India stands as the top recipient of remittances in the world, courtesy the Non-Resident Indians (NRIs) sending a massive USD 80 billion back home. This whooping amount usually stagnates in a savings account, earning nominal interest returns. With financial institutions in India offering lucrative benefits, one can invest the fund in a fixed deposit NRI account.
Unlike other market-linked options, fixed deposits generate the safest returns on investment with no impact from market fluctuations. It involves zero risks while growing the principal fund steadily. One of the leading companies you can approach for NRI FD is Bajaj Finance.
The NBFC offers the best NRE interest rates in the market, ensuring investors earn higher returns from their deposits.
Bajaj Finance NRE FD rates 2019-20
Bajaj Finance offers two types of fixed deposits – cumulative and non-cumulative. Their primary difference is that cumulative FDs pay the accrued interest at the time of maturity. Whereas, a non-cumulative FD offers the option of periodic interest payouts. You can choose to receive the same on a monthly, quarterly, half-yearly or yearly basis. Check out cumulative vs non-cumulative FD to choose the better one.
Currently, the NBFC offers competitive rates of up to 8.35%, bringing greater ROI. Below are the interest rates applicable as per tenor with effect from 3rd September 2019.
In cumulative FD and with a minimum deposit of Rs. 25,000:
|12 to 23 months||8.00%|
|24 to 35 months||8.05%|
In non-cumulative FD and with the same minimum deposit:
|12 to 23 months||7.72%||7.77%||7.85%||8.00%|
|14 to 35 months||7.77%||7.82%||7.89%||8.05%|
Apart from these, some other interest benefits for customers are:
- On renewal of the FD NRI account, customers receive an additional 0.10% rate of interest.
- Senior citizens can enjoy a 0.35% higher rate of interest on the existing one.
- Bajaj Allianz Life Insurance policyholders or BFL customers are eligible for an extra 0.10% interest rate.
Use the NRI FD calculator
A fixed deposit NRI calculator is a free online tool that evaluates your returns and helps plan the investment accordingly. It involves no manual calculation and functions on some essential details you provide.
- Choose your appropriate customer type – existing customer, senior citizen or new customer.
- Select the preferred tenor and investment amount.
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The FD NRI calculator shall instantly calculate the interest payouts and maturity amount of both cumulative and non-cumulative FDs. Check with different tenors and amounts and make appropriate choices for higher returns.
Some essential points to know before investing in NRI account
Before you invest in NRI Fixed Deposit from Bajaj Finance, check out some important considerations.
- It is mandatory to open a Non-Resident Ordinary or NRO account to invest in an FD.
- The source of the fund must be NRO bank accounts only. No other source shall be accepted.
- Besides NRIs, PIO or Person of Indian Origin and OCI or Overseas Citizen of India can also open an FD account with a tenor from 12 to 36 months.
- In India, returns from NRI fixed deposits are taxable. The applicable TDS rates are as follows:
- 2% – when annual interest on the FD is below Rs. 50 Lakh.
- 32% – when annual interest is within Rs. 50 Lakh to Rs. 1 Crore.
- 88% – when annual interest is above Rs. 1 Crore.
You can plan the investments in advance to maximize returns on your FD despite TDS.
Additional features and benefits of fixed deposits
Besides the interest rate and NRI calculator, there are a few other reasons that make FDs a profitable investment option.
- You can invest in more than one FD account and choose separate lock-in periods.
- Bajaj Finance is the only NBFC in India to have the international ‘BBB’ status from S&P Global. Their FDs come with CRISIL’s FAAA and ICRA’s MAAA ratings. These are the highest ratings in the market for the stability of returns.
All these features and benefits make the Bajaj Finance FD an ideal investment option for NRIs. Moreover, you can protect yourself from the intermittent interest rate or fluctuations in the stock market by investing in a fixed deposit. Manage your FD NRI account easily from anywhere through the easy account management facility online.