Snapshot of the 4 Popular Saving Schemes for NRIs – Features, Benefits & Interest Rates

Are you an NRI looking to invest surplus funds? Or looking for the best ways to save your income generated in India? Check out the different types of deposit schemes available exclusively for NRIs. As an NRI, you can choose any of these savings schemes available at banks in India and start building your corpus in your home country.

Fixed Deposit Schemes – A Safe and Guaranteed Way to Build your Corpus

Just like regular fixed deposits, NRIs can open special fixed deposit schemes to park their funds. Fixed deposits are considered as one of the best ways to save, as the interest rates are fixed and are not dependent on the fluctuations of the market.

NRIs have different types of fixed deposits to choose from. These fixed deposits are offered by all leading banks in India, and all you have to do is show proof of your NRI status (visa, current resident address), and you can start your savings immediately, without any hassles. Let’s take a look at the different fixed deposit schemes offered to NRIs.

List of the Best Saving Schemes for NRIs and Current Interest Rates:

●        NRE Fixed Deposits

This is one of the most popular fixed deposit saving schemes for NRIs. You can open a fixed deposit on your NRE (Non-resident External) saving account. You can invest in NRE fixed deposits only using INR, as the account is held in Indian rupees. You can choose your preferred tenure, based on your investment horizon. The interest on NRE account is different from domestic FD rates.

Salient Features:

o   Both the principal and interest earned is fully repatriable

o   Tax-free savings

 

●        NRO Fixed Deposits

As the name implies, this is a fixed deposit scheme that you can open with your NRO (Non-Resident Ordinary) account. Just like the NRE fixed deposit, you can deposit only in Indian rupees, and the interest rates are different from domestic FDs.

Salient Features:

o   The principal is non-repatriable, but the interest earned is repatriable

o   Tax-deductible

 

●        FCNR Fixed Deposits

Foreign Currency Non-Resident (FCNR) fixed deposits allow NRI investors to park their surplus funds in foreign currency in India. You can save your money directly in your preferred currency like USD, GBP, Euro, CAD, SGD, JPY, and other popular currencies.

Salient Features:

• Eliminates the risk of fluctuating exchange rates
• Maturity term ranges from one to five years
• The interest rate depends on the currency in which you are maintaining the account

 

●        RFC Fixed Deposits

Resident Foreign Currency (RFC) fixed deposits are available to cater to the saving needs of NRIs who have come back to India and have plans of reclaiming their NRI status soon. You can park your savings in your preferred foreign currency (like USD, Euro, GBP, and JPY) and transfer it to your NRE/NRO account, once you get back your NRI status.

Salient Features:

• Both principal and interest earned is fully repatriable
• Eliminates exchange rate fluctuations
• The interest rate depends on the currency in which you are maintaining the account

Choose the Right NRI Fixed Deposit Scheme and Grow Your Wealth

These four types of NRI fixed deposits offer you a hassle-free and smart way to build your savings in India. Check out the features and interest rates, and pick the right NRI FD scheme that offers you maximum returns.

“The contents of this article is meant merely for informational purpose. Any reliance placed on such information is therefore strictly at one’s own risk.”