Are you finding financial planning complex? If yes, you should work towards achieving financial certainty. Savings and making suitable investments are two cornerstones for financial certainty. You secure a reasonable sum and potentially build wealth. Hence, you should actively save and invest money.

If you are scouting for excellent investment options, you should explore non-resident Indian or NRI Fixed Deposit. It is a simple, secure investment option that earns you moderate, guaranteed returns. You can make a one-time lumpsum investment at a competitive interest rate for a specific tenure. Before investing, you should explore the market, as every bank offers a different interest rate. You should invest with a bank offering the highest interest rate.

Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident are the three main NRI Fixed Deposits. Let us understand these three options better:

NRO Fixed Deposits

  • Whether you are an NRI, Person of Indian Origin, or an Overseas Indian Citizen, you can invest in NRO FDs.
  • You can invest in NRO FD for a flexible tenure ranging anywhere from one to 10 years.
  • You can hold your deposit jointly.
  • Your deposit is held in Indian Rupees.
  • You earn a competitive interest rate on your deposits.
  • NRO Fixed Deposit interest earnings are taxable under the Indian Income Tax Act.
  • You can enjoy partial repatriation with your NRO FD.

NRE Fixed Deposits

  • As an NRI/ PIO/OCI, you can invest in NRE FDs.
  • You can invest for a minimum tenure of one year and a maximum tenure of 10 years.
  • You can hold your deposit jointly.
  • Your deposit is maintained in INR.
  • You earn a reasonable interest on your FD.
  • NRE Fixed Deposit interest earnings are tax-free. This lets you enjoy the fruits of your investment to the fullest without taxation eating into it.
  • You enjoy full repatriation with NRE FDs.

FCNR Fixed Deposits

  • If you are an NRI/PIO/OCI, you can invest in FCNR.
  • You can invest for any tenure between one to five years.
  • You can hold your FCNR Account
  • Your FD is maintained in a foreign currency. You can hold your deposit in US Dollars (USD), Great Britain Pound (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), Singapore Dollar (SGD), and Hong Kong Dollars (HKD).
  • You can earn an attractive interest rate on your deposit.
  • The FCNR interest earnings are entirely tax-free.
  • You can enjoy complete repatriation benefits.

Choosing a suitable type

The type of NRI FD you should invest in depends on you. You should consider your investment goals and requirements before deciding. If tax efficiency and full repatriation are your primary considerations, you should invest in NRE and FCNR FDs. If you want to keep your Indian Rupee working, opting for an NRO FD is a better option.