{"id":2528,"date":"2019-09-30T09:05:30","date_gmt":"2019-09-30T09:05:30","guid":{"rendered":"https:\/\/www.piczasso.com\/?p=2528"},"modified":"2019-09-30T09:05:30","modified_gmt":"2019-09-30T09:05:30","slug":"mini-guide-to-understand-fd-for-nris","status":"publish","type":"post","link":"https:\/\/www.piczasso.com\/mini-guide-to-understand-fd-for-nris\/","title":{"rendered":"Mini Guide to Understand FD for NRIs"},"content":{"rendered":"

If you an NRI and wondering how a fixed deposit works as an investment option in India, read this brief guide to have all your queries answered.<\/p>\n

First things first, an NRI cannot have a standard savings account opened in Indian banks. As per the Foreign Exchange Management Act (FEMA), NRI status in the context of taxation and investment is determined based on intent. So, once you have shifted base across the shores, this is an intentional step, thus changing your residential status.<\/p>\n

The following are the three most popular types of bank accounts for NRIs.<\/p>\n

Non-Resident Ordinary (NRO) <\/strong>\u2013 If you are moving abroad, after having worked in India, the savings bank account in India has to converted to an NRO account. A savings bank account for the NRI, it is funded in rupees or foreign currency. Fixed or recurring deposits for less than a year or more can be invested through this account. For those NRIs, who have sources of income back in India, this account is suitable and has a host of other benefits too.<\/li>\n<\/ol>\n
You can invest directly in shares and mutual funds, and there are no limitations on the types of credits you make to this account. You cannot repatriate money from this account; hence, it is best to meet expenses in India only. Or else, you can choose an NRO fixed deposit. Learn all you can about what a fixed deposit<\/strong><\/a>isand let these funds accumulate for a longer period.<\/p>