What is IndusInd Bank FCNR Account?
An IndusInd Bank FCNR (Foreign Currency Non-Resident) Account is for NRIs to keep their foreign earnings in different foreign currencies. It helps protect your money from currency value changes while offering tax benefits in India. The account earns interest in the currency you choose and allows easy transfer of funds back to your home country. Both the principal and interest are tax-free in India, making it a good option for NRIs to save and grow their money.
Features of IndusInd Bank FCNR Account
The key features of the IndusInd Bank FCNR Account are as follows:
- Multiple Currency Options: You can hold funds in 6 foreign currencies – USD, GBP, EUR, JPY, CAD, and AUD.
- Repatriable Funds: Both the principal and interest are fully repatriable, allowing easy transfer of funds abroad.
- Tax Exemption: Interest earned on the deposit is exempt from tax in India.
- Compounded Interest: The interest on FCNR deposits is compounded every 180 days, helping your investment grow.
- Flexible Tenure: You can open the deposit for a minimum of 1 year and a maximum of 5 years.
- Interest Earning: To earn interest, the deposit must be kept for at least one year.
- Attractive Interest Rates: IndusInd Bank offers competitive interest rates on FCNR deposits.
- Ideal for Foreign Savings: The account is a great way for NRIs to manage and grow their foreign earnings safely.
- Pre-mature Withdrawal Details:
- Less than 1 Year: No interest payable.
- More than 1 Year: Interest is calculated based on the actual period the deposit remains with the bank, minus 0.25%.
- SWAP Costs: Conversion costs between FCNR currency and Indian Rupees will be recovered based on prevailing market rates at the time of pre-mature withdrawal.
Steps to Open an IndusInd Bank FCNR Account
Follow the steps mentioned below to open an IndusInd Bank FCNR Account in India:
- Check Your Eligibility: You need to be a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) to open an FCNR account.
- Choose the Currency: Select the foreign currency for your account, such as USD, GBP, EUR, or JPY.
- Submit Required Documents: Provide the necessary KYC documents, including your passport, visa, address proof, and proof of NRI status.
- Apply Online or Visit the Bank: You can either apply online through the IndusInd Bank website or visit a branch to complete the process.
- Make the Initial Deposit: Make the minimum deposit required for the currency you choose to open your account.
- Account Activation: Once your documents are verified, your FCNR account will be activated, and you will receive your account details.
Eligibility Criteria to Apply for IndusInd Bank FCNR Account
The following category of individuals are eligible to open an IndusInd Bank FCNR Account in India:
- Non-Resident Indian (NRI) Status: Must be an NRI or a Person of Indian Origin (PIO) residing outside India.
- Age Requirement: No specific age limit, but the applicant must be legally capable of holding an account.
Documents Required to Apply for IndusInd Bank FCNR Account
An NRI must provide the following document to open the IndusInd Bank FCNR Account in India:
- Overseas Address Proof (utility bill, bank statement, or lease agreement)
- Passport-Sized Photographs
- Source of Income (bank statement or salary slip, to confirm foreign income sources)
Benefits of Opening IndusInd Bank FCNR Account
The key benefits of opening an IndusInd Bank FCNR account are mentioned below:
- Risk-Free Investment: FCNR deposits work like fixed deposits with a fixed interest rate throughout the term, ensuring a risk-free investment as the rate is not affected by market changes.
- Protection from Forex Changes: Your funds are kept in foreign currency, so there's no need for currency conversion. You get both the principal and interest in the same currency, protecting you from currency fluctuations.
- Tax-Free Interest in India: Interest earned on FCNR deposits is tax-free in India. However, it might be taxable in your home country, so it's best to consult a tax advisor.
- Easy Fund Transfers: Both the principal and interest can be fully repatriated, allowing you to transfer money to your resident country without any restrictions.
- Compounded Interest: The interest on FCNR deposits is compounded every six months, making it a more attractive investment option.
- Multiple Currency Options: You can open an FCNR account in six international currencies: USD, GBP, AUD, JPY, CAD, and EUR.
Conclusion
IndusInd Bank FCNR Account offers good interest rates for NRIs, allowing savings in foreign currencies. It provides flexible tenures and easy repatriation options. The account protects deposits from currency fluctuations, making it a safe and convenient option for long-term savings.
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