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Non-Resident External (NRE) deposits are an attractive option for Non-Resident Indians (NRIs) looking to park their foreign earnings in India. Axis Bank NRE FD offers a robust platform for such investments. These fixed deposits are held in rupee denomination, allowing NRIs to benefit from the growth potential of the Indian economy. One of the standout features of Axis Bank NRE FD is the tax-free interest income it offers to foreign nationals. In essence, an NRE Fixed Deposit account is a term deposit account that NRIs can open to invest their overseas earnings within an Indian bank. The primary reason many opt for this is to ensure growth in their savings and avail tax benefits on interest. Axis Bank NRE FD rates are competitive, making them a preferred choice for many NRIs. The bank's commitment to providing high returns with minimal tax liabilities further cements its position as a top choice for NRI fixed deposits.
Features of Axis Bank NRE FD
Account Flexibility: NRIs can open the account either individually or jointly with another NRI.
Currency Options: Deposits can be made in any easily convertible foreign currency, ensuring flexibility in currency choices.
Preclosure Policy: Preclosure before 1 year results in zero interest payment. However, partial withdrawals are permitted with certain charges.
Automatic Renewal: Upon maturity, both the principal and interest amounts are automatically renewed.
Overdraft Facility: Account holders can avail an overdraft of up to 85% of the deposit value, providing liquidity when needed.
Renewal Policy: For NRE accounts that go overdue but don't exceed a 14-day period, the bank can renew them. The interest rate in such cases is determined by either the rate during maturity or on the date of renewal, with the lower rate being applied.
Interest Rates for Axis Bank NRE FD
NRI Fixed Deposit Interest Rate: Less than Rs.5 Crore
NRI Fixed Deposit Interest Rate: Rs. 5 Crore and Above
Eligibility Criteria for Axis Bank NRE FD
Who can apply?
Non-Resident Indians (NRIs): Individuals who are Indian citizens but reside outside India for employment, business, or any other purpose indicating an indefinite period of stay abroad.
Person of Indian Origin (PIOs): Individuals who are foreign citizens but have Indian roots or ancestry. This includes foreign citizens whose parents or grandparents were born and were permanent residents in India.
Necessary Documentation for Application:
Valid Passport: A copy of the passport showing the identity and address of the applicant.
Proof of NRI Status: Documents such as employment visa, student visa, resident visa, dependent visa, or work visa.
Proof of PIO/OCI Status: For PIOs, documents like the PIO card, OCI card, valid visa, or birth certificate can be used.
Address Proof: Both overseas and Indian address proofs are required.
Indian Permanent Account Number (PAN) Card: Mandatory for tax purposes.
Passport Size Photograph: A recent photograph of the investor.
How to Open an Axis Bank NRE FD Account
Online Application Process:
Step 1: Visit the official Axis Bank website.
Step 2: Navigate to the NRE FD section.
Step 3: Click on the 'Apply' option.
Step 4: Fill in the required details in the application form.
Step 5: After filling in the details, courier all necessary documents to the bank for verification.
Required Documents for Application: As mentioned in the eligibility criteria section, documents like a valid passport, proof of NRI status, address proofs, PAN card, and a passport size photograph are required.
Premature Withdrawal Facility
For deposits below Rs. 5 crore in NRE FD, there is no penalty for premature withdrawal.
A 1% penalty is charged for deposits above Rs. 5 crores in NRE FD.
If the NRE FD is closed prematurely before the completion of 1 year, no interest will be payable.
Loan against Axis Bank NRI FD
Percentage of Loan Available Against Deposit: Axis Bank provides loans against NRI fixed deposits up to 85% of the deposit amount. However, this limit may vary for some schemes.
Purposes for Which Loans Can be Availed: Loans can be taken for personal or business purposes.
Purposes for Which Loans Cannot be Availed: Loans cannot be taken for carrying out agro-based activities, real estate business activities, or for the purpose of re-lending.
Axis Bank's NRE FD is a prime choice for NRIs and PIOs looking to invest their overseas earnings in India. With competitive interest rates, flexible tenures, and the trust of one of India's leading banks, it offers a combination of growth and security. The facility to avail loans against the deposit and the tax benefits further enhance its appeal. Whether you're an NRI looking to park your foreign earnings or seeking a tax-efficient way to grow your savings, Axis Bank's NRE FD stands out as a robust and reliable option.
FAQs
What is the main purpose of an Axis Bank NRE FD?
Axis Bank's NRE FD is designed for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) who wish to invest their foreign earnings in India. The deposits are held in rupee denomination, allowing NRIs and PIOs to benefit from competitive interest rates in India while also enjoying tax-free interest income. It's an ideal choice for those wanting to ensure growth in their savings and avail tax benefits on the interest earned.
Can I open an NRE FD account online with Axis Bank?
Absolutely! Axis Bank has streamlined its processes to cater to the digital age. NRIs can conveniently apply for and open an NRE FD account online. By visiting the Axis Bank website and navigating to the NRE FD section, applicants can click on the 'Apply' option, fill in the required details, and then courier the necessary documents to the bank.
Is joint account opening possible for NRE FD?
Yes, Axis Bank allows the flexibility of joint account opening for its NRE FD. However, it's essential to note that both account holders must be NRIs. This feature enables families or partners to manage their investments collectively.
Are Indian residents eligible to open an NRE FD account?
No, the NRE FD account is exclusively designed for NRIs and PIOs. Indian residents living in India are not eligible as the primary purpose of this account is for those earning in foreign currencies to invest in India.
Is the interest earned on Axis Bank NRE FD taxable in India?
One of the significant advantages of the Axis Bank NRE FD is that the interest earned is exempt from tax in India. This tax exemption makes it a lucrative option for NRIs looking for efficient tax-saving investment avenues.
Can I avail a loan against my NRE FD deposit?
Yes, Axis Bank provides the facility for NRE FD holders to avail loans against their deposits. This can be up to 85% of the deposit amount. However, it's crucial to note that loans won't be sanctioned for specific purposes like real estate business, agro-based activities, or for the intention of re-lending.
What happens if I withdraw my NRE FD before its maturity?
If an NRE FD is prematurely withdrawn before completing 1 year, no interest will be payable. However, if the deposit is above Rs. 5 crores, a 1% penalty will be charged. It's always advisable to be aware of the terms and conditions related to premature withdrawal to avoid any financial loss.
Can I transfer funds from an NRO or FCNR account to open an NRE FD?
No, Axis Bank's policy does not permit the transfer of funds from existing NRO or FCNR accounts to open an NRE FD. This is to ensure clear demarcation and compliance with regulatory guidelines.
Is there an option to nominate someone for my NRE FD?
Certainly! Axis Bank allows NRE FD holders to make nominations. This is a beneficial feature as it ensures that in the event of the depositor's demise, the nominated individual can easily claim the deposit without any legal hassles.
Does Axis Bank automatically renew the NRE FD upon maturity?
Yes, Axis Bank offers the convenience of automatic renewals for NRE FDs. However, this is contingent on the customer providing specific auto-renewal instructions at the time of account opening or during the tenure of the deposit.
Aayush is a strategic growth marketer with over 6 years of experience working in the US and European markets for various financial services companies. He has a proven track record of success in helping businesses grow, increase revenue, and improve marketing strategies.
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