Are NRI fixed deposits subject to TDS?

Yes, NRI fixed deposits are also subject to TDS (Tax Deducted at Source). This depends on the annual interest that has been earned on the fixed deposit.

What is a multi-deposit facility in an NRI FD?

An NRI fixed deposit (FD) with a multi-deposit facility allows the account holder to invest in more than one FD with different tenures and deposit amounts and make the payment through a single cheque.

Do NRI fixed deposits have any credit ratings?

Yes, fixed deposits do have credit ratings by agencies such as CARE, Fitch, India Ratings, CRISIL, etc. The higher the ratings, the lower will be the credit risk for that FD.

Can NRIs open a joint NRE account with a Resident Indian?

Non-Resident Indians (NRI) can only open a joint NRE account with another NRI.

Can you withdraw money in foreign currency from an NRI fixed deposit account?

You can only withdraw money from an NRI fixed deposit account in Indian rupees, and not in foreign currency.

NRI Fixed Deposit

A fixed deposit account is a financial service offered by most banks in the country for domestic citizens as well as Non-Resident Indians (NRIs).

NRIs have a number of fixed deposit options to choose from. There are majorly 4 types of fixed deposits which is offered by the bank for Non-Resident Indians. They are:

NRE Fixed Deposits - One of the most common options of fixed deposits to choose from is NRI deposits. This type of FD allows an NRI to deposit his or her earnings in the bank account as savings or investment and earn high rates of interest offered on the bank. In this type of FD account, deposits are accepted in Indian currency only. The tenure and interest rate differs from a domestic FD. They offer full repatriability and is tax-free.
NRO Fixed Deposits - Another type of FD for NRIs is the NRO deposit. This is similar to NRE deposits when it comes to the currency of the deposited amount. However, the interest rates of NRO deposits is the same as the domestic deposit. The money deposited in an NRO FD deposit is subjected to tax. Any NRI who has a source of income in India has to open an NRO deposit.
FCNR Fixed Deposits - A Foreign Currency Non-Repatriable(FCNR) deposit allows investors to deposit their money in foreign currencies which are accepted all over the world. Most major banks accept Great Britain Pound, United States Dollar, Euro, Canadian Dollar, Japanese Yen, and the Singapore Dollar.
RFC deposit - This type of NRI fixed deposit can be opened by the NRIs who wish to move back to India soon. In most banks, the United States Dollar, Great Britain Pound, and the Euro are accepted and the interest earned in this FD is fully repatriable.

NRE Fixed Deposits Rates

Bank	Tenure	Rate of return (p.a.)
HDFC Bank	7 days to 10 years	4.90% - 5.50%
SBI Bank	1 year to 10 years	5.00% - 5.40%
Axis Bank	1 year to 10 years	5.15% - 5.50%
ICICI Bank	1 year to 10 years	4.90% - 5.50%

NRO Fixed Deposits Rates

Bank	Tenure	Rate of return (p.a.)
HDFC Bank	7 days to 10 years	2.50% - 5.50%
SBI Bank	7 days to 10 years	2.90% - 5.40%
Axis Bank	7 days to 10 years	2.50% - 5.50%
ICICI Bank	7 days to 10 years	2.50% - 5.50%

FCNR Fixed Deposits Rates in United States Dollar

Bank	Tenure	Rate of return (p.a.)
HDFC Bank	1 year to 5 years	0.01%
SBI Bank	1 year to 5 years	0.70% - 1.03%
Axis Bank	1 year to 5 years	0.60% - 0.95%
ICICI Bank	1 year to 5 years	0.22% - 0.87%

RFC Fixed Deposits Rates in United States Dollar

Bank	Tenure	Rate of return (p.a.)
HDFC Bank	Less than 29 days – 3 years	0.01%
SBI Bank	1 year – 3 years	0.70% - 0.78%
Axis Bank	1 year- 5 years	0.15% - 0.95%
ICICI Bank	30 days – 3 years	0.19% - 0.44%

Eligibility Criteria For Non-resident Indians Fixed Deposit Accounts:

Passport - The passport of the investor should show the name, address, date of birth, photograph and the signature.
Visa/ Work permit - Visa documents should be presented by the investor which should contain the work permit, permanent resident visa, resident permit as well the employment visa along with other requested documents.

Types Of NRI FD's And How They Differ From One Another:

Type/criteria	NRO FD	FCNR	NRO Tax Saver	NRE FD	RFC
Currency	Indian rupee	USD, GBP, JPY, Euro, CAD, SGP, AUD	Indian rupee	Indian rupee	USD, JPY, Euro, GBP
Repatriability	Not fully repatriable	Fully repatriable(Interest and principal)	Not fully repatriable	Not fully repatriable	Repatriable on bonafide reasons
Eligibility	Person of Indian Origin/ Individual NRI	Person of Indian Origin/ Individual NRI	Person of Indian Origin/ Individual NRI	Person of Indian Origin/ Individual NRI	Person of Indian Origin/ Individual NRI
Joint Account Facility	Available	Available	Available	Available	Available
Tax	Interest might be subjected to tax	No tax	Interest might be subjected to tax	No tax	Exempted tax can be claimed
Tenure	1 year to 10 years	1 year to 5 years	Minimum of 5 years	1 year to 10 years	1 year to 10 years

Benefits of FD for Non-Resident Indians:

The investments made in an FD for NRIs is safe and highly secure.
An ideal option to deposit and save money earned abroad.
2 types of FDs for NRIs are exempted from tax.
Overdraft and loan facilities can be taken on the FD.
An option of nomination is allowed for the FD.
Offers higher rate of returns.

How Can An NRI Fixed Deposit Account Be Opened?

The process of opening an NRI fixed deposit account is a simple process. It can be done online as well as can be done in the branch of the bank, however, most investors prefer to do it online.

Interest rates on NRI Fixed deposits

The interest rate that is paid is different for each type of term deposit account. This also varies with the duration of investment and amount deposited. Also, the rate paid by each bank vries based on a number of internal and external factors. As far as FCNR and RFC accounts are concerned the interest rate also varies along with the type of currency the account is held in.

FAQs on NRI Fixed Deposit

Are NRI fixed deposits subject to TDS?
Yes, NRI fixed deposits are also subject to TDS (Tax Deducted at Source). This depends on the annual interest that has been earned on the fixed deposit.
What is a multi-deposit facility in an NRI FD?
An NRI fixed deposit (FD) with a multi-deposit facility allows the account holder to invest in more than one FD with different tenures and deposit amounts and make the payment through a single cheque.
Do NRI fixed deposits have any credit ratings?
Yes, fixed deposits do have credit ratings by agencies such as CARE, Fitch, India Ratings, CRISIL, etc. The higher the ratings, the lower will be the credit risk for that FD.
Can NRIs open a joint NRE account with a Resident Indian?
Non-Resident Indians (NRI) can only open a joint NRE account with another NRI.
Can you withdraw money in foreign currency from an NRI fixed deposit account?
You can only withdraw money from an NRI fixed deposit account in Indian rupees, and not in foreign currency.

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