India is one of the top nations to receive remittances. More than Rs.800 billion has been parked in Non-Resident Ordinary (NRO) in India. But in a savings account, one cannot earn higher interest like fixed deposits (FD).
Guaranteed returns at a competitive interest rate and tax benefit under the Double Tax Avoidance Agreement (DTAA) attracts NRI depositors to invest in fixed deposits. Non-resident Indian (NRI) is an individual who is a citizen of India or a person of Indian origin (PIO) but not residing in India.
An NRI depositor can open an online fixed deposit account in easy steps. Before explaining the steps involved in opening an online NRI FD, there are a few important concepts to understand.
NRI Bank Accounts
Indians who live abroad can invest in bank FDs in India through a
- Non-Resident Ordinary Rupee A/c – (NRO A/c)
- Non-Resident External Rupee A/c – (NRE A/c)
- Foreign Currency Non-Resident (Bank) A/c – (FCNR A/c)
Most common NRI FDs are NRI FDs with NRO and NRE accounts.
Following are the main distinguishing points between NRO and NRE accounts:
- NRO account is used to manage Indian earnings whereas NRE account is used to manage foreign earnings.
- NRO is not exposed to forex risks whereas NRE account is exposed to forex risks.
- Interest on NRO A/c is taxable in India whereas on NRE A/c is not taxable.
Tax Deducted at Source (TDS)
Following TDS rates are applicable for NRI NRO account FDs:
If depositor’s interest income on deposit in a financial year is
- less than Rs.50 lacs – 31.2%
- between Rs.50 lacs to 1 Cr – 34.32%
- more than Rs.1 Cr – 35.88%
Double Taxation Avoidance Agreement
To avail the benefits of the Double Taxation Avoidance Agreement (DTAA), a depositor must be the resident of a country with which India is partnered with DTAA. The depositor needs to submit Tax Residency Certificate, Self-Declaration Certificate and Form No.10 to be benefitted with DTAA tax treaty.
Bajaj Finance NRI Fixed Deposits
In this time of increasing market volatilities, if you are an NRI investor looking for higher FD interest rates in India, you can consider Bajaj Finance FDs offering competitive NRI FD rates up to 7.25% as on Feb 2021.
An (NRIs), Person of Indian Origin (PIO), and Overseas Citizen of India (OCI) with Non-Resident Ordinary (NRO) accounts is eligible to invest in NRI FDs with Bajaj Finance.
Benefits with Bajaj Finance NRI FDs
Alluring 7.25% Interest Rate
Bajaj Finance NRI Fixed Deposits can help you to accumulate wealth to meet your financial goals and these FDs are offering a higher rate of interest up to 7.25%. Investing. It will safeguard your corpus and ensure fixed returns.
Higher Interest for Senior Citizens
NRI senior citizens want a safe investment avenue to invest their savings, Bajaj Finance FDs are for you. You will be benefited with an additional interest rate benefit of 0.25% over the regular interest rate. You can opt for periodic interest payouts also.
Flexible Investment Tenor
NRIs can avail the benefit of flexible FD tenor between 12 and 60 months. You have the freedom to select the tenor that suits your financial needs. Choose a maturity date as per your liquidity requirements. It is advised to ladder your FDs to enjoy a higher cash inflow in the times of need.
NRIs are allowed to choose a deposit starting from as low as Rs. 25,000 and can be up to 1 crore. With such a low investment deposit amount, any individual can start investing at any point of time instead of waiting for an accumulated corpus to earn higher interest. You can start FD investments now to earn better returns.
Bajaj Finance offers an online calculator that helps NRI investors to calculate their returns on investments even before investing. Yes, sounds good. Determine how much you should invest at present to receive the desired amount on a particular date.
And there are many other influential benefits offered by Bajaj Finance to their NRI clients.
How to Invest – The Process
Determine your residential status and open an NRE/NRO account with a bank as per your income category. And you are ready to invest in NRI FDs. To avail the benefit of an additional 0.10% p.a. interest, apply online.
Following are the steps to open an NRI FD account:
Step 1: Go to FD NRI Application Form (bajajfinserv.in)
Step 2: Fill in Name, Email ID, Country of residence, residential status and submit.
Step 3: Your inquiry will be answered by a BFL representative and you can proceed with completing the deposit process.
The Bottom Line
Bajaj Finance NRI FD with high stability and credibility is one of the safest investment avenues, no matter what is your risk appetite. This fixed deposit has been awarded stable ratings i.e. FAAA/Stable rating and MAAA (stable) by the rating agencies CRISIL and ICRA. Get ready to take advantages of such profitable NRI FD.