How Is An NRI Fixed Deposit Beneficial?

When you move overseas, your expenses increase drastically. Be it your utility bills or other costs of living, it drains out a significant amount of your savings. In such a case, you need an investment channel that guarantees returns. Hence, most non-resident Indians opt for an NRI Fixed Deposit.

The NRI Fixed Deposit is a Deposit Account that allows the NRIs to save their earnings as savings or investments. They also earn high-interest rates offered by the bank. Hence, their idle money grows substantially over time. The following are its other benefits:

Safe & secure

Generally, other investment options hold certain risks. This restricts the growth and value of your invested funds. But with an NRI FD Account, your money remains unaffected despite economic and market changes. Since such investments are not market-driven, you need not worry about market risks. Your funds stay safe and secure throughout the tenure. This way, you get steady and assured returns.

Save money earned abroad

An NRI FD serves as an excellent option to save money earned overseas. Suppose you have moved to the US for work and wish to save your excess income. Then, deposit this money in your FD. It safely stores your savings without any hassle. Also, the interest rates on your FD increases your deposited funds.

Tax-free options

Many times, taxes deduct our savings considerably. As a result, our invested funds fail to reach their peak. But with some NRI FDs, you get tax-saving options. This means that your deposits get exempted from taxation. Owing to this, many NRIs open NRI Fixed Deposit Account as soon as they move abroad.

High rate of returns

An NRI FD does not get affected by market fluctuations. This not only gives you consistent returns but also lets your investment expand. Hence, it offers a relatively high return rate.

Nomination facility

All types of NRI FDs provide nomination facilities. This includes your Non-Resident Ordinary and Non-Resident External or NRE Fixed Deposits. Therefore, assign your relative or family member as your nominee.

Easy opening process

The best feature of an NRI FD is its simple opening procedure. It does not involve complex steps. Plus, it gets done online or in the nearest bank branch. Either way, present the following documents:

A valid Indian passportPermanent Account Number (PAN) Card or Form 60Documents to prove NRI statusAddress proof (overseas and India)Recent passport size photographs

While these are just the basics, your bank might ask you to submit other relevant documents. Opening an NRI FD Account does not take time if you provide the correct ones.

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