The Non-Resident Ordinary (NRO) account can be held by all NRIs or people of Indian origin. The account can be easily opened online without any hassles and with very minimal documentation. These term deposits are maintained in Indian denomination. HDFC offers attractive rates of interest for NRIs holding this type of fixed deposit. The different types of NRI accounts offered by HDFC are NRO Savings Account, NRO Fixed Deposit Account, and NRO Tax Saver Fixed Deposit.
The NRO Fixed Deposit Account comes with a relatively competitive rate of interest and a range of other benefits such as interest transfer, nomination facility, etc. The interest earned on these types of deposits can be repatriated and one can also withdraw as much as 90% of the term deposit at the time of a financial emergency. The account can also be opened as a joint account. Generally, the interest earned on NRO fixed deposits will be paid to the holder of the NRO account once every 3 months. There is also another option to encash more than 50% of the deposit and earn interest on the remaining amount. The minimum tenure for NRO fixed deposits is 7 days while the maximum is up to 10 years. Please note that the income gained from NRO accounts will be subject to tax and hence all tax charges will be applicable to NRIs also.
|Tenure||Interest Rate for Investment less than Rs.2 crore||Interest Rate for Investment less than Rs.2 crore for senior citizens||Interest Rate for Investment from Rs.2 crore to Rs.5 crore||Interest Rate for Investment from Rs.2 crore to Rs.5 crore for senior citizens|
|7 days to 14 days||2.50%||3.00%||2.50%||3.00%|
|15 to 29 days||2.50%||3.00%||2.50%||3.00%|
|30 to 45 days||3.30%||3.50%||2.75%||3.25%|
|46 to 60 days||3.30%||3.50%||2.75%||3.25%|
|61 to 90 days||3.30%||3.50%||3.00%||3.50%|
|91 days to 6 months||3.50%||4.00%||3.00%||3.50%|
|6 months 1 day to 9 months||4.40%||4.90%||3.50%||4.00%|
|9 months 1 day to 1 year||4.40%||4.90%||3.65%||4.15%|
|1 year 1 day to 2 years||4.90%||5.40%||3.75%||4.25%|
|2 years 1 day to 3 years||5.15%||5.65%||4.25%||4.75%|
|3 years 1 day to 5 years||5.30%||5.80%||4.25%||4.75%|
|5 years 1 day to 10 years||5.50%||6.25%||4.25%||5.00%|
*Please note that interest rates are subject to change without prior notice. This is at the discretion of the bank.
The full form of NRO is Non-Resident Ordinary account. This is a type of fixed deposit account for NRIs.
HDFC Bank NRO fixed deposits can be opened by all NRIs or people of Indian origin.
All NRO accounts can be maintained in Indian currency.
No. It is not possible to avail a tax benefit on these types of deposits. The interest earned on these deposits will be subject to tax.
Yes. As long as the customer has previously provided instructions for auto renewal, all deposits will be subject to auto renewal upon maturity. The deposit will be carried forward for the same period at the current rate of interest.
Yes. The deposit can be withdrawn before the maturity period subject to terms and conditions of the bank.
All NRO deposit holders are eligible to take a loan on these term accounts. The loan amount can be utilised to meet personal financial needs or to start a business. However, please note that the money cannot be used for plantation, agriculture or to start a real estate business.
There will be no cheque books or debit cards issued on these term deposits.
The interest will be paid through online transfer to the respective NRO savings account. The interest is usually paid on a quarterly basis.
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