Depositing money in your Bank Account is a safe strategy. However, it fails to grow your money. Investing is an effective way to grow your money and build wealth over time. This helps you build a significant financial corpus that lets you realise various goals and helps you sail through emergencies. Hence, you should actively invest.

A Fixed Deposit is a go-to investment option for several investors. It earns modest interest throughout its tenure. If you are a non-resident Indian investor, you can explore an NRI Fixed Deposit. It is much like a regular FD but specifically caters to NRI investors like you. NRI FDs can be broadly classified into three main types: Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident Deposits. Here is a detailed guide:

NRO Fixed Deposits

An NRO FD allows you to secure and grow your Indian Rupee Income. You can invest in it individually, with another resident Indian, or with an NRI. The interest you earn from an NRO FD is taxable in India. It may also be taxable in your country of residence if they haven't signed the Double Taxation Avoidance Agreement. The principal amount is not fully repatriable, but the interest earned is fully repatriable.

NRE Fixed Deposits

An NRE FD lets you park your foreign currency income in India and earn a competitive interest rate on it. You can invest it individually or with one or more NRIs. The interest earned from an NRE FD is 100% tax-free, allowing you to enjoy your investment returns to the fullest. The principal amount and interest income are fully repatriable, ensuring you can readily transfer funds to your country of residence in your time of need without any hassles.

FCNR Deposits

An FCNR FD allows you to hold your investment in a foreign currency, protecting it from INR currency fluctuations. You can choose any currency from the United States Dollar, Great Britain pound, Australian Dollar, Canadian Dollar, Singaporean Dollar, and Hong Kong Dollar.

The interest earned from an FCNR Account is tax-free, letting you make the most of your investment. You also enjoy full repatriation with your deposit, which means you can access your hard-earned money without any restrictions. Note that the interest earned from the FCNR FD will vary depending on the currency you choose to hold your investment in. Hence, make sure you carefully consider the currency you would like to hold your investment in.

A common pointer between all NRI FDs is the credit facility. You can obtain up to 80-90% of the deposit value as a Loan amount. Consider availing this facility to protect your long-term investment and meet your financial requirement without struggle. Whether you plan to invest in an NRI FD or apply for a Loan against an existing FD investment, you can do so from your fingertips thanks to online banking platforms.