Moving to another country entails various expenses. The list is never-ending, from flight tickets to utility bills to other living costs. In such a scenario, you cannot simply rely on your savings. After a point, you will need to consider your long-term financial behaviour wisely. This is when a Non-Resident Indian or NRI Fixed Deposit comes to your rescue. It is a type meant for NRIs.
It allows global Indians to invest their disposable income safely through a depositing scheme. It enables them to earn high interest for substantial investment growth. The following are perks of owning such an account:
- Safe & reliable
Most investment channels available now are market-led. They hold certain risks that can hamper your investment growth. But an NRI FD Account is not market-driven. Hence, your invested funds remain unaffected by such unanticipated perils. They stay safe and secure throughout the Deposit tenure.
- Fosters saving habit
To achieve your long-term financial goals, you need to start saving religiously. But doing so can be a task. In such a scenario, you need a systematic investment scheme that will urge you to observe financial discipline. Hence, opening an NRI FD is advisable. It helps you save efficiently and effectively. The interest rates on your FD increase your invested amount significantly. As a result, you feel motivated to sustain the habit of saving.
- High rate of returns
We already know that NRI FDs are not affected by market fluctuations. They also offer high returns. Both factors combined assist in expanding your investment to a great extent. They help you reach your target investment mark quickly.
- Nomination facility
All forms of NRI FDs provide nomination facilities. This includes your Non-Resident Ordinary or NRO, Foreign Currency Non-Resident or FCNR, and NRE Fixed Deposits. This way, you can give your family members access to your investments in the case of your passing.
- Tax-free options
Taxes deduct our savings considerably. Over time, they prevent our invested funds from reaching their maximum potential. Hence, many open NRI Fixed Deposit Account once they shift to another country. It comes in different types, of which certain kinds give you tax-saving options. Under such accounts, your invested funds are exempted from taxation.
- Easy opening process
Perhaps the best feature of an NRI FD is its accessibility. Nowadays, Online Banking portals offer a smooth opening process for your convenience. They follow simple steps that barely take time to complete. You should upload a few relevant documents. Some of them include.
- A valid Indian passport
- Permanent Account Number (PAN) Card or Form 60
- Documents to prove NRI status
- Address proof (overseas and India)
- Recent passport-size photographs
Remember that if you already have an FD, the requirements will differ.
