As a non-resident Indian living overseas, you have several options to invest your funds in India and earn significant returns. One such instrument is a Foreign Currency Non-Resident Deposit Account.
What is it?
An FCNR Deposit enables NRIs to invest the money they earn overseas directly in foreign currency and earn attractive returns. Eligible currencies are decided by your chosen bank and may include denominations like USD, AUD, HKD, etc.
Eligibility requirements
The following individuals are eligible to open an FCNR Deposit:
- NRIs
- Individuals who have a Person of Indian Origin Card
- Individuals who have an Overseas Citizen of India Card.
NRIs should provide the following documents to open an FCNR FD:
- Proof of their NRI status
- Valid Indian Passport
- Address proof for India and abroad
- Recent passport-sized colour photograph
- Copy of PAN card or Form 60
- Seafarers will also require FEMA Declaration, their current work contract, and a copy of CDC along with the disembarkation stamp on the last page.
PIO require the following documents:
- Valid passport
- Recent passport-sized colour photograph
- Address proof for India and overseas according to Customer Identification Policy
- Valid PIO/OCI card or any other document proving their PIO status
- Duly filled in and signed PIO Declaration
- Copy of Indian PAN Card or Form 60
Features
Some of the important features of this NRI FD Account include:
Deposit criteria
An FCNR Deposit allows you to invest your funds in an eligible foreign currency and retain them in the same denomination throughout the tenure of the deposit. It provides you with good returns. Since your deposit is held in a foreign currency, it removes the risk of exchange rate fluctuations. This also enables you to earn risk-free and significantly higher returns. There is also no minimum deposit amount for FCNR Deposits.
Tenure
NRIs can avail of tenures ranging between one and five years in case of an FCNR Deposit. Banks and other financial institutions allow depositors to withdraw these deposits before maturity too. The interest paid out will depend on the period during which this deposit was held. However, no interest is paid if you withdraw your deposit prematurely before the end of one year from the date of renewal or deposit.
Interest rates
FCNR Deposit rates usually vary among banks and you have to contact your chosen banking institution to know their latest rates.
Repatriation
The principal sum deposited in an FCNR Account and the interest earned on it, are freely and fully repatriable.
Taxes
The interest earned on deposits in an FCNR FD is exempted from being taxed in India.
How to invest?
Today, you can open an FCNR Deposit online conveniently, irrespective of wherever you are. However, if you are unsure about the process, request a call-back from the bank and a relationship manager reaches out to you instantly.
