NRI Fixed Deposit Interest Rates – All You Need To Know

India is the fastest developing emerging economies of the world NRI Fixed Deposit. In the last few years, the government has eased foreign direct investment, allowing more and more non-resident Indians to be a part of the Indian growth story. However, most NRIs often wonder whether or not they can invest back home.

There are several investment options that NRIs can choose from. One such attractive option is the fixed deposit which is one of the popular short term investment plans used by those residing in India. An NRI deposit offers guaranteed returns with competitive interest rates and flexible duration as per your choice. Let us take a look at all you need to know about NRI FD rates before opening a deposit:

1. Competitive interest rates:

With NBFC deposits such as Bajaj Finance FD, new NRI customers can enjoy higher rates of interest up to 7.8% while NRI FD rates for existing customers can go up to 7.9% for a duration ranging from 12 months to 3 years. Senior citizens can avail special benefits with even higher interest rates up to 8.05% over and above regular FD rates. While senior citizens get a 0.25% benefit on interest rates, the rate of interest for existing customers is 0.10% over and above that of a basic NRI deposit.

2. Varying payout frequency:

You can choose from a cumulative fixed deposit or a non-cumulative one. While in the former interest is compounded annually, in the latter interest is payable at regular intervals such as monthly, half-yearly, quarterly or annually as chosen by you. While both offer better returns as compared to a savings account, cumulative NRI FD rates are higher as compared to non-cumulative deposits since the latter has an increased frequency of payouts.

3. Tax implications:

Non-resident Indians should have an existing non-resident ordinary (NRO) account or a non-resident external (NRE) account order to start investing in a fixed deposit. NRI FDs are subject to tax deducted at source (TDS) depending on the interest earned annually. If the yearly interest on an FD is less than ₹50 lakhs, TDS applies at the rate of 31.2%, while 34.32% is charged for yearly interest earned above ₹50 lakhs and 35.88% for that exceeding ₹1 crore. However, an NRI can also claim tax benefits as per the Double tax avoidance agreement.

4. High credibility:

NRI fixed deposit from Bajaj Finance enjoys the highest credit rating of FAAA/Stable by CRISIL and MAAA/Stable by ICRA. S&P Global has also given it an international rating of ‘BBB’ for the long term with a stable outlook. Thus, NRIs can be assured of guaranteed returns with Bajaj Finance FD.

As an NRI, you can protect yourself from the interest rate fluctuations in the volatile economy by investing in multiple NRI FDs with varying timelines. NRIs are allowed to make multiple deposits using the multi-deposit feature (by Bajaj Finance FD) and stagger their returns across short term investment plans as per their preference. This can be done through a single cheque. NRI fixed deposit can easily be opened online which also makes it convenient to manage multiple accounts at the same time.

You can use the fixed deposit calculator to know the maturity amount before investing by entering the amount you wish to invest for a specified duration. This will help you make an informed decision. So, protect yourself from fluctuating interest rates and stock market uncertainty by investing in a fixed deposit that offers assured returns at high-interest rates.