Content overview:
1. Introduction
2. Features of Indian Bank NRO FD
3. Indian Bank NRO FD Interest Rates 2023
4. Benefits of Investing in Indian Bank NRO FD
5. FAQs
Introduction
In 2024, the Non-Resident Ordinary (NRO) Fixed Deposit (FD) at Indian Bank continues to be a significant financial instrument for Non-Resident Indians (NRIs) looking to invest their income earned in India.
In this blog, we will delve into the current interest rates, key features, and the benefits of the NRO FD, providing a comprehensive guide to help NRIs make informed decisions about managing their earnings effectively while residing abroad.
The Indian Bank NRO FD is designed considering the unique financial requirements of NRIs. Here are some of its salient features:
- Account Type and Currency: The NRO FD account is maintained in Indian Rupees. It's primarily meant for NRIs to deposit and manage their income earned in India.
- Purpose of NRO FDs: While NRE (Non-Resident External) and NRO (Non-Resident Ordinary) FDs are meant for NRIs, there's a fundamental difference between the two. While NRE FDs are meant for depositing foreign income in India, NRO FDs are designed for incomes like rent, dividends, or pensions earned in India.
- Tax Implications: The interest earned on Indian Bank NRO FD is subject to Tax Deducted at Source (TDS) as per the Indian Income Tax Act. However, NRIs can benefit under the Double Taxation Avoidance Agreement (DTAA) if India has such an agreement with the NRI's resident country.
Indian Bank NRO FD Interest Rates 2024
The interest rates offered by the Indian Bank on its NRO FDs are competitive, ensuring that NRIs get a good return on their investments. The rates vary based on the tenure of the deposit and the amount invested. Here's a detailed breakdown of the Indian Bank NRO FD rates for 2024:
Features of Indian Bank NRO FD
The Indian Bank NRO FD is designed keeping in mind the unique financial requirements of NRIs. Here are some of its salient features:
- Account Type and Currency: The NRO FD account is maintained in Indian Rupees. It's primarily meant for NRIs to deposit and manage their income earned in India.
- Purpose of NRO FDs: While both NRE (Non-Resident External) and NRO (Non-Resident Ordinary) FDs are meant for NRIs, there's a fundamental difference between the two. While NRE FDs are meant for depositing foreign income in India, NRO FDs are designed for incomes like rent, dividends, or pension earned in India. This distinction is crucial for tax purposes.
- Tax Implications: The interest earned on Indian Bank NRO FD is subject to Tax Deducted at Source (TDS) as per the Indian Income Tax Act. However, NRIs can avail benefits under the Double Taxation Avoidance Agreement (DTAA) if India has such an agreement with the NRI's resident country.
Indian Bank NRO FD Interest Rates 2024
The interest rates offered by the Indian Bank on its NRO FDs are competitive, ensuring that NRIs get a good return on their investments. The rates vary based on the tenure of the deposit and the amount invested. Here's a detailed breakdown of the Indian Bank NRO FD rates for 2024:
Tenure and Interest Rates
| Tenure |
Less than Rs. 2 Crore (% p.a.) |
Rupees 2 Crore to Rs. 5 Crore (% p.a.) |
| 1 year |
6.10 |
6.70 |
| Above 1 year to less than 2 years |
6.30 |
6.65 |
| 2 years to less than 3 years |
6.70 |
6.10 |
| 3 years to less than 5 years |
6.25 |
6.00 |
| 5 year |
6.25 |
6.00 |
| Above 5 years |
6.10 |
6.00 |
The table shows that the bank offers attractive rates for various tenures, making it a versatile choice for NRIs with different investment horizons.
Benefits of Investing in Indian Bank NRO FD
- Competitive Interest Rates: As highlighted in the table above, Indian Bank offers some of the best interest rates in the industry for NRO FDs, ensuring that NRIs get a good return on their investments.
- Flexibility: Tenures range from 1 year to more than 5 years, so NRIs can choose a term that aligns with their financial goals.
- Safety and Security: Indian Bank is one of India's oldest and most trusted banks. Deposits made in the bank are secure and insured up to Rs. 5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- Easy Account Management: NRIs can easily manage their Indian Bank NRO FD through Internet banking. They can view their account details, check interest rates, and renew their FDs online.
- Loan Facility: NRIs can take out loans against their NRO FDs at attractive interest rates. This can be especially beneficial in financial emergencies.
- Repatriation: While the principal amount in an NRO FD is non-repatriable, the interest earned can be repatriated after deducting the applicable taxes.
- Tax Benefits: NRIs can avail of benefits under the Double Taxation Avoidance Agreement (DTAA) if India has such an agreement with the NRI's resident country. This can lead to significant tax savings.
In Conclusion
Indian Bank NRO FD stands out as a reliable and beneficial financial product for non-resident Indians (NRIs) looking to maintain their earnings in India. With competitive Indian Bank NRO FD rates of 2024, the bank ensures that its customers get the best returns on their deposits.
The flexibility in tenure, combined with the bank's reputation and customer-centric approach, makes it a preferred choice for many NRIs.
FAQs
Q1. Can I open an Indian Bank NRO FD account from abroad?
Yes, Indian Bank offers online facilities allowing NRIs to open an NRO FD account from anywhere in the world.
Q2.Is the principal amount in an NRO FD repatriable?
The principal amount in an NRO FD is non-repatriable. However, the interest earned can be repatriated after deducting applicable taxes.
Q3. Can I convert my existing resident account to an NRO account?
Yes, if you have changed your status to NRI, you can convert your resident account to an NRO account.
Q4. What happens if I prematurely withdraw my NRO FD?
Premature withdrawal of the NRO FD will attract a penalty, and the interest will be paid at a rate lower than the contracted rate.
Q5. Can I get a loan against my NRO FD?
Yes, Indian Bank offers loans against NRO FDs at competitive interest rates.
Q6. Is a nomination facility available for NRO FD?
Yes, you can nominate a resident or non-resident individual as a nominee for your NRO FD.
Q7.How is the interest on NRO FD taxed?
The interest earned on NRO FD is subject to TDS as per the prevailing tax rates in India.
Q8. Can two NRIs jointly open an NRO FD account?
Yes, two or more NRIs can jointly open an NRO FD account with Indian Bank.
Q9. Is the interest rate on NRO FD fixed for the entire tenure?
Yes, the interest rate remains fixed for the chosen tenure unless there's a premature withdrawal.
Q10. Are there any additional benefits for senior citizen NRIs on NRO FD?
No, the interest rates for NRO FD are the same for all age groups, and there's no additional benefit for senior citizen NRIs.
Arnav is a dedicated product leader with a passion for finance and fintech. He graduated from IIT Bombay and IIM Calcutta and heads the Product team at Vance. He has extensive experience in the financial sector, with a deep understanding of the cross-border space. In his free time, he enjoys playing the guitar, rock climbing, and training for triathlons.
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