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NRI FD Rates – Best NRI Fixed Deposit Interest Rates 2019

The émigré Indian, commonly called as the Non-Resident Indian (NRI), settles in a foreign land for newer opportunities that are unique and unavailable in India. But living offshore does not mean that one has to sever ties with the home country completely. Once they achieve their main objectives, many NRIs are interested in partaking in the growth that India is experiencing.

For NRIs, a robust regulatory system is an essential aspect to invest in a country. The Reserve Bank of India and the Securities and Exchange Board of India are strong institutions which have displayed their ability to calm frayed nerves in times of distress. They have enough autonomy to make decisions and clamp down on suspicious activity. They also maintain transparency to ensure that investors feel safe.

Easy Investment Option for NRIs

Among all the investment options, fixed deposit in India is one of the easiest to open for NRIs owing to secure compliance with the Foreign Exchange Regulations Act and other requirements by the Reserve Bank of India. NRI account fixed deposits interest rates range from 7.5% to 7.9%. This denotes the lowering of interest rates since early 2019. This indicates high liquidity, which has led the RBI to decrease significant policy rates.

Choosing Company FDs

Interestingly, NRI Account Fixed Deposits which are simply company FDs now earn higher rates of interest of 8.6% for a three year FD with Bajaj Finance. You can easily earn 8.95% for a cumulative FD if you are a senior citizen. Cumulative FDs are those which do not give a payout periodically.

To choose the best interest rate for you, take a look at the table below –

Tenor in Months

Minimum deposit (in Rs.)

Cumulative

Non-Cumulative

Monthly

Quarterly

Half-yearly

Annual

12 – 23

25,000

8.00%

7.72%

7.77%

7.85%

8.00%

24 – 35

8.15%

7.88%

7.93%

8.00%

8.15%

36

8.60%

8.28%

8.34%

8.42%

8.60%

Special tenors scheme

15 Months

1,00,000

8.05%

7.77%

7.82%

7.89%

8.05%

NRIs can open a Bajaj Finance FD using NRO – Non-Repatriable accounts. NRO or Non -resident ordinary account is provided with an Indian bank. It is denominated in Indian rupees and the money in this account cannot be withdrawn.

NRIs can plan their savings along with financial goals by earning abroad and using that money to make deposits in India. NRI deposits are one of the primary sources in foreign exchange, and the high-interest rates on company FDs will offer a highly lucrative investment option.

Return on Investments in Bajaj Finance FD

You can earn the highest with Bajaj Finance company FDs. With the returns in the table below, you can see by just investing Rs 25,000 – which is the minimum investment required for a Bajaj Finance FD, the ROI is easily 51% for a 5 year FD. If you are a senior citizen, you can avail further ROI.

Investor

Interest rates

Amount

Tenor

Return

ROI

New customer

8.6%

Rs 25,000

5 years

Rs 12,765

51%

Senior citizens

8.95%

Rs 25,000

5 years

Rs 13,377

54%

Existing customers

8.85%

Rs 25,000

5 years

Rs 13,202

53%

 

Taxation of Company FDs for NRIs

While Indian citizens can avail a tax exemption of Rs 5,000 on tax deducted at source for interest earned on a company FD. However, this is not available for NRIs. They are bound to pay a 30.9% interest rate on the earnings they will repatriate back and received from company FDs in India.

Account Opening Requirements

The various documents required to be submitted to Bajaj Finance for opening an FD are as follows –

  1. PAN or corresponding document
  2. Bank statement
  3. Overseas Citizenship Proof
  4. Photographs
  5. Copy of Passport
  6. Any other documentation required by Bajaj Finance

Additionally, NRIs can take advantage of the ease of investment through online means and use 

About author

Joel Borthwick is basically from Australia but is keen to explore everything under the sun. He is a part-time blogger, well acclaimed for his blogs on topics like - home improvement, business, lifestyle, health, travel and fashion. He aims to solve day-to-day problems of people through his blogs.
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