Fixed Deposits are a popular investment in India. They are a safer avenue to park your money and offer a higher interest rate than in other parts of the world. Hence, non-resident Indians who wish to take advantage of these higher rates can avail of an NRI Fixed Deposit in India. There are three types: Non-Resident External, Non-Resident Ordinary, and Foreign Currency Non-Resident FDs.

An FCNR Deposit mainly benefits NRIs who want to open an FD with their foreign currency. This NRI FD also enables you to invest in and hold an FD in permitted foreign currency and earn interest in the same denomination.

Features

Some essential features of an FCNR Deposit include the following:

• Since you can invest and hold the investment in the same foreign currency you deposited, it is not affected by forex rate fluctuations.
• The principal amount and interest you earn from this deposit are tax-free in India. This advantage, along with attractive interest rates, enables you to maximise your earnings from the investment.
• You can freely repatriate the principal amount and interest to your country of interest.
• FCNR Accounts usually permit deposits in leading global currencies like the Euro, US Dollars, Japanese Yen, Pound Sterling, etc.
• These deposits can easily be accessed 24*7 using Online Banking services.
• FCNR Accounts typically enable you to choose investment tenures between one and five years. There is also no minimum deposit amount in the case of some banks.

Eligibility requirements

You can open FCNR Account if you meet any of the following criteria:

• You are an NRI, or
• You have a valid Overseas Citizen of India or Person of Indian Origin card.

Documents required

NRIs require the following documents to open an FCNR Account:

• A valid passport
• Address proof for India and overseas
• A recent passport-size colour photograph
• Proof of their NRI status
• A photocopy of their Indian PAN card or Form 60
• In addition, seafarers will also have to provide their current work contract, FEMA declaration, and a copy of the CDC along with the disembarkation stamp on the last page.

To open an FCNR Account, the PIO cardholder should provide the following documents:

• A valid PIO or OCI card or any other proof confirming their PIO status
• A valid passport
• A recent passport-size colour photograph
• Proof of address for Indian and overseas, as per the Customer Identification Policy
• Signed and completed PIO declaration
• A copy of their Indian PAN Card or Form 60

How to open it?

Today, you can easily compare the FCNR interest rates offered by various financial institutions and conveniently open a deposit online. To invest, complete the account-opening form online, submit the documents required, and follow the necessary steps. After completing the checks, your bank opens your deposit in no time.