Exploring NRI Fixed Deposit: A Comprehensive Guide

Introduction : Fixed deposits (FDs) are a popular investment option for individuals seeking stability, security, and attractive returns. For Non-Resident Indians (NRIs), investing in NRI fixed deposits provides an opportunity to grow their savings while maintaining a strong financial foothold in their home country. In this blog, we will delve into the details of NRI fixed deposits, including the features, benefits, and considerations for investing. Additionally, we will explore the interest rates offered by prominent financial institutions such as HDFC Ltd, Mahindra Finance, Bajaj Finance Ltd, ICICI Home Finance, PNB Housing Finance Ltd, and Shriram Finance Ltd.

NRI Fixed Deposit

What is an NRI Fixed Deposit?

• An NRI fixed deposit is a term deposit account that allows NRIs to invest their foreign earnings or income earned in India in a fixed deposit scheme offered by Indian banks and financial institutions.
• These deposits provide a secure avenue for NRIs to park their funds while earning a fixed rate of interest over a specified period.

Who is considered an NRI?

• An NRI is an Indian citizen who resides outside India for employment, business, or any other purpose indicating an indefinite stay abroad.
• Individuals of Indian origin who hold foreign passports are also considered NRIs.

Features and Benefits of NRI Fixed Deposits:

• Wide Range of Tenures : NRI fixed deposits typically offer a variety of tenures, ranging from a few months to several years, allowing investors to choose according to their financial goals.
• Attractive Interest Rates : Financial institutions compete to attract NRI investors by offering competitive interest rates on fixed deposits, ensuring higher returns on investment.
• Repatriability : NRI fixed deposits provide the convenience of repatriating funds, allowing investors to transfer both the principal amount and the interest earned back to their foreign accounts.
• Tax Implications : NRIs may enjoy tax benefits on the interest earned, subject to the prevailing tax laws of their home country and Double Taxation Avoidance Agreements (DTAAs) between India and their country of residence.
• Loan Against Fixed Deposit : NRIs can avail loans against their fixed deposits, providing them with liquidity in times of financial need.

Interest Rates on NRI Fixed Deposits by Prominent Institutions

HDFC Ltd :

• (i) HDFC Ltd offers competitive interest rates on NRI fixed deposits, ensuring attractive returns for investors.
• (ii) The interest rates may vary based on the tenure and the amount invested.

Rating

FAAA

Tenure

1 - 10 Years

Rate of Interest

6.85% - 8.00%

Rate of Interest Structure For NRI- Fixed Deposit - (JUNE 2023)

Scheme Name	Credit Rating	Investment Period	Amount	Monthly	Quarterly	Half Yearly	Yearly	Cumulative
HDFC Regular UPTO 2CR 0.25% extra interest for Senior Citizen Deposits up to 2 Crore only (EFFECTIVE FROM 01 MARCH- 2023)	CRISIL"FAAA" ICRA "MAAA"	12-23M 24-35M 36M 12-23M 24-35M	40000*1k	@mdo	@fat	@fat	@fat
HDFC Regular >2CR upto 10CR Cut off timing 12:00pm.>2cr amount Need to intimateHDFC before 1 hour of fund transfer to get fund transfer day ROI.	CRISIL"FAAA" ICRA "MAAA"	36M 12-23M 24-35M 36M	40000*1k	Thornton	@fat	@fat	@fat	@fat
HDFC Regular >10CR <25CR	CRISIL"FAAA" ICRA "MAAA"	15M	40000*1k	@twitter	@fat	@fat	@fat	@fat
HDFC Premium Deposits upto 2cr		22M	40000*1k	@twitter	@fat	@fat	@fat	@fat
HDFC Special Deposit upto 2cr		33M	40000*1k	@twitter	@fat	@fat	@fat	@fat

Mahindra Finance :

• (i) Mahindra Finance provides NRIs with an opportunity to invest in fixed deposits with competitive interest rates.
• (ii) The interest rates offered by Mahindra Finance may depend on the deposit amount and tenure

Rating

FAAA

Tenure

1 - 5 Years

Rate of Interest

7.05% - 7.75%

#	First	Last	Handle	Last	Handle	Handle	First	Last
Mark	Otto	@mdo	Mark	Otto	@mdo	@fat	@fat	@fat
Mark	Otto	@mdo	Jacob	Thornton	@fat	@fat	@fat	@fat
Mark	Otto	@mdo	@mdo	@twitter	@fat	@fat	@fat	@fat

Bajaj Finance Ltd

• (i) Bajaj Finance Ltd offers attractive interest rates on NRI fixed deposits to help NRIs grow their savings.
• (ii) The interest rates provided by Bajaj Finance Ltd may vary based on the deposit amount, tenure, and the specific scheme chosen

Rating

AAA

Tenure

1 - 5 Years

Rate of Interest

7.11% - 7.95%

#	First	Last	Handle	Last	Handle	Handle	First	Last
Mark	Otto	@mdo	Mark	Otto	@mdo	@fat	@fat	@fat
Mark	Otto	@mdo	Jacob	Thornton	@fat	@fat	@fat	@fat
Mark	Otto	@mdo	@mdo	@twitter	@fat	@fat	@fat	@fat

PNB Housing Finance Ltd

• (i) PNB Housing Finance Ltd provides NRIs with the opportunity to invest in fixed deposits with competitive interest rates
• (ii)The interest rates may vary depending on the deposit tenure and amount invested

Rating

FAA

Tenure

1 - 5 Years

Rate of Interest

7.00% - 7.75%

#	First	Last	Handle	Last	Handle	Handle	First	Last
Mark	Otto	@mdo	Mark	Otto	@mdo	@fat	@fat	@fat
Mark	Otto	@mdo	Jacob	Thornton	@fat	@fat	@fat	@fat
Mark	Otto	@mdo	@mdo	@twitter	@fat	@fat	@fat	@fat

Shriram Finance Ltd

• (i) Shriram Finance Ltd offers NRI fixed deposits with attractive interest rates to help NRIs grow their wealth.
• (ii) The interest rates provided by Shriram Finance Ltd may vary based on the deposit tenure and the specific scheme chosen
• (iii) For detailed information on NRI fixed deposit interest rates, individuals can visit the Shriram Finance Ltd website or contact their customer support.

Rating

FAA

Tenure

1 - 5 Years

Rate of Interest

7.00% - 7.75%

#	First	Last	Handle	Last	Handle	Handle	First	Last
Mark	Otto	@mdo	Mark	Otto	@mdo	@fat	@fat	@fat
Mark	Otto	@mdo	Jacob	Thornton	@fat	@fat	@fat	@fat
Mark	Otto	@mdo	@mdo	@twitter	@fat	@fat	@fat	@fat

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Conclusion:

NRI fixed deposits provide NRIs with a secure and lucrative investment avenue to grow their savings. With a range of tenures, attractive interest rates, and the option for repatriability, NRI fixed deposits offer numerous benefits. Financial institutions such as HDFC Ltd, Mahindra Finance, Bajaj Finance Ltd, ICICI Home Finance, PNB Housing Finance Ltd, and Shriram Finance Ltd are prominent players in the NRI fixed deposit market, offering competitive interest rates to attract NRI investors. Before making any investment decisions, it is crucial for NRIs to carefully evaluate the terms, interest rates, and associated benefits of NRI fixed deposits offered by different financial institutions to choose the option that best aligns with their financial goals and risk appetite.

Disclaimer :

The information provided in this blog is for informational purposes only and should not be considered as financial advice. Interest rates on NRI fixed deposits are subject to change based on market conditions and the policies of the respective financial institutions. It is advisable to conduct thorough research and consult with financial professionals before making any investment decisions.