How Can NRIs Open FD in India?

Fixed deposits are one of the safest and preferred investment instruments in India. But is it possible for NRIs to open FDs in Indian currency (with Indian banks)? Read on to know more about fixed deposit options for NRIs.

FDs offer investment avenues at fixed interest rates that make it an attractive option for investors. Since FD rates in India for NRIs are comparable to those for residents, NRIs often choose to open FDs in India than keeping their money idle in NRE or NRO accounts.

Let's look at the fixed deposit options available for NRIs in India:

NRE Fixed Deposit

NRE fixed deposits allow you to invest your foreign currency income in INR to earn fixed and attractive returns. Some key highlights include:

• Any convertible currency (foreign earnings) can be used to open the NRE FD account.
• Full repatriation of principal, as well as the interest amount, is allowed.
• Interest earnings are tax-free in India.
• Flexible tenure from 1 – 10 years available.
• Facility to avail loan against the deposit.

NRO Fixed Deposit

NRO fixed deposits allow you to invest your income from India in INR to earn fixed and fairly higher returns, at par with the interest rates available for Indian residents.

• Money earned in India through rent, interest, dividend, sale of a property, etc., can be used to open the NRO FD account.
• Only the interest earned is fully repatriable.
• TDS (Tax deducted at source) is applicable to the interest earned.
• Flexible tenure from 7 days – 10 years available.
• Facility to avail loan at attractive interest rates against the deposit.

How to Open NRI FD in India?

You may apply for an NRI FD through the bank’s website, the internet banking interface, requesting a call back by the bank’s representative, or by physically visiting the bank. Here are a few crucial steps.

• Step #1: The very first thing you need to figure out is which scheme will suit your requirements – NRE fixed deposit or NRO fixed deposit.

• Step #2: Decide upon how much you wish to invest in a fixed deposit and get an idea of the expected return for the scheme chosen by you. Many banks provide an online NRI FD calculator that generates the maturity amount based on type, date, and amount of deposit by you.
• Step #3: Submit the duly filled application form along with the relevant documents such as a copy of passport, visa, work permit, address proofs, etc. The application can be made both in online and offline mode.
• Step #4: The processing is quick, and you may expect to receive a confirmation within 1-2 days of submission of the application.

NRI FDs: Invest Safe with Higher Returns

Both NRE and NRO FDs are considered safe since the returns are fixed. Also, they can deliver higher returns than a simple savings account. Choose one based on your needs and other factors such as the source of income and more.