For a long time, Savings Account has been the preferred way to park funds. But when you deposit funds in this account, it gets used for banking activities. Moreover, banks focus on providing services. Hence, the interest rate takes a back seat. You can only expect a nominal rate for your savings. If you want to earn more, you need an investment tool like Fixed Deposits. They are meant to your surplus funds substantially over a period.

Now, FD Accounts provide immense scope for wealth growth. Like residents, banks also offer a specialised type for Non-Resident Indians. It is known as NRI Fixed Deposit. This account lets you increase savings from a foreign land in your home country. Also, it is a convenient way to stay financially connected with your motherland. The funds in the account help distribute in other investment tools. Here is everything to know about it:

Opening procedure

Like any other banking product, opening an NRI Fixed Deposit Account is simple. You either do it online or offline. In both cases, the documentation process remains the same. Only the convenience differs. You must submit essential information proving your NRI status and other personal details when you approach the bank. Additionally, you need to submit the supporting documents for the same.  

Documentation

Completing the paperwork correctly is a crucial part of opening a Fixed Deposit. This holds for both residents and NRIs. In the latter, you need to understand the specific requirements for (Non-Resident External) NRE and (Non-Resident Ordinary) NRO Fixed Deposit.  

Nevertheless, the typical documents include a valid Indian passport, work permit, address proof, Valid Person of Indian Origin (POI) card, etc. Also, get them attested through a certified notary.

Eligibility

According to RBI guidelines, if you own an Indian passport and stay over 182 days in a foreign country, you qualify for opening the NRI FD. This gets verified through your overseas address, work permit, visa, employment card and other details. The Foreign Exchange Management Act also specifies some conditions for eligibility. It is best to study the same and prepare accordingly.

Interest rate

A Fixed Deposit is known for guaranteed returns, and it is no different for an NRI FD Account. However, the quantum depends on the bank's policy, invested amount, and tenure you choose. This means you have total control in maximising your FD's earnings by comparing institutions and adjusting the terms based on your financial goals. Hence, spend some time evaluating these factors to get the best interest rate.

Repatriation

You face no issues with an NRE Fixed Deposit regarding transferability. Both the principal amount and interest income are freely transferrable. But with NRO Deposits, there is a limitation for interest transfer.