Content overview:
1. Introduction
2. Key Highlights of ICICI NRO FD
3. Understanding ICICI NRO FD Rates
4. Features and Benefits of ICICI NRO FD
5. How to Open an ICICI NRO FD Account
6. Premature Withdrawal and Its Implications
7. FAQs
Introduction
ICICI Bank, a leading name in the Indian banking sector, has consistently been at the forefront of NRI banking services. Recognizing the financial needs of non-resident Indians, ICICI Bank offers a plethora of products tailored to this demographic. Among these, the ICICI NRO FD stands out as a preferred choice for many.
This product is specifically designed to help NRIs earn substantial returns on their income generated within India. In this article, we examine how the ICICI NRO FD allows non-resident Indians to benefit from interest rates that are competitive and on par with those offered to resident Indians, making it a lucrative investment option.
Key Features of ICICI NRO FD
For NRIs who aim to maximize their returns on Indian-generated funds, the ICICI NRO FD is an optimal choice. Here's a closer look at its salient features:
- Competitive Returns: The ICICI NRO FD interest rates are designed to offer returns comparable to those available to resident Indians. This ensures that your hard-earned money is secure and grows steadily.
- Flexibility in Joint Holdings: The ICICI NRO FD offers the advantage of joint holdings. This means NRIs can hold this account jointly with residents and non-residents, adding a layer of convenience in account management.
- Loan Benefits: One of the standout features of the ICICI Bank NRO FD is the provision to avail loans. Account holders can get loans of up to 90% of their deposit amount at attractive interest rates. This ensures that even while your money grows, you can access funds whenever needed.
With these key features, the ICICI NRO FD positions itself not just as a regular financial product but as a comprehensive financial solution tailored to meet the unique needs of NRIs.
Understanding ICICI NRO FD Rates
One of the primary attractions of the ICICI NRO FD is its competitive interest rates. These rates are structured to ensure that NRIs get the best returns on their Indian income. Let's delve deeper into the ICICI NRO FD interest rates:
ICICI NRO FD Rates for Deposits Below Rs. 2 Crore (Effective from 17th February 2024):
Maturity Period and Interest Rates
| Maturity Period |
Interest rates (per cent per annum) |
| 7 days to 14 days |
3.00% |
| 15 days to 29 days |
3.00% |
| 30 days to 45 days |
3.50% |
| 46 days to 60 days |
4.25% |
| 61 days to 90 days |
4.50% |
| 91 days to 120 days |
4.75% |
| 121 days to 150 days |
4.75% |
| 151 days to 184 days |
4.75% |
| 185 days to 210 days |
5.75% |
| 211 days to 270 days |
5.75% |
| 271 days to 289 days |
6.00% |
| 290 days to less than 1 year |
6.00% |
| 1 year to 389 days |
6.70% |
| 390 days to < 15 months |
6.70% |
| 15 months to < 18 months |
7.20% |
| 18 months to 2 years |
7.20% |
| 2 years 1 day to 3 years |
7.00% |
| 3 years 1 day to 5 years |
7.00% |
| 5 years 1 day to 10 years |
6.90% |
| 5 Years (80C FD) – Max to `1.50 lac |
7.00% |
ICICI NRO FD Rates for Deposits of Rs. 2 Crore to Less Than Rs. 5 Crore:
Maturity Period and Interest Rates
| Maturity Period |
Interest rates (per cent per annum) |
| 7 days to 14 days |
4.75% |
| 15 days to 29 days |
4.75% |
| 30 days to 45 days |
5.50% |
| 46 days to 60 days |
5.75% |
| 61 days to 90 days |
6.00% |
| 91 days to 120 days |
6.50% |
| 121 days to 150 days |
6.50% |
| 151 days to 184 days |
6.50% |
| 185 days to 210 days |
6.75% |
| 211 days to 270 days |
6.75% |
| 271 days to 289 days |
6.85% |
| 290 days to less than 1 year |
6.85% |
| 1 year to 389 days |
7.25% |
| 390 days to < 15 months |
7.25% |
| 15 months to < 18 months |
7.05% |
| 18 months to 2 years |
7.05% |
| 2 years 1 day to 3 years |
7.00% |
| 3 years 1 day to 5 years |
7.00% |
| 5 years 1 day to 10 years |
7.00% |
| 5 Years (80C FD) – Max to `1.50 lac |
NA |
(Note: The rates mentioned above are subject to change, and it's always advisable to check the bank's official website or contact the bank directly for the most updated rates.)
Features and Benefits of ICICI NRO FD
The ICICI Bank NRO FD is not just about attractive interest rates. It's a comprehensive package designed to offer multiple benefits to its account holders. Some of the standout features include:
- Low deposit amount: With just ₹ 25,000, you can start your NRO FD with ICICI Bank.
- Multiple tenure options: Whether you're looking for a short-term investment or a long-term one, ICICI offers tenures ranging from 7 days to 10 years.
- Joint holder option: You have the flexibility to add an Indian resident as a joint holder.
- Easy movement of funds: The interest earned in the current financial year is fully repatriable after deducting tax. Moreover, funds in the NRO account can be repatriated up to USD one million per financial year for all bonafide purposes.
- Attractive loan options: Need a loan? Get up to 90% of your deposit amount at attractive interest rates, with a maximum limit of INR 500 Lakhs.
- Hassle-free renewal: No need to go through the renewal process manually. ICICI Bank offers automatic renewal of your deposits upon maturity.
- Competitive exchange rates: Convert your foreign currency into rupees at competitive exchange rates.
- Tax implications: The interest earned on NRO deposits is subject to tax deduction at source. However, you can reduce this TDS by availing yourself of the DTAA benefit facility.
How to Open an ICICI NRO FD Account
Opening an ICICI NRO FD is a straightforward process, designed to be hassle-free for both residents and non-residents. Here's a step-by-step guide:
- Visit the Nearest ICICI Branch: Whether you're in India or abroad, you can walk into any ICICI branch to open an NRO FD account.
- Online Application: If you're tech-savvy and prefer online methods, ICICI Bank offers a seamless online application process. This is especially beneficial for NRIs residing outside India.
- Submit Necessary Documents: Depending on whether you're applying from within India or from abroad, the documentation requirements vary:
For NRIs applying in India:
- Passport: First and last four pages.
- Valid work permit/employment visa.
- If your visa has expired, an acknowledged renewal application with visa authorities.
- Overseas address proof.
For NRIs applying from outside India:
- Self-attested and duly attested photocopies (by notary/ embassy official/ consulate official/ bank official) of:
- Passport: First and last four pages.
- Valid work permit/employment visa.
- If your visa has expired, an acknowledged renewal application with visa authorities.
- Both overseas and Indian address proofs.
- Funding the Account: Once your account is set up, you can fund it through various means like cheque, DD, inward remittance (wire, Vostro, M2I). Ensure that the details match with the application form, especially in cases of DD and remittance.
- Account Confirmation: Once all the formalities are completed, you'll receive an Electronic Deposit Confirmation Advice (E–DCA) on your registered email ID within one working day.
Premature Withdrawal and Its Implications
While the ICICI NRO FD offers attractive interest rates and other benefits, there might be situations where you need to break the FD before its maturity. Here's what you need to know about premature withdrawals:
- Minimum Tenure: The minimum tenure for ICICI NRO FD is 7 days. If you decide to break the FD before this period, no interest will be paid.
- Interest Calculation Post 7 Days: After the completion of 7 days, the interest on the prematurely withdrawn amount will be calculated at the rate applicable for the period the deposit was held with the bank or the contracted rate, whichever is lower.
Fixed Deposit Tenure and Penalty
| Fixed Deposit Tenure Selected |
Penalty (FD less than Rs. 5 crore) |
Penalty (FD Rs. 5 crore & above) |
| Less than 1 year |
0.50% |
0.50% |
| 1 year to less than 5 years |
1.00% |
1.00% |
| 5 years and above |
1.00 - 1.50% |
1.00 - 1.50% |
- Monthly Payouts: If you've opted for monthly payouts, the interest will be paid at a discounted rate in case of premature withdrawal.
In Conclusion
ICICI NRO FD stands out as a robust financial instrument for NRIs, offering them the opportunity to earn competitive interest on their India-generated income. Its array of features, including attractive interest rates, flexible tenures, and the option for premature withdrawal, cater to the diverse needs of the NRI community. Furthermore, the bank's reputation for customer-centric services ensures that account holders receive a seamless banking experience.
FAQs
Q1. What is the minimum amount required to open an ICICI NRO FD?
The ICICI NRO FD can be initiated with a modest sum of ₹ 25,000. This low threshold ensures that a wide range of NRIs can benefit from the attractive ICICI NRO FD rates and grow their India-generated income regardless of their financial stature.
Q2. Can I repatriate the interest earned on my ICICI NRO FD?
Absolutely. The interest accrued on your ICICI NRO FD during the current financial year is repatriable post the deduction of applicable taxes. This feature offers flexibility to NRIs, allowing them to transfer their earnings back to their resident country if needed.
Q3. Is there a penalty for premature withdrawal of ICICI NRO FD?
Yes, ICICI Bank imposes penalties for premature withdrawals to ensure the stability of the deposited funds. For FDs with a tenure less than 1 year, a penalty of 0.50% is levied. The exact penalty varies based on the chosen tenure of the FD.
Q4. How can I avail the DTAA benefit on my ICICI NRO FD?
The Double Taxation Avoidance Agreement (DTAA) is a facility that allows you to reduce the TDS on your NRO FD interest. To avail of this, you must provide ICICI Bank with a self-declaration in the prescribed format, a self-attested copy of your PAN card, Form 10F, and a tax residency certificate for the ongoing year.
Q5. Can I open a joint ICICI NRO FD account with a resident Indian?
Yes, ICICI Bank offers the flexibility of opening a joint NRO FD account. This can be done with either another non-resident or a resident Indian, making it convenient for NRIs to manage their finances in collaboration with family or partners residing in India.
Q6. What is the maximum loan amount I can avail against my ICICI NRO FD?
ICICI Bank provides a loan facility against your NRO FD. You can secure a loan of up to 90% of your deposit amount at competitive interest rates. The upper limit for such loans is INR 500 Lakhs, ensuring substantial financial support when needed.
Q7. How long does it take to receive the Electronic Deposit Confirmation Advise (E-DCA)?
ICICI Bank is committed to swift and transparent communication. If you've opted to receive account statements via email, the E-DCA, which confirms your deposit, will be sent to your registered e-mail ID within just 1 working day.
Q8. Is the principal amount in ICICI NRO FD repatriable?
Yes, the principal amount in the NRO FD is repatriable, but with certain conditions. You can repatriate funds from the NRO account up to USD one million per financial year for genuine purposes, ensuring you have access to your funds internationally.
Q9. How can I reduce the TDS on the interest earned from ICICI NRO FD?
The interest earned on ICICI NRO FD is subject to TDS. However, by availing the DTAA facility provided by ICICI Bank, you can significantly reduce this TDS. This involves submitting certain documents and declarations to the bank.
Q10. What is the tenure range for ICICI NRO FD?
ICICI Bank offers a diverse range of tenures for its NRO FD to cater to various financial goals of NRIs. You can choose a short-term deposit starting from just 7 days or opt for a long-term deposit extending up to 10 years, depending on your financial planning.
Tejas is an accomplished Chartered Accountant with a passion for finance. With a decade's worth of extensive experience in the banking and credit domain, he has a deep understanding of the financial landscape across consulting and start-ups. In his time away from work, Tejas enjoys sharing his knowledge and helping others understand the intricacies of this complex domain.
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