5 Important Things To Consider Before Opening an NRI FD Account

In this article, we take you through the things you need to consider before setting up an NRI Fixed Deposit Account.  

A Fixed Deposit is a reliable and risk-free investment option, especially when you want to secure your overseas earnings and invest in India. NRI Fixed Deposit rates in India are ascertained depending on the type of deposit you choose.

The main Fixed Deposit options are:  

Non-Resident External (NRE) Deposit: This deposit is a Rupee denominated deposit. The principal and interest accrued are tax-free. However, the benefit is that you can repatriate your funds in any available chosen foreign currency without any hassle. The NRE Fixed Deposit interest rates are higher than the other Fixed Deposit options. 

Non-Resident Ordinary (NRO) Deposit: This deposit type is customised for those NRI who have earnings in India. It enables you to save your Indian earnings securely. However, the interest accrued through an NRO Deposit is taxable. 

Now that we have the basics of the NRI Fixed Deposits let’s look at the things to keep in mind. 

NRI FD Interest Rates

The first point of consideration is the interest rate. Opt for the Fixed Deposit that offers you a competitive interest rate. Various banks customise the rates for you depending on the amount and tenure.


Be sure to find out whether your NRI Fixed Deposit has the facility for repatriation. The type of Fixed Deposit will offer you this option. At times the entire principal and interest amount are available for repatriation in your chosen foreign currency. Certain Fixed Deposits only let you repatriate a stipulated amount in the financial year. Banks such as HDFC Bank offers you the option of an NRE Fixed Deposit, wherein you have the liberty to repatriate your entire amount back to your country of residence. 


The most crucial thing to consider when you are an NRI and intend to invest in India. It plays a vital role for your total investment choices. NRI FD interest rates in India are partially taxable. It is conditional to the type of FD you select. An NRE Fixed Deposit is entirely exempt from taxation. That is the principal and interest is exempt from tax. However, an NRO Fixed Deposit is liable for tax on the interest earned. 


The tenure of the NRI Fixed Deposit is crucial. The time frame of the deposit ascertains your NRI FD interest rates, as well as your final principal payout. The longer the tenure, the higher the rate of return. Please Note: Minimum tenure of an NRE FD is 1 year.

Financial Goals

It is an imperative thing to consider before opening an NRI FD. Your financial goals determine your entire financial planning strategy. Depending on your investment profile- aggressive, conservative or balanced, you can then determine the type of Fixed Deposit you would like to invest. 

Now that you are aware of the things to consider before opening an NRI FD Account and the possibility of choosing an option with the best NRI Fixed Deposit rates in India. Don’t waste any more time and set up your Fixed Deposit today. To know more, click here.

Click here to get started with NRI Fixed Deposit.