Fixed deposit options for Non-Resident Indians

Fixed deposits have become a preferred choice to make investments in the last few years because of the surge in the deposit rates. The facility of deposit schemes is not only available for the resident Indian citizens but even Non-Resident Indians can avail the benefits of this facility.

The time duration for Foreign Currency Non-Resident Account (Banks) Scheme ( FCNR) scheme can vary from minimum 12 months to a maximum of 60 months, for Non-Resident Rupee (NRE) Account Scheme and Non-Resident Ordinary Rupee Account Scheme (NRO Account) it depends on the bank which is offering that scheme.

There are two types of schemes out of which a person can choose from, one is Special Term Deposits where the interest is compounded and then added to the principal amount and then the entire amount is paid after the maturity of the scheme.

The other is Ordinary Term Deposit Scheme where the interest earned is credited to the account of the customer on monthly, quarterly, half-yearly or yearly basis, it can vary from bank to bank the most beneficial out of them is when the interest is compounded monthly.

An investor can even borrow a loan from the bank against his deposits.

Absolutely right time to invest under term deposit scheme

For a person who is not in any immediate requirement of funds can make the most of the moment by investing his savings under fixed deposits scheme. The facility of fixed deposits is available with almost all the banks and at this point of time all of them are offering lucrative deposit schemes.

As a effect of the monetary policy of Reserve Bank of India which it has adopted to rein in the inflation by increasing the policy rates at regular intervals that has prompted the lenders to increase their lending rates due to which there has been a dip in the number of new borrowers applying for loan.

In order to arrange for the much required funds banks are offering increased rates on the term deposits facility to lure customer. This is the best time for people who believe in risk free investing as there is no risk involved to the investments made under this facility plus an investor can avail maximum possible rates.

The rates are at their all time high which had provided a perfect platform for the people to maximize their savings.

Fixed Deposits are always the safest investment option

Fixed deposits are believed to be the safest investment options, a person can invest under fixed deposits scheme and he can be sure about the returns that he will get after the invested money has matured, but in that gives duration there are certain events that may occur which can make an investor uncertain about his investments in case of liquidation, cancellation of banking licenses or merger.

Under such circumstance Deposit Insurance Scheme by deposit insurance and credit guarantee corporation (DICGC) can keep the investor in high spirits. Fixed deposit of all the banks is insured by (DICGC) and more importantly the cost of premium is to be borne by the bank itself.

An investor can get up to 1 lac including principal and interest amount if any such situation arises, but if the person has also got some due pending on the lender to be paid then the amount will be deducted from the amount that the person is entitled to receive.

Investors also need not to get involved in the claim settlement procedure, everything will be taken care of by DICGC and hence a person can be sure about his returns, whatever the situation may be.