For Non Resident Indians (NRI) looking to invest in their home country, Fixed Deposits are one of the most preferred options. This is because unlike shares and other market related investments, fixed deposits are devoid of risks and offer stable returns.
Non Banking Financial Companies (NBFCs) provide 1% to 2% higher FD interest rates than banks. A bank’s interest rate is directly affected by market fluctuations and REPO rate cuts imposed by the Reserve Bank of India (RBI), while NBFCs can give more stable returns.
- NRO v/s NRE
NRIs cannot hold a savings bank account in India. To park their money or invest it here, they need either an NRO (Non Resident Ordinary) or an NRE (Non Resident External) account. Funds from the country of residence, as well as the earnings from sources within India can be put in an NRO account. NRE account allows only the earnings from the country of residence. NRE account can be held with another NRI, while a joint NRO account can be held with a resident Indian also. Deposits made in both these accounts are converted to INR.
- How to Open an NRI Fixed Deposit Account in India
NRI account opening for company fixed deposits such as Bajaj Finance FD can be done with an NRO account. The account holder can deposit income earned from rent, dividends and other sources in India, which can be used to open a fixed deposit.
With a simple online application process, you can start investing in Bajaj Finance FD. You can make payment via RTGS/NEFT from NRO bank account. Payment via debit card, demand draft, UPI or IMS is not permitted. Before investing, use the FD calculator online to check the kinds of returns you will receive. Online FD calculator helps the investor decide the amount and tenor of investment.
Some reasons why it is considered one of the best fixed deposits in India are –
- Higher returns: It gives lucrative returns which go up to 8.05%. Longer the investment tenor, the more you earn.
- Systematic Deposit Plan (SDP): Bajaj Finance FD is the only Indian FD provider that has provision for a Systematic Deposit Plan. Under this, the investor has to make small, monthly contributions to his deposit, just like a Systematic Investment Plan (SIP). This breaks the traditional rules of accumulating a large of amount of funds to put away in a fixed deposit. With SDP, anyone can start reaping the benefits of fixed deposits with a disciplined investment pattern. There is no penalty for missing a deposit.
- Higher stability: Investors get guaranteed high returns. It has the highest stability ratings with CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) rating. It is also the NBFC to hold an international rating of ‘BBB’ by S&P Global, meaning it can be trusted to provide risk-free investments.
- Flexible investments: Even if you do not go for SDP, you get the freedom to choose cumulative or non-cumulative FDs for a tenor ranging from 12 to 60 months. With a cumulative FD, you get interest is paid out with the principal amount at the time of maturity. It is ideal to build a corpus. Non-cumulative FD offers you multiple interest payout options that can be used to look after monthly expenses.
Multi-deposits for maximising returns: You can use the multi-deposit facility to invest in several FDs of varying tenors and investment amounts. This strategy will even out the returns across different FDs and help you achieve maximum returns when the economy goes through multiple rate changes.
Author Bio
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory.
