NRIs can easily open bank FDs in India to take advantage of the high-interest rates when compared to their country of work and residence. India has one of the highest interest rates in the world with being the fifth largest economy aiming to grow at a fast pace.
Among all the investment options, FDs makes the most sense for NRIs owing to easy compliance with the Foreign Exchange Regulations Act and other requirements by the Reserve Bank of India. Bank FDs are currently offering from 7.5% to 7.9% even to NRIs. This shows the falling rates of interest since early 2019 where liquidity is high in the economy which has led the RBI to decrease major policy rates.
Choose Company FDs
On the contrary, NRI Account Fixed Deposits can earn lucrative rates of interest 8.6% on a three year FD with Bajaj Finance and if you are a senior citizen you can easily avail 8.95% for a cumulative FD (which does not pay out in intervals).
To understand the best interest tenor for your needs, take a look at the table below –
|Tenor in Months||Minimum deposit (in Rs.)||Cumulative||Non-Cumulative|
|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%|
|Special tenors scheme|
To know the exact earning and maturity amounts on different FDs, you can look at the NRI fixed deposit calculator. This is the online FD calculator available on the Bajaj Finance website where you can input the amount to be invested, the tenor for which you wish to invest in, and whether it will be a cumulative (non-pay out) or non-cumulative (interval payout as chosen) FD. Entering these values will show you the exact maturity amount.
Taxation of Company FDs for NRIs
While Indian residents can enjoy Rs. 5,000 tax exemption of tax deducted at source for interest earned, this is not applicable for NRIs. They are bound to pay a 30.9% interest rate on the earnings they will repatriate back and earned from company FDs in India.
Process of Investment and Account Opening
As an NRI investor, you can open a Bajaj Finance FD online by filling an online form. The customer service executive will arrange for a callback and ask you the relevant details of your status as NRI, the amount to be invested, and others. Also, keep in mind you need to have a Non-resident ordinary (NRO) account to be able to invest in company FDs.
You can utilize further new features with Bajaj Finance FD to ease your investment –
- Auto-renew – As a busy professional, checking on investments for renewal and redemption can be tough. Give an easy standing instruction for auto-renewal if you do not need the money.
- Invest using a debit card – You can use a debit card to invest in FD.
- Multi-deposits – you can deposit just one lump sum and split it into a number of FDs as you require.
You need to be ready with the following documents before investing in a Bajaj Finance FD –
- PAN card
- Proof of residence
- KYC document for your country of residence
- Bank details
- Passport size photograph
- NRO account details
High Return on Investment
Bajaj Finance offers the highest return on investment in company FDs. If you see 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 Type||Interest rate||Amount||Tenor||Interest||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%|
This clearly shows how a good FD can provide a promising return and add value to your portfolio.