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All You Need to Know About NRE Fixed Deposit
Posted on Monday, August 16th, 2021 | By IndusInd Bank
If you’re an NRI looking for a high-return investment avenue back home, an NRE fixed deposit (FD) account is just right for you. An elegant financial solution, NRE fixed deposits are entirely tax-free in India , give you attractive interest rates, and can be opened online within minutes. What’s more, you can start this FD by depositing money in any foreign currency. However, the funds you transfer will be held in INR or Indian rupee denomination only.
So what makes an NRE FD a top investment option for your foreign income? This fully repatriable INR deposit account is a hit amongst NRIs and PIOs for the high returns it offers on income earned through foreign sources. Let’s explore in detail.
Salient features of an NRE fixed deposit account
An NRE fixed deposit account is, essentially, a term deposit wherein an NRI deposits his foreign income to an Indian account. The foreign currency is, thus, converted to Indian Rupee. You can open this account either as an individual or with another NRI/ close relative of the Resident Indian.
Not sure if NRE FD is right for you? Once you know the array of features and benefits it offers, you’ll have an easier time making up your mind.
You can repatriate funds back to your country of residence
You can fully repatriate the entire sum principal + interest from an NRE FD into any bank account in your current country of residence. Yes, currency conversion rates will apply as an NRE FD holds funds in Indian Rupee. But, you get the benefit of using your funds in the currency of your choice.
You get guaranteed returns
Most developed countries like the U.K or the U.S.A. offer low returns on fixed deposits. Such is not the case in India. An NRE FD here can earn you high returns that can grow your wealth exponentially. At IndusInd Bank, we offer competitive interest rates on our NRE fixed deposit accounts, going up to 6%! The interest rate on your NRE FD is compounded quarterly.
You pay zero tax on an NRE FD in India
Another feature of an NRE FD that excites several investors is that it is exempt from taxation in India. So, you don’t have to pay any tax on either the interest or the principal component of the FD. Even at the most competitive ROI, you pay zero tax and can fully repatriate the amount to your country of residence!
You can choose from a broad tenure range
At IndusInd Bank, you can open an NRE fixed deposit account for tenures ranging between 1-10 years. If you have applied for an FD for, say, 2 years but now want to continue it for another 2, you can request a renewal.
Who can apply for an NRE FD?
● Only NRIs/PIOs/OCIs can apply for this FD, meaning people who live abroad but are citizens of India like Indian students going abroad, green card holders or anyone else with an Indian passport.
● Person of Indian origin or PIO cardholders – these individuals don’t have an Indian passport anymore but have similar privileges as an Indian citizen.
● Indian officials with a diplomatic passport who are living abroad.
Summing up
Apply for an NRE FD at IndusInd Bank and you can open it within a matter of minutes. We offer best-in-class features along with exceptional customer service to give you a smooth banking experience.
Click here and open your NRE fixed deposit account with us today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
