Fixed Deposit

NRI Banking FAQS

Types of NRI Account

What are the different types of NRI Accounts?

  • Defining a FD

Transactional Accounts: An IDFC Bank NRI Savings Account is a transactional account that allows you to deposit or withdraw funds in the account based on your needs. We offer two types of IDFC Bank NRI Savings Accounts:

  • Non-Resident External
  • Non-Resident Ordinary
You can choose the type of account depending on whether the source of funds into this account is from India or overseas and based on your need for this account.

The table below will help you understand the difference between these accounts better:

Non-Resident External Deposit (NRE) Non-Resident Ordinary Deposit (NRO)
Purpose of the Account Both NRE & NRO are rupee denominated accounts to help you manage your financial obligations in India. You can use these funds to makes payments in rupees for investments/ support your family, transfer funds, bill payments, e-com, point of sale (POS) transactions or withdraw from an ATM
Currency
of Account
Balances in Account are held in Indian Rupees
Rate of Interest 4% p.a., interest is paid at the end of each quarter on the daily average balance 4% p.a., interest is paid at the end of each quarter on the daily average balance
Specific need Addressed by the Account Savings in India from the income earned or savings by NRI overseas Savings in India from the income earned in India (examples are rental income, sale of property, inheritance, savings before leaving India). This account is required if would like to transfer your savings/ income in India to your overseas bank Account.
Funding
the Account
The account can be funded through:
  • Foreign Currency Remittances from overseas
  • Funds from any other FCNR or NRE Account in any bank in India
The account can be funded through:
  • Any legitimate income from India
  • Funds from any other NRO or NRE Account in any bank in India
  • Foreign Currency Remittances from overseas

  • Please note that the transfer from NRO Accounts to NRE is not allowed, without supporting repatriation documentation.
    Tax The interest earned on this account is exempt from tax in India. However, the interest earned may be subject to tax in your country of residence.
    Please speak to your Tax Consultant for tax obligations in your country of residence.
    The interest earned on this account is taxable in India. Tax is currently deducted at source at 30% + CESS when the interest accrues on your deposit.
    In addition to the interest taxed in India, the interest earned may also be subject to tax in your country of residence.
    Please speak to your Tax Consultant for tax obligations in your country of residence.
    Joint
    Account Holder
    You can add Non-Resident Indians as Joint Account Holders.
    Resident Indians may be added as holder but may not operate the account till the NRI passes away. i.e. the account is operated as “Former or Survivor”
    You can add Non-Resident Indians as Joint Account Holders.
    Resident Indians may be added as holder but may not operate the account till the NRI passes away. i.e. the account is operated as “Former or Survivor”
    Mandate Holders An individual resident in India can authorized to operate the account on behalf of the account holder.
    Repatriation Repatriation can be done easily for both principle and interest earned.
    If you wish to Repatriate funds, we only require written instructions with the wire details for executing this Repatriation.
    Repatriation needs to be in adherence to the guidelines of the Reserve Bank of India and is limited to equivalent of USM 1 million per year for all qualified balances.
    Additionally, you will need to provide documents as per the guidelines issued by the Reserve Bank of India depending on the source of the funds in the account.



    Term Deposit Accounts: We offer three types of Term Deposit Accounts: Foreign Currency Non-Resident, Non-Resident External & Non-Resident Ordinary. You can choose the type of deposit account depending on whether the source of funds into this account is from India or overseas and based on your need for this account.

    The table below will help you understand the difference between these accounts better:

    India Deposit Products Foreign Currency Non-Resident Deposit (FCNR) Non-Resident External Deposit (NRE) Non-Resident Ordinary Deposit (NRO)
    Currencies You can choose from 3 currencies:
    • US Dollar
    • British Pound
    • Euro
    NRE Deposits are in Indian Rupees only. If you remit funds in Foreign Currency, these funds are converted on Indian Rupees at the prevailing exchange rate as on the date of the transfer prior to deposit booking. NRO Deposits are in Indian Rupees only. If you remit funds in Foreign Currency, these funds are converted on Indian Rupees at the prevailing exchange rate as on the date of the transfer prior to deposit booking.
    Minimum Deposit USD 1,000 or equivalent. INR 10,000. INR 10,000.
    Tenure
    of Deposit
    Tenures available range from 1 year to 5 years. Tenures available range from 1 year to 10 years. Tenures available range from 7 days to 10 years.
    Interest Computation Interest is computed using a fixed rate. Interest is computed using a fixed rate. You can choose between Simple or Compound Interest. For simple interest FD, you can get monthly or quarterly payoyout. Interest is computed using a fixed rate. You can choose between Simple or Compound Interest. For simple interest FD, you can get monthly or quarterly payoyout.
    Interest Payment Interest is accrued monthly and is paid on maturity. Interest is compounded every 180 days. Interest is accrued monthly. In case of Compound Interest, interest is compounded every 90 days and paid on maturity. In case of Simple Interest, interest is paid quarterly or monthly (monthly interest payment is with a discount). Interest is accrued monthly. For deposits greater than six months tenure both compound & simple interest is available. In case of Compound Interest, interest is compounded every 90 days and paid on maturity. In case of Simple Interest, interest is paid quarterly or monthly (monthly interest payment is with a discount).
    Deposit Renewal Deposit is automatically renewed for same tenure as original deposit at interest rate applicable as on date of renewal.If you wish to change renewal instructions, please provide instructions to the bank.
    Tax The interest earned on this account is exempt from tax in India. However, the interest earned may be subject to tax in your country of residence. Please speak to your Tax Consultant for tax obligations in your country of residence. The interest earned on this account is exempt from tax in India. However, the interest earned may be subject to tax in your country of residence. Please speak to your Tax Consultant for tax obligations in your country of residence. The interest earned on this account is taxable in India. Tax is currently deducted at source at 30% + CESS when the interest accrues on your deposit.(1) In addition to the interest taxed in India, the interest earned may also be subject to tax in your country of residence. Please speak to your Tax Consultant for tax obligations in your country of residence.
    Joint
    Account Holder
    You can add Non-Resident Indians as Joint Account Holders. Resident Indians may be added as holder but may not operate the account till the NRI passes away. i.e. the account is operated as “Former or Survivor” You can add Non-Resident Indians as Joint Account Holders. Resident Indians may be added as holder but may not operate the account till the NRI passes away. i.e. the account is operated as “Former or Survivor” You can add Non-Resident Indians as Joint Account Holders. Resident Indians may be added as holder but may not operate the account till the NRI passes away. i.e. the account is operated as “Former or Survivor”
    Funding
    the Account
    The account can be funded through:
    • Foreign Currency Remittances from overseas
    • Funds from any other FCNR or NRE Account in any bank in India
    • Euro
    The account can be funded through:
    • Foreign Currency Remittances from overseas
    • Funds from any other FCNR or NRE Account in any bank in India
    The account can be funded through:
    • Any legitimate income from India
    • Funds from any other NRO or NRE Account in any bank in India
    • Foreign Currency Remittances from overseas
    Repatriation Repatriation can be done easily for both principle and interest earned. If you wish to Repatriate funds, we only require written instructions with the wire details for executing this Repatriation. Repatriation can be done easily for both principle and interest earned. If you wish to Repatriate funds, we only require written instructions with the wire details for executing this Repatriation. Repatriation needs to be in adherence to the guidelines of the Reserve Bank of India and is limited to equivalent of USD 1 million per year for all qualified balances. Additionally, you will need to provide documents as per the guidelines issued by the Reserve Bank of India depending on the source of the funds in the account.

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