Funds that have been originated in India or funds from an NRE account can only be used to open an NRO FD.There is no repatriation option on the principal investment or it’s tough.There is a repatriation option on investment through Non-Resident External Account.
An NRE fixed deposit can’t be open in joint name with an Indian resident, even if that person is a direct family member.They can be continued in the same state till maturity whether you return to India or not during the FD tenure.Many banks provide loans against FCNR deposits.FCNR accounts are protected from exchange risk.(can be taxed in the country of residency)
Here is a comparison of NRE FD Rates of some banks – Type of FD in BankĬheck – NRE Vs NRO Accounts – Everything You Must Know It is good to park money in FCNR fixed deposits & NRE fixed deposit accounts – The interest rate on these accounts may be different from the interest rate on resident FDs. Must Read – Why NRIs Returning to India? NRE Fixed DepositĪs an NRI, you can invest your money in fixed deposits in NRO, Non-Resident External, and/or FCNR accounts.
