Skip to main content

Everything an NRI needs to know about FD

Non-Resident Indians (NRIs) looking to diversify their portfolios, keep looking for smart investment opportunities to grow their savings. As an NRI, you can always consider investing in fixed deposits offering guaranteed returns with attractive NRI interest rates.
1.      Two types of Indian Rupee Fixed Deposits:

NRE Fixed Deposit

·      Can be opened jointly with NRIs and Persons of Indian Origin (PIOs)
·      Principal along with interest are completely repatriable
·      Interest income on balances of the NRE Fixed Deposit is exempt from income tax
·      Tenor ranges from 1 to 5 years
·      The deposit is automatically renewed on maturity in the absence of any other instruction

NRO Fixed Deposit 

·      Can be opened jointly with Resident Indians. Your family in India can be a joint account holders.
·      An ideal investment option for savings and income arising out of India
·      Tenor ranges from 7 days to 5 years
·      Interest on the deposit is credited every three months or at the time of maturity

2.      Repatriation 

In NRE FDs, Principal & Interest are fully repatriable but in NRO FDs RBI allows repatriation only for i) current income ii) up to USD 1 (one) million per financial year (April-March), for any bonafide purpose after payment of applicable taxes.

3.      Minimum Deposit Amount

If it is a Fresh deposit the minimum deposit amount is INR 25,000 but if you’re adding on then the amount is INR 10,000
4.      Tax Redemption
Under the current Double Taxation Avoidance Agreement (DTAA) provisions, NRI customers will be entitled to lower withholding tax (TDS) subject to fulfillment of certain conditions.  Compared to the regular NRO Account or Fixed Deposit, with the DTAA benefit, you can now enjoy a higher yield in the concessional rate of Tax Deducted at Source (TDS) on the interest of your NRO Account or Fixed Deposit.



The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.

Comments

Popular posts from this blog

Pink City Jaipur Gets UNESCO World Heritage Tag!

The Walled City of  Jaipur,  popularly known as the 'Pink City' is famous for its iconic architectural legacy and vibrant culture, on July 6 made its entry into the UNESCO World Heritage Site list during the 43rd Session of the World Heritage Committee held at Baku, Azerbaijan. A World Heritage Site is a location having an “Outstanding Universal Value,” and has common significance for present and future generations of all humanity. The city was proposed to be nominated for its value of being an exemplary development in town planning and architecture that demonstrates an amalgamation and important exchange of ideas in the late medieval period. The city of Jaipur was founded in 1727 AD under the patronage of Sawai Jai Singh II. It serves as the capital city of the culturally-rich state of Rajasthan. Interestingly, this is India’s 38 th inscription into the World Heritage list, India already has 37 world heritage sites, that include 29 Cultural properties, 7 Natural propertie...

Tarnetar Fair

One of the many vibrant festivals of Gujarat, Tarnetar Fair is the annual festival that takes place in Sundernagar,  Gujarat— a tiny village, about 200 km away from Ahmedabad.  This is inspired by  Draupadi's  swayamvara , and is a celebration of ethnic Gujarat’s folk-dance, music, costumes, and the arts, centered around young tribal men and women seeking marriage partners. Here many kinds of folk dances are performed; by far the most popular is the  raas , in which dancers hold sticks to clack against those of other dancers. As many as one to two hundred women perform  ramadas  in a single circle, to the beats of four drums at a time and the tunes of  jodia pavas  (double flutes). Rabari women of nearby Zalawad perform the famous circular folk dance called  rahado . Their marital status is indicated clearly by their costumes; a black  zimi  (skirt) means she is married. But if a woman is wearing a red  zimi , it means s...

5 FEMA Rules Every NRI Should Know

The Foreign Exchange Management Act (FEMA) is a law enacted by the Government of India in 1999 to control the flow of foreign currency across Indian borders.FEMA aims to facilitate external trade and their payments in India, a systematic improvement and continuation of foreign exchange in the Indian market.It’s important for Indians working abroad to understand FEMA rules for NRIs very carefully since it can affect the way they can send and receive funds from India.Let’s look at five FEMA Regulations for NRIs: 1.        Maintaining a Bank Account You need to operate bank accounts that are specifically designated for NRIs. FEMA rules for NRIs do not allow holding a savings bank account.  There are 3 major types of accounts as stipulated by the Reserve Bank of India (RBI)that you can open: - NRO account  - If you want to send money earned abroad back to India. - NRE account  - For repatriable or moveable assets like securities and cas...