NRIs could consider investing in FDs, which provides higher interest rates. Another crucial factor is the global market volatility, which has an adverse impact on investments. But, investments in FDs back home cushions an NRI from market volatility.

Can NRIs avail of a special FD scheme?

As an NRI you can easily invest in Fixed Deposit for NRIs, available on Finserv MARKETS. This FD provides a slew of benefits like high returns up to 8.95% along with flexible tenor options ranging from 12 months to 36 months. It also provides multi-deposit and easy renewal facilities. You can invest in this FD from your NRO account. Funds from Non-Resident External (NRE) bank account are not accepted for this FD. Overseas Citizen of India (OCI) and Person of Indian Origin (PIO) can also invest in this FD scheme. An NRI can use a cheque or RTGS/NEFT from NRO bank account to make payment. You must, however, remember that payment through demand draft, debit card, IMPS or UPI is not accepted.

What are the types of interest payouts available to NRIS?

NRIs can avail the options of cumulative and non-cumulative interest payouts on their FDs. Cumulative FDs provide interest on maturity, while non-cumulative FDs provide the option of receiving interest on monthly, quarterly, bi-annual or annual basis. Cumulative FDs provide higher interest rates as compared to non-cumulative Fds.

Benefits of FDs for NRIs

  1. High interest rate: NRIs can receive a high interest rate of up to 8.95% on their FDs. On Finserv MARKETS, NRIs can invest in FD for NRIs which provides an interest rate of up to 8.60% for a new customer. For existing customers, this FD provides up to 8.85% interest on tenors ranging from 12 to 36 months, while for a senior citizen NRI, the rate of interest is up to 8.95%.
  2. Options for multi-deposits: As an NRI you have the option of investing in multiple NRI fixed deposits with a single cheque.This saves you from the hassle of filing different application forms and making separate payments.
  3. Auto renewal of FD account: You can also avail the benefit of auto-renewal of your NRI FD account in India at the time of investment. Fixed Deposit for NRIs on Finserv MARKETS provides 0.10% renewal benefit.
  4. Flexible tenors: As an NRI, you can avail the facility of flexible tenors. You can select tenors, ranging from 12 months to 36 months. If you want to invest for a longer period, then you can opt for laddering of your fixed deposits. This provides higher returns.
  5. Forecasting of returns: You can also avail the benefit of instantly calculating returns on your FDs through an online interest calculator. You can easily use this simple and convenient tool by providing the amount to be deposited, the deposit term and the interest rate being offered. On Finserv MARKETS, you can use the Bajaj Finance Fixed Deposit online calculator to evaluate your returns before investing. For NRIs investing in the Fixed Deposit, the interest rate is calculated by the rate of interest, tenor and frequency of the selected payouts.
  6. Tax benefits: NRIs can claim tax benefit in their FDs under Double Tax Avoidance Agreement (DTAA). As an NRI, you must remember that your interest amount is subject to Tax Deduction at Source (TDS). A TDS of 31.2% is charged if annual interest on the FD is less than Rs 50 lakh. For annual interest ranging from above 50 lakh to less than one crore a TDS rate of 34.32% is applicable. For annual interest of more than Rs 1 core, the government charges TDS of 35.88%.
  7. Highest safety of investment: As an NRI you can rest assured that your investment amount is provided with the highest safety. Fixed Deposits available on Finserv MARKETS has the highest stability rating of ‘FAAA’ by CRISIL and ‘MAAA’ by ICRA respectively.
  8. Safety of principal amount: As an NRI you can safeguard your investment from volatility in the market by investing in a FD account. The Fixed Deposit for NRIs is also not affected by an intermittent interest rate movement, or the change in interest rates, as your investment has been locked-in for a specific tenure.

General FAQs

Q. Can an NRI avail of loan against the FD?

A. An NRI cannot avail a loan against FD.

Q. Does an NRI require a referral for opening a FD account?

A. No referrals are required for opening a FD account.

Q. Can an NRI avail of premature withdrawal of FD?

A. An NRI can withdraw the FD before completion of the tenors, subject to certain conditions. In the case of Fixed Deposit for NRIs on Finserv MARKETS the lock-in period for the FD is three months. For premature withdrawals ranging from three to six months, no interest is payable on the deposit. For the withdrawals above six months but less than the specified tenor, the interest payout is 2% lower than the applicable interest rate.

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