‘NRI deposits’is a term used for the fixed deposits made by non-residential Indians in any of the banks in India. There are several banks in India that offer a variety of customised fixed deposit accounts to Indians residing overseas. One can choose from a range of different schemes that are offered by different Indian banks. These banks also give you an opportunity to earn great interests on your fixed deposits. Following are the benefits and eligibility criteria of having a NRI fixed deposit account.
– Eligibility:You can open an NRI fixed deposit account either individually or jointly with your family or spouse, who are NRIs. This flexibility is offered by various top banks in India. Also, one can open this account only if he/she is not residing in India but is of Indian origin or nationality.
– Interest Rate:When you open this kind of an account, you earn more interest on NRI deposits as compared to general savings accounts. Therefore, holding this account is beneficial if you are a non-residential Indian.
– Premature Withdrawal:With prior notification, one can withdraw the account at a premature stage. However, if you want to earn interest on your savings, you will have to make sure that your deposits are in the account for a particular period of time in the designated bank.
– Tax Concessions:There are several schemes and policies that apply when it comes to opening an NRI account. Some NRI fixed deposits are non-taxable, like if you open an FD account through an NRE account in India, it is not taxable. However, accounts opened through NRO or FCNR accounts are bound to receive tax concessions.
– Account Renewal:As and when your account matures, it can be auto-renewed as per the option chosen by you while opening the account. You can either choose to renew the account or close it eventually.
– Loan Policies:Several banks offer loan against your fixed deposits. If you are looking to take up a loan, then the NRI deposits can be a great security for it. It is always better to compare different facilities and offers provided by various banks before making the final decision.
These are the advantages of holding an NRI deposits account. If you are an Indian, living in another country, you can still open an FD account or several accounts in India and reap its benefits. You can also take a good look at the customized deposit schemes that can be profitable for you in the future.