Question

What is the difference between NRE and NRO Fixed Deposit accounts?

What is an FCNR Fixed Deposit?

Are NRI Fixed Deposits taxable in India?

What are the tenure options for NRI Fixed Deposits?

How does repatriation work for NRI FDs?

Which type of NRI Fixed Deposit should I choose?

Accepted Answer

NRE FDs are used to deposit income earned abroad and offer full repatriability of both principal and interest, with no tax liability in India. On the other hand, NRO FDs are meant for income earned within India, such as rent or dividends, and are subject to TDS as per Indian tax laws. Repatriation is allowed up to USD 1 million per financial year for Bonafide purpose with documentations.

Accepted Answer

An FCNR (Foreign Currency Non-Resident) FD allows NRIs to maintain Fixed Deposits in foreign currencies such as USD, GBP, EUR, etc. These accounts are fully repatriable and offer protection against exchange rate fluctuations. Interest earned is tax-free in India.

Accepted Answer

Taxation depends on the type of Fixed Deposit. NRE and FCNR Fixed Deposits are exempt from income tax in India, whereas NRO Fixed Deposits are taxable, and the bank deducts TDS on interest income as per prevailing tax rates.

Accepted Answer

Tenure varies based on the FD type. NRE FD offers tenures ranging from 1 year to 10 years, NRO FDs offers tenures ranging from 7 days to 10 years, while FCNR FDs are offered for 1 to 5 years for USD and 1– <2 years for other currencies with competitive rates.

Accepted Answer

NRE and FCNR Fixed Deposit accounts allow full repatriation of both principal and interest. NRO FDs allow limited repatriation (up to USD 1 million per financial year) after tax deduction and documentation.

Accepted Answer

The right FD depends on your income source and currency preference. An NRE Fixed Deposit is ideal for if you wish to book deposit from your foreign income, an NRO Fixed Deposit is ideal if you wish to book deposit from Indian income, and an FCNR Fixed Deposit if you prefer to retain your savings in foreign currency.

IDFC FIRST Bank Mobile App

Drop a ‘Hi 👋’ on 9555 555 555

Call us on 1800 10 888

Locate our nearby

NRI Fixed Deposit

Grow your global earnings with a secure NRI Fixed Deposit.

Fixed Deposit for NRI: Secure and High Returns

Types of NRI Fixed Deposits

NRE Fixed Deposit

NRO Fixed Deposit

FCNR Fixed Deposit

Why Open an NRI Fixed Deposit with IDFC FIRST Bank?

Earn higher interest rates with NRI Fixed Deposits

Get flexible tenures options

NRE and FCNR FDs offer tax-free interest income under Indian tax laws.

Open and manage your NRI FD from anywhere in the world digitally

Get robust customer support round the clock across time zones

Strong banking security, ensuring the safety of your funds

Hassle-free renewal for uninterrupted investment growth

Enjoy full and free repatriation of funds from NRE and FCNR Fixed Deposit accounts.

Pre-requisites for opening an NRI Fixed Deposit

Frequently Asked Questions (FAQs)

What is the difference between NRE and NRO Fixed Deposit accounts?

What is an FCNR Fixed Deposit?

Are NRI Fixed Deposits taxable in India?

What are the tenure options for NRI Fixed Deposits?

How does repatriation work for NRI FDs?

Which type of NRI Fixed Deposit should I choose?

Learn more ways to grow your savings

Open a Joint Savings Account: Rules & Key Benefits

Savings Account in Estate Planning: Why It Matter

Automate Savings with SIPs and Mandates Effectively

Get in touch with us

ON A MISSION TO BUILD THE WORLD’S MOST

CUSTOMER FRIENDLY BANK