Fixed deposits are an excellent way to ensure a steady and secure return on your investment. One such fixed deposit scheme that has gained immense popularity is the NRE fixed deposit. If you’re a Non-Resident Indian looking to invest in India, this scheme could be perfect for you. This comprehensive article will discuss everything you need to know about Non-Residential External (NRE) fixed deposit eligibility, benefits, and interest rates.
Eligibility for NRE Fixed Deposits
- The applicant should be an NRI or a Person of Indian Origin (POI)
- They should have an NRE savings account
Benefits of NRE Fixed Deposits
- Tax Benefits: NRE fixed deposits are tax-free in India, meaning the interest earned on these deposits is not subject to taxes.
- Attractive Interest Rates: NRE fixed deposits offer attractive interest rates. This makes them a lucrative investment option for non-resident Indians who want to earn higher returns on their savings.
- Fully Repatriable: Both the principal and interest amounts are freely and fully repatriable to the country of the account-holder
- Flexibility of Tenure: Investors can choose a tenure ranging between 1-10 years.
- Liquidity Options: NRE fixed deposits offer various liquidity options, such as premature withdrawal, and loan against the deposit.
- Joint Account-Holding Facility: The NRE FD can be held jointly with more than one non-resident Indian.
Interest Rates on NRE Fixed Deposits
It is essential to compare the interest rates offered by different banks before opening an NRE fixed deposit account. This can help you choose the bank that offers the best interest rates and maximise your returns.
NRE FD rates may change depending on factors such as the fixed deposit amount and tenure. Additionally, the interest rates may change. It is best to check the latest NRE FD rates as mentioned on your bank’s website.
Conclusion
NRE fixed deposits offer a safe and reliable investment option for Non-Resident Indians. By investing in NRE fixed deposits, NRIs can ensure their hard-earned money grows steadily, even as they get access to their funds if and when the need arises. If you are an NRI looking for a secure and profitable investment option, consider putting your money in an NRE fixed deposit today.
Apply for an NRE FD online now!
