Is FD a good investment for NRIs?

 NRIs have many investment options in India. From mutual funds to invest in the Indian stock market, NRIs have many lucrative options to make the most of their hard-earned money. But while most of these options come with risks of their own, Fixed Deposits don’t. Fixed Deposits may be a traditional way of saving money, but they are the safest way to earn steady and guaranteed returns, especially in volatile market conditions. 

Most NRIs have their money lying idle in NRE Savings Accounts or NRO Savings Accounts in India, but they can earn better returns if they invest in Fixed Deposits.

Here are the eligibility criteria for NRIs to open an FD in India

  • Passport – The passport should display the name, date of birth, address, photograph, and signature of the applicant.

  • Visa/Work permit – This includes the applicant’s permanent resident visa, work permit, resident permit, employment visa, and any other documents which may be asked to present by the bank.

SBM Bank India offers attractive interest rates for NRI deposits and also a host of privileges and benefits. 

Here are the 3 different fixed deposits that SBM Bank India offers to its NRI customers:

Non-Resident External (NRE) Deposits – 

An NRE Deposit allows NRIs to deposit their money in the account as savings or investment and earn attractive returns. Deposits are accepted in Indian currency and the tenure and interest rates of this FD differ from a domestic FD. The returns on this kind of deposit are fully repatriable and tax-free.



Benefits of NRE Deposits:

Attractive interest rates

SBM Bank India offers lucrative interest rates on NRE Deposits with quarterly compounding. 

Flexible tenure’

You can open a fixed deposit with flexible tenure. From a minimum tenure of one year to a maximum tenure of whatever is best suited to your financial goals and needs.

Tax-free returns

NRE Deposits enjoy tax-free returns in India. 

Fully repatriable

With SBM Bank India’s NRE Deposit, your principal and interest amount are fully repatriable.

Non-Resident Ordinary (NRO) Deposits –

An NRO deposit is another option for NRIs to invest their money in and earn great returns. The money deposited has to be in INR and the interest earned is similar to a domestic FD. Usually, NRIs with a source of income in India, be it from rent receipt or investments opt for NRO Deposits. Unlike NRE Deposits, interest earned on an NRO Deposit is taxable in India. 

Benefits of NRO Deposits:

Attractive interest rates

SBM Bank India’s NRO Deposit offers superior interest rates with quarterly compounding.

Flexible tenure

You can open an NRO Deposit for a minimum period of 10 days or go up to a maximum period of 10 years.

Interest fully repatriable

Your interest in the NRO Fixed Deposit is fully repatriable after the payment of taxes.

Joint ownership

You can jointly own an SBM NRO Deposit with a family member who is a resident of India or with another Non-Resident Indian (NRI) or a Person of Indian Origin (PIO). 

Foreign Currency Non-Resident (FCNR) Deposits –

FCNR Deposits allow NRIs to deposit foreign currencies accepted across the world. Most banks accept Great Britain Pound, United States Dollar, Euro, Canadian Dollar, Japanese Yen, and the Singapore Dollar.

Benefits of FCNR Deposits:

No exchange rate risk

Since you deposit your money in foreign currency in this account, there may be the fear of losing out on money from your principal amount due to exchange rate fluctuation. However, with an FCNR deposit, there is no exchange rate risk.

Tax-free interest

The interest earned on your principal amount is fully tax-free.

Fully repatriable

Both your principal amount and the interest earned on it are fully repatriable.

Flexible tenure

You can choose a tenure of the deposit that best suits your needs.

Apart from the above, SBM Bank India’s Global Indian Programme has a host of other benefits they offer to their NRI customers. It’s a complete package that helps you make the most of your hard-earned money with world-class banking services coupled with the best investment opportunities, premium privileges, and a lot more.

Bottom line:

Although there are many more lucrative investment options available for NRIs today, Fixed Deposits are the safest of them all. They provide timely and guaranteed returns as compared to mutual funds and stock market investments where returns are affected by market fluctuations. 

Depending on your financial goals and needs, NRIs can choose a fixed deposit that works best for them, and rest assured as they earn stable returns on their hard-earned money.

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