Fixed Deposit Is Good Option for NRI Investment in India

The non-residents often look reluctant to invest in India because of being settled in foreign for a certain period. The risk and the fear of being trapped often push them back from taking any step for investment. But, the whopping USD 80 billion remitted to India tells how curious the NRI community is to park their money in the saving account.

Apart from savings, there are fixed deposits that promise a great return on investment for a fixed tenure. According to S2NRI report, the Indian diaspora turns fearless when it comes to making NRI investment in these plans. It becomes ready to invest their hard earned money in them. This is why such investment plans are the most sought after ones for parking their money in a safe scheme where income through interest is sure.

We recommend the best plan under our NRI investment services to safeguard your earnings from fraudsters.  Our research points that FDs could be a great option for safeguarding your money in India.

Fixed Deposits (FD)

The fixed deposits are investments that remain barred from market fluctuations. In other ways, the inflation does not cast impact on their interest rate earned. It means that the investor can enjoy fixed income through their interest for that particular tenure.

Also, the principal amount consistently increases without being a failure.  

NRI FD Interest Rates

Being bound to the fixed return, the FDs guarantee income. But, the quantum of that income depends on the interest rate offered by the host bank or finance company. In other words, you have these long term deposits as a concrete option to ensure FD earnings. So, you should compare, examine and then, select the bank that provides with maximum interest on that deposit. If you are blindfolded to the host of such NRI investment plans, S2NRI offers consulting over NRI investment services. Besides, you can consider documentation or related matters with us.

    

For example, Bajaj Finance offers these interest rates corresponding to new, existing customers and senior citizens.

a.       For a New Customer

Deposit (INR)	Tenure (Years)	Interest Rate (%)	Maturity Amount (INR)
10,00, 000	3	8.60	12,80, 824

b.      For an Existing Customer

Deposit (INR)	Tenure (Years)	Interest Rate (%)	Maturity Amount (INR)
10,00, 000	3	8.85	12, 89,690

c.       For a Senior Citizen 

Deposit (INR)	Tenure (Years)	Interest Rate (%)	Maturity Amount (INR)
10,00, 000	3	8.95	12, 93, 248

Tax Deduction on NRI FDs

The income of NRIs from any property in India or other resources is termed as a capital gain. Therefore, their earning is subjected to be taxed according to the slab of the current financial year (FY).  This slab is revised under a new financial year budget. Therefore, its interest rate is also refined.

  

The given table exhibits interest rates corresponding to their annual income for 2019-20 FY.

Annual Interest Earned	Interest Rate (%)
>INR 50 Lakh	31.20
<INR 50 Lakh But >INR 1 Crore	34.32
<INR 1 Crore	35.88

Despite being levied with tax, the expats with Indian passport can premeditate their interest on FD through the NRI FD calculator. It will let you create a crystal clear approach of how to plan your FD investment here. There are certain banks and finance companies that offer multiple investment schemes together with auto-renewal facilities online.

 

The NRI community can channelize their income under multiple deposit facility. It allows multiple FDs of variable duration running together. Even, auto-renewal facility is also embedded that lets automatic renewal of its FD investment plan sans hassles.

 

If you have any queries in the context of  NRI investment services, consult S2NRI for the best suggestions.