Non-Resident Indians have brought almost $2 billion last year to make deposits in India to make higher returns as interest rates in most developed countries are at the lowest level. August 2020 has seen the highest number of deposits.
Non-Resident Indian (NRI) investors chasing for the ways to yield a decent profit on their surplus funds without being affected by stock market risks can invest in fixed deposit schemes designed for NRI customers.
Let us discuss the process of opening NRI fixed deposits.
NRI Fixed Deposit with NRO Account
An NRI needs to open an NRO (Non-Resident Ordinary) to maintain fixed deposits in Indian Rupees. An NRI manages his income originated in India in NRO account and these funds can be used to make deposits.
Income earned outside India can also be deposited into NRO account. Through NRO account, all foreign currencies can be converted to Indian Rupee and then this fund can be used to make deposits. Investors will be able to withdraw funds in Indian currency, therefore there is no exchange rate risk involved. They can repatriate the interest amount. Bajaj Finance FDs are available for an NRI, Overseas Citizen of India (OCI) and Person of Indian Origin (PIO) with NRO accounts.
The Double Tax Avoidance Agreement (DTAA) covers interest income from FDs in India. Therefore, DTAA benefits are available for NRI investors. TDS is levied according to the rates specified in the DTAA to provide relief from paying taxes multiple times in the country of residence and India. The interest earned is subject to TDS @30% without any exempted threshold. There are some financial institutions that offer NRI deposits with NRE account also.
How to Apply
You just need to fill and submit your details in the Fixed Deposit – NRI Application Form, and you will receive a call shortly from a representative of the Bajaj Finance team. Details to be submitted are Full Name, Email ID, Country of Residence, Visiting Status in India and Deposit amount.
Features of Bajaj Finance NRI FDs
NRIs can choose any tenor from 12 months to 36 months for their fixed deposits as per their financial needs.
2. Interest rates
You can enjoy higher returns at an attractive FD interest rate up to 6.60% with the tax benefits under the Double Tax Avoidance Agreement (DTAA). For senior citizen NRIs, the rate of interest is up to 6.85%.
3. Source of Funds
An NRI is allowed to invest in Bajaj FDs only through Non-Resident Ordinary accounts. No deposits can be made using NRE accounts.
4. Multi-deposits Facility
NRIs are allowed to make an investment in multiple NRI fixed deposits using a single cheque.
5. Higher Safety and Credibility
You will earn assured returns with Bajaj Finance FD as it has the highest safety ratings in the industry – ICRA’s MAAA (stable) and CRISIL’s FAAA/Stable ratings.
6. Online Process
NRIs can open an FD online following easy steps at the official website of Bajaj Finance. You need to make payment through a cheque or RTGS/NEFT through your NRO bank account only. No payment will be accepted through debit card, demand draft, IMPS or UPI.
Depositors can choose the option of renewal at the time of opening the FD account. Investors can enjoy additional interest rates of 0.10% over the applicable interest rate/card rate on auto-renewal of the fixed deposit.
8. Interest Payouts
It is easy to manage NRI fixed deposit accounts. You can receive periodic interest payouts or receive total accumulated interest on maturity, as per your wish and needs.
The Bottom Line
Keep yourself from market fluctuations and take the advantage of the convenient online process to open NRI fixed deposit account at higher interest rates. See your funds grow even in the global downfall.