If you are an NRI then you would certainly prefer investing in a fixed deposit rather than leaving all your earnings in a savings account as FDs offer higher interest rates. India is one the leading countries when it comes to NRIs sending remittances back home. However, most of this money remains left in the savings account and does not provide good returns to your family and loved ones.
You can always think of investing in FDs that are meant for NRIs as they offer assured returns and opportunity to grow your money without any issues. To know more about these FDs, you can read the below points:
Types of NRI FDs
For investing in an FD in India as an NRI, you will need to open a NRI account in an Indian first. Now, this account can either be a NRE (Non-Resident External) account or NRO (Non-Resident Ordinary) account.
NRE FDs are ideal if you are not earning in Indian Rupees. However, NRO FDs are best if you stay abroad but also have an income source in India. NRO deposits are safe from the currency exchange rates as your deposited money will be in Indian Currency.
Repatriable returns
Once your FD matures, you can repatriate it back to your foreign account. This includes both the interest earnings and the deposited principal. The deposited amount in case of NRO FDs is capped to a certain limit whereas the interest earnings is completely repatriable.
Rate of Interest
You might be worried about depositing your earnings in an FD as the bank FD rates have been lowered significantly. However, there is no need to worry as there are still some financiers that are offering a high FD interest rate on NRI FDs. For example, Bajaj Finance FD is offering an interest rate up to 7% whereas senior citizens will get a 0.25% higher FD interest rate. To know the returns before investing you can use its fixed deposit interest rate calculator.
Deposit amount
There is a common misconception that you need to deposit a higher amount in NRI FDs. However, it is not true as many financiers allow NRIs to start an FD with the same minimum deposit amount as normal citizens. For instance, Bajaj Finance allows you to start an NRI FD with only Rs. 25000. This means that you don’t have to collect a huge corpus to grow your earnings from FDs.
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Tenor range
The tenor range for NRI FDs might vary from bank to bank but a flexible tenor range is mostly available for NRIs as well. Bajaj Finance is providing a tenor range from 12 to 36 months for NRI FDs. Also, you can select the option of auto-renewal while filling up the online FD form.
Safety
NRI FDs are as safe and stable as any other FDs in India. However, you should cross check the credit ratings of a financier before depositing your money as a high credit rating would mean that your deposited capital is completely safe.
Bajaj Finance FD has received high credit ratings by credit rating organizations like CRISIL and ICRA. Therefore, you need not worry about the safety of your FDs after investing in its FD plans. However, funds and accepted only through NRO accounts and payments can be made through a cheque or NEFT/RTGS from an NRO account.
You also have the option of depositing in multiple FD plans at once by using its multi-deposit facility. Therefore, this NRI FD is certainly a good and stable way to grow your earnings.
As an NRI, you would like to grow your investment at a faster rate. Therefore, instead of leaving your earnings in a savings account, you can deposit them in an NRI FD that is specifically meant for NRIs. The present economic condition in India might raise questions in your mind but there is no need to worry as some financiers like Bajaj Finance are still offering an interest rate of up to 7.25%.
However, you need to open an NRO account as funds only from NRO accounts are accepted. Also, the minimum deposit amount is only Rs. 25000 and you can invest in multiple FDs using its multi-deposit facility. Also, it is safe to invest in Bajaj Finance FD as it has received high credit ratings from CRISIL and ICRA.
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