Fixed Deposit has been the most popular investment option for years now. It allows you to securely park your savings and experience significant wealth growth. It is not linked to market volatility and is hence considered a fantastic passive and secure investment option. You only need to make a lump sum one-time investment, sit back, and reap reasonable interest returns.
As a non-resident Indian, FDs should be your go-to choice. NRI Deposit is of three types: Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident Deposits. You can invest in any deposit based on your banking requirement and investment specifications. Following are the top reasons to consider an NRE FD:
Grows foreign currency earnings
NRE FDs are suitable to park and grow your foreign currency earnings. Leading banks offer a competitive interest rate on your deposits. However, they differ between banks. Explore the market, compare, and invest with the bank offering the highest interest rate. Note, NRE Deposit is denominated in Indian Rupees. If you make a foreign currency deposit, it gets converted to INR considering the ongoing currency rates.
Earn tax-free interest returns
As mentioned, you earn attractive interest returns on your deposits. The best part is the interest returns are entirely tax-free. You need not pay TDS or Capital Gain taxes on the interest returns. This gives you a chance to enjoy your investment without heavy tax liabilities eating into them. FCNR Deposit is another type to invest in if you wish to earn tax-free interest returns.
The best part about FCNR Deposits is it lets you hedge your investment against currency exchange rates.
Enjoy free repatriation
The term repatriation means sending back. In the banking world, the term repatriation indicates sending money back. This is crucial when investing in India. This flexibility dictates the access you have towards your funds. If you wish to enjoy free repatriation, you should consider NRE FD. You can fully and freely repatriate the principal investment sum and the interest returns anytime to your resident country.
This ensures your money is easily accessible in your time of need. You enjoy free repatriation with FCNR Deposit investment.
Apply for Loans
If you need to meet a financial requirement, you can easily do so by applying for Loans against your FDs. Almost all leading banks offer 80-95% of your deposit value as the Loan amount at economical interest rates. You can apply for a Loan against all three types of deposits. Availing of the Loan keeps your investment intact and meets your goals in a hassle-free manner.
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