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.
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.
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.
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.
A. An NRI cannot avail a loan against FD.
A. No referrals are required for opening a FD account.
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.