Non-Resident Indian Fixed Deposits (NRI FDs) are specialised financial instruments designed for individuals of Indian origin living abroad. These FDs cater to the unique financial needs and investment preferences of NRIs.

NRI FD Interest Rates

The interest rates for NRI FDs can vary based on the bank, tenure, and amount deposited. Typically, FDs for NRIs offer competitive interest rates similar to regular domestic deposits, making them an attractive investment option.

1. NRO FD Interest Rates

Bank

Tenor

Interest Rates (p.a.)

SBI

7 days - 10 years

3.00% - 7.10%

HDFC Bank

7 days - 10 years

3.00% - 7.70%

Union Bank of India

7 days - 10 years

3.00% - 6.70%

DBS Bank

7 days - 10 years

2.50% - 7.50%

Disclaimer: The interest rates mentioned are subject to change at the discretion of the issuer.

2. NRE FD Interest Rates

Bank/NBFC

Tenor

Interest Rates (p.a.)

Bajaj Finance Ltd

1 year - 3 years

7.11% - 8.30%

SBI

1 year - 10 years

6.80% - 7.10%

HDFC Bank

1 year - 10 years

6.60% - 7.70%

Union Bank of India

1 year - 10 years

6.30% - 7.00%

DBS Bank

1 year - 10 years

5.00% - 6.50%

Disclaimer: The interest rates mentioned are subject to change at the discretion of the issuer.

3. FCNR FD Interest Rates

Bank

Tenor

Interest Rates (p.a.)*

SBI

1 year - 5 years

6.80% - 7.10%

HDFC Bank

1 year - 5 years

4.00% - 5.60%

Union Bank of India

1 year - 10 years

3.80% - 5.00%

Disclaimer: *The above mentioned interest rates are applicable only to FCNR deposits in United States Dollar (USD). The rates are subject to change at the issuer’s discretion.

Features and Benefits

NRI fixed deposits offer several benefits for individuals residing outside India who wish to invest in a secure financial instrument. Some key advantages include:

Choice of Currencies

Many banks offer deposits in various foreign currencies, allowing you to choose a currency that aligns with your financial preferences and goals. This can help mitigate currency risk and provide flexib Read Moreility. Read Less

Easy Repatriation

Allowa easy repatriation of both principal and interest earned. This flexibility is crucial if you may need to transfer your funds back to the country of residence.

Tax Benefits

As per Section 10(4) of the Income Tax Act, 1961, NRE FDs are not taxable. However, tax implications can vary, and it's essential to understand the tax regulations in both your home country and India.

Diversification of Investment Portfolio

Including NRI FDs in an investment portfolio allows you to diversify your holdings, spreading risk across different asset classes and currencies.

Types of NRI Fixed Deposits

There are- majorly three different types of NRI FDs that cater to various needs -

1. NRE (Non-Resident External)  FD

Denominated in foreign currency, the interest and principal are freely repatriable, making it suitable for NRIs who want to maintain their overseas earnings.

2. NRO (Non-Resident Ordinary) FD

Maintained in Indian Rupees, the interest and principal may have restrictions on repatriation, and it is suitable for income earned in India by NRIs.

3. FCNR (Foreign Currency Non-Resident) FD

Held in foreign currency, these deposits are similar to NRE fixed deposits but offer higher interest rates. The principal and interest are fully repatriable.

 

Each type caters to specific financial needs and considerations of NRIs.

 

It's crucial to carefully review the terms and conditions, interest rates, and any associated fees or penalties before investing in NRI fixed deposits. Additionally, staying informed about regulatory changes and economic conditions can help make prudent investment decisions.

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.

FAQs

Can NRIs avoid paying double tax?

Yes, you can avoid paying double tax on income earned in the source country and residence country. You will be required to claim benefits under the Double Tax Avoidance Agreement (DTAA) for the same.

Is PAN mandatory for NRI FD?

Yes, providing a PAN is mandatory when investing in NRI fixed deposits, and when filing income tax returns related to your FD.

Is TDS applicable on NRI FD?

Yes, Tax Deducted at Source or TDS is applicable for NRI fixed deposit. However, there are different rules for income tax for NRI fixed deposits.

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