NRE Fixed Deposits (FDs) have become a popular investment choice for Non-Resident Indians (NRIs) over the years. Whether you're an NRI looking to invest surplus funds or seeking a stable income stream in India, NRE FDs are worth considering. In essence, NRE Fixed Deposits offer a secure and lucrative investment avenue for NRIs, combining the benefits of attractive interest rates, tax savings, and repatriation flexibility. For NRIs looking to maintain funds in Indian currency, especially in anticipation of future expenses in India (like property investment or children's education), NRE FDs present an ideal option.

This means that the money deposited remains in INR and the interest earned is also in INR. By opening an NRE FD account, Raj was able to invest the funds in India, earn tax-free interest, and had the flexibility to send the money back to the USA whenever he wished.įurthermore, NRE FDs are maintained in Indian rupees, making them immune to foreign exchange rate fluctuations. Unsure of where to park the proceeds, he learned about NRE FDs. Raj recently inherited a property in India, which he sold. Let's take the example of Raj, an NRI residing in the USA. The primary allure of this financial instrument is that the interest earned is tax-free in India, and the principal and interest are fully repatriable, meaning they can be transferred back to the account holder's country of residence. However, the Indian banking system offers a solution that not only helps NRIs manage their earnings but also provides attractive returns: the NRE (Non-Resident External) Fixed Deposit.Īn NRE Fixed Deposit is a type of term deposit account that can be opened by an NRI or a Person of Indian Origin (PIO) with funds remitted to India through a legitimate banking channel. For many Non-Resident Indians (NRIs), managing finances in their homeland while residing overseas can be a challenge.

Hdfc fixed deposit rates nri