Let’s face it. These are unprecedented times both socially and economically. Thus, keeping your wealth safe and managing your finances well are more important than ever!
If you are a non-resident Indian (NRI), there are several investment options available to you in India. Moreover, some instruments allow you to keep your money in your desired currency. One such savings tool is the FCNR deposit account by IndusInd Bank. It is similar to a resident foreign currencyaccount but is catered towards NRIs residing overseas. But before we move ahead to learn the features of this product, let’s dig deeper and understand what an FCNR deposit is.
What is an FCNR Deposit Account?
FCNR stands for Foreign Currency Non-Resident Account that allows NRIs to maintain a fixed deposit in India. With the help of an FCNR account, you can hold your overseas earnings and keep them safe without converting them into Indian currency or INR. Since there is no change in the currency type, you can protect your hard-earned money from the risks associated with the exchange rate changes.
While a resident foreign currency account allows NRIs returning to India to keep their foreign earnings safe, an FCNR account allows NRIs living in foreign countries to park their overseas income. The former can be opened as a savings/current or term deposit. In contrast, the FCNR deposit can only be used as a term deposit.
Hence, an FCNR account provides you with similar features as a traditional fixed deposit, and you earn a fixed rate of interest until maturity. What’s more, if you change your residency status, you can still hold an existing FCNR deposit until its maturity.
Now, if you wish to earn good returns and retain your money, IndusInd Bank’s FCNR deposit account offers some exciting features. Let’s take a look at them.
Benefits and Features of IndusInd Bank’s FCNR Deposit Account
Here are some top-of-the-line and innovative features of the FCNR deposit account byIndusInd Bank.
First off, by opting for the FCNR deposit account with IndusInd Bank, you can maintain your funds in the following currencies:
- US Dollars (USD)
- Pound Sterling (GBP)
- Euro (EUR)
- Japanese Yen (JPY)
- Australian Dollars (AUD)
- Canadian Dollars (CAD)
Usually, the interest income you earn from an FD is taxable, depending on the income slab you fall under. But you’ll be glad to know that the interest income you earn from the non-resident foreigncurrency account by IndusIndBank is exempt from tax in India!
Under IndusInd Bank’s FCNR deposit account, the interest is compounded every 180 days. If you are familiar with the feature of compounding interest, you’d know that it can earn you a considerable amount of money over the years.
If you are an NRI looking for a short-term or long-term investment option, the FCNR account will work perfectly for you. That’s because, with IndusInd Bank’s FCNR deposit, you can lock your funds for a minimum of 1 year and up to a maximum of 5 years. Thus, the account is suitable for both your short-term and long-term financial aspirations.
The FCNR deposit allows you to move your financial assets from a foreign country to your origin country. Hence, your funds (both principal amount and interest income) are freely and fully repatriable.
With these unique features and exciting benefits, IndusInd Bank’s Foreign Currency Non-Resident Account is the ideal financial instrument for NRIs. It can complement your lifestyle and help fulfil your financial goals with ease.
However, before taking any financial step, it is best to research and compare multiple options available in the market. This will help you make an informed decision and ensure that your funds are in safe hands. So, whenever you are ready, get in touch with IndusInd Bank to open a non-residentforeign currency account and begin your financial journey with us.