NRI inflow to India is one of the highest around the world, with $80 bn been invested in India in 2018. This not only shows the strength of the Indian diaspora outside economically but also the growth story of the country and how lucrative it is.
Money always flows in the direction of great returns. NRIs investing in Indian face a myriad number of issues mainly pertaining to taxation and repatriation. But before all this, they need to zero in on the right investment option. The common query is on the best fixed deposit schemes in India for NRI. Banks have traditionally ruled this space as it is easy to create and FD with the existing NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.
How NRIs can open an FD account in India
The most common doubt is if NRIs can open fixed deposits in India. They can do so and with all four types of accounts.
- NRE Fixed Deposits – Non-Resident External account is opened by NRIs to deposit foreign income in Indian currency and earn high interest. The interest and principal are fully repatriable from here and not subject to tax in India. This type of FD allows up to 90% loan against the value of FD. These FDs can be booked for a period ranging from one year to 10 years. The interest rates are comparatively higher than other accounts.
- NRO Fixed Deposits – This is similar in operation with respect to Fixed deposits in Indian currency. However, interest rates are similar to domestic fixed deposit rates. The funds have to be generated in India, and this type of account allows a join holding between an India citizen and the NRI.
- FCNR Fixed Deposits – A Foreign Currency Non-Resident fixed deposit allows you to hold different types of currencies and also repatriate the entire holding without paying taxes. Here the tenor of fixed deposits is 1 to 5 years. This type of account maintains the original currency and you can avoid the foreign exchange risk.
- Company Fixed Deposits – These are fixed deposits issued by large companies to raise capital from the public and pay an interest rate in return. These are credible and are assigned ratings of trust by leading credit rating agencies after studying their past payments and liquidity positions. For example, companies like Bajaj Finance float FDs with an aim to provide high returns. The fixed deposits are at par with bank FDs owing the credible ratings like ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating which are the highest in safety standards. Bajaj Finance FD is a great NRI FD investment owing to 1-2% higher interest rates as compared to banks.
Lucrative FD investment for NRIs
Starting from 8.35% for a new investor, a senior citizen can easily earn 8.7% for a 3-year Bajaj Finance FD. NRIs can enjoy a hassle-free investment experience with advanced features such as multi-deposit facility, auto-renew, and online FD booking. NRIs can invest using the NRO account and ensure to earn higher returns than ever before. To calculate interest rates on FD, the online FD calculator is available. However, loans against Bajaj Finance FD is not available for NRIs. Bajaj Finance Fixed Deposit as a product has a total deposit book of 16000+ crores, with about 2,50,000 customers. This speaks really well on the success of Bajaj Finance FD in creating wealth for NRIs.