Therefore, NRIs should check with their bank if the currency of their resident country is allowed or not. The NRE FD must be funded in any convertible currency like USD, EUR, GBP, AED, SGD, and JPY amongst others. ⬆️ Back to top Can any currency be used to fund the NRE FD?
The current interest rate, at the time of maturity, will be applicable for the new FD. NRE FDs, depending on the bank, may be automatically renewed at the time of maturity. ⬆️ Back to top Can an NRE FD be automatically renewed? If the objective is to invest in the debt asset class in India, then NRIs should choose the NRE FD over debt mutual funds since NRE FDs offer guaranteed tax-free (in India) returns. Debt mutual funds offer a fluctuating return with capital gains tax. NRE FDs offer a known and fixed return without tax. ⬆️ Back to top Are NRE FDs better than debt mutual funds? Many banks offer loans on NRE FD as well. The NRE FD principal and interest are fully repatriable. An NRI’s foreign earnings fund these FDs and are tax-free in India. NRE Fixed Deposit is a fixed deposit created in rupees in a bank in India by an NRI. What is the NRE Fixed Deposit investment product? Please use the Find feature of your browser to look for specific items of interest. This article compiles an exhaustive list of FAQs on the concept of NRE Fixed Deposits (NRE FD).
