What does FCNR deposits stand for? It is Foreign Currency Non-Repatriable deposits, which is a fixed deposit account for foreign currency. This is a unique type of account provided by Indian banks and you can deposit all the major currencies including US Dollar, Canadian Dollar, UK Pound, Japanese Yen, Deutsche Mark and Euro can be deposited to this account. You can securely save and grow these foreign currencies in your account while protecting them against currency fluctuations. Here are the benefits of holding this account.
– Interest Rate: The account earns interests based on the rate that the particular bank offers. This rate stays unaffected whatsoever and allows you to reap benefits on all the currencies deposited in the FCNR deposits account.
– Tax Exemption: You can enjoy a tax exemption on the total amount of your deposits into this account. It is a special kind of account that is absolutely non-taxable. So, you don’t have to be worry about additional charges levied on your deposits.
– Joint Accounts: One can open an individual or joint account with other NRIs. You can also repatriate the principal and interest amount at any point of time. You can also avail a nomination option where you can nominate someone you trust to be a beneficiary of your account on your behalf.
Depositing & Transferring Money to Your Account
– You can deposit money to your account from abroad by transferring money in a freely-convertible foreign currency.
– You can directly remit the amount to the FCNR bank account in India via telegraphic transfer or wire transfer.
– You can also transfer money from an existing account in India to other Banks as per your need. It is a hassle-free process with no extra charges.
– Whenever you or your joint NRI account holder travels to India from abroad, you must present your currency notes or travellers cheques for any kind of withdrawal process.
So, if you are a non-residential Indian, you are eligible to open an FCNR account. You can open an individual account or a joint account with your NRI partners. One must maintain the account for at least a minimum of one year and a maximum of 5 years to reach maturity. Different banks offer different interest rates that are subjected to change; so compare all of them and choose the one that matches your requirements. Interest rates are put out on a yearly basis. There is ample information available online that can help you make an informed decision of opening an FCNR deposits account.