Friday, September 23, 2011

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.

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