IndusInd NRE FD Rates

IndusInd Bank is a globally reputed financial institution with a massive footprint that caters to the banking needs of more than 3 Crore customers. With a strong network of 6,000 distribution points and bank branches located across the length and breadth of the country, IndusInd bank offers a wide array of financial products to Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs). IndusInd Bank NRE FD rates are the best in the market and their banking services include personal loans, credit card services, vehicle loans and commercial credit.

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IndusInd Bank is considered a reliable banking partner to small businesses and their clients. When it comes to foreign income flow management, this bank offers the best interest rates and other ancillary services that are highly advantageous to the NRIs.

The services of the bank ensure customer satisfaction and employees strive to increase the collaboration with clients and offer the latest financial solutions to meet their credit and other banking needs. IndusInd bank not only strives to enhance its productivity and efficiency but also tries to inculcate the same financial discipline among its clients.

What is an NRE Fixed Deposit Account?

It stands for non-resident external accounts and differs from savings and recurring deposit accounts. NRE account holders are eligible to open the highly popular fixed deposit account. These accounts offer a mechanism through which non-resident Indians can deposit their life savings or monthly income which is denominated in foreign currency and the same is transferred to the bank account of an Indian financial institution. Apart from that, the amount is converted into Indian currency status upon the predetermined period set by the depositor and it is also completely devoid of any tax application.

Required Documents to Open an NRE FD Account

Self-attested photocopies of the following should be submitted at the branch during opening the NRE FD account:

  • The concerning pages of the passport which reflect the name, residential address, date of birth, expiry date and signature of the account holder
  • Authorized work permit /employment visa and Residence Permit
  • Address proofs

When attempts are being made to open an IndusInd Bank NRE FD rate account from outside of India, the above documents should be self-attested by the holder of the documents and also duly attested by the local notary, Embassy Officials and Bank representatives and Consulate officials.

IndusInd Bank Fixed Deposit NRE Accounts

Non-resident external account fixed deposit account is a tax-free instrument and can undergo complete repatriation into the Indian rupee-denominated deposit account. This scheme is particularly useful to non-resident Indians and persons of Indian origin who are earning high salaries and assured of sustainable and stable income flows from other countries.

What are the Features of IndusInd Bank NRE Fixed Deposits?

The following are the salient features of IndusInd NRE Fixed Deposits:

  • The funds that are deposited in the NRE account enjoy full repatriation under the original terms. No charges are applied when repatriating the amount into the NRE account.
  • This is applicable to both principal and interest components of the IndusInd Bank NRE FD rate account.
  • The deposit amount in the NRE FD account enjoys complete tax exemption. The interest accrued annually also does not undergo taxation and the funds are entirely maintained in the Indian currency
  • IndusInd Bank NRI FD rate accounts earn interest amounts only under the mandatory condition of the account is kept open for at least one year with the bank.
  • IndusInd Bank NRE fixed deposit rates accounts have the interest compounded in a quarterly fashion.

Benefits of IndusInd NRE FD Accounts

The key benefits offered by IndusInd NRE FD Accounts are as follows:

  • Compared to others, IndusInd bank offers enhanced interest rates on NRI accounts. Both the interest component and the principal amount do not undergo taxation in Indian currency.
  • The IndusInd NRI FD rate is highly competitive and offers the best interest rate when compared to other public sector banks. Both interest and principal components have the qualification of repatriation to the country of choice of the account holder.
  • Non-resident Indians can enjoy IndusInd Bank NRE fixed deposit rates on a joint basis as the account can be opened on mutual names.
  • Deposit insurance and credit guarantee corporation (DCGC) offers full insurance cover to IndusInd Banks’s NRI customers. In case of the unlikely scenario of the bank’s failure, the account holders are given compensation up to a maximum of Rs 5 Lakh.
  • Fixed deposits enjoy good tenure conditions offered by the bank which is not only flexible but can be extended to up to 10 years.
  • IndusInd NRE fixed deposit rates are rupee-denominated and specified for deposits of foreign earnings. They can be fully enjoyed with a hundred per cent repatriation capability which also includes the interest component.
  • The provision of loans is present in the IndusInd NRE FD rate accounts. Non-resident Indians can service their immediate financial requirements by availing of instant loans by offering IndusInd NRE FD as collateral security.
  • After going through the credit history of the borrower the bank management can grant up to a maximum of 90 per cent of the fixed deposit at the competitive interest rate. The lowest fixed deposit amount is Rs 25000.
  • One of the greatest advantages of the IndusInd Bank NRE FD rate account is the provision of the automatic renewal of the interest and principal components that are available on maturity. The tenure of the IndusInd Bank NRE Fixed Deposit rate accounts is a minimum of 1 year and a maximum tenure limit of 10 years is provided.

IndusInd Bank NRI FD Rates

IndusInd Bank offers completely repatriable fixed deposit options for Non-Resident Indians and Persons of Indian Origin. The Fixed deposits are completely immune to taxation and have amazing interest rates. The tenures of the fixed deposits are between the ranges of 12 months to 10 years.

*The IndusInd Bank NRI FD rates are subject to change depending on the internal policies of the bank and are entirely discretionary. The rates mentioned are valid as of 13th July 2020.

NRE FD Rates of Interest

The quantum of interest rates of an NRE fixed deposit account normally depends on the duration for which it is deposited. IndusInd Bank NRE fixed FD rates go up to a maximum of eight per cent.

NRE fixed deposits of less than 2 Crore:

  • Premature Withdrawals are now authorized
  • For a tenure bracket of 1 year to less than 3 years, the regular FD rate per annum is 7%
  • For a tenure bracket of 3 years to less than 61 months, the regular FD rate per annum is 6.75%
  • For tenure bracket of 61 months and above, the regular FD rate per annum is 6.55%

The following points need to be considered carefully before opening an IndusInd NRE fixed deposit:

  • Any income that crosses the threshold of the tax exemption amount is subject to the taxation laws of India and tax deductions are made according to the extant policies of the bank.
  • The deposit rates of the NRE accounts are only applicable to FD tenure of more than 1 year.
  • Senior citizens are given an additional interest rate of 0.5 per cent on the existing rates. In case the senior citizen chooses to enhance the number of fixed deposits to more than 2 Crore, then the favourable interest rate is not offered.

For NRE fixed deposits of Rs 2 Crore to Rs 5 Crore:

  • For a tenure bracket of 1 year to less than 18 months, the regular FD rate per annum is 6.75%
  • For a tenure bracket of 18 months to less than 1 year and 7 months, the regular FD rate per annum is 7%
  • For a tenure bracket of 1 year, 7 months to 61 months and more, the regular FD rate per annum is 6.75%
  • Premature withdrawals are not allowed

The following rates are applicable on all IndusInd Fixed deposit rates with effect from April 26th 2021:

  • Investors should note that the interest rate is compounded on a quarterly basis. The effective annual returns are equivalent to annualized yield. The simple interest is calculated on the maturity deposit when the FD tenure is up to a maximum of 180 days.
  • In the absence of a PAN card from the investors, the total amount is liable to be charged 20 per cent as deductions.
  • NRE deposits are subject to interest accruals only when the minimum period of account opening is 1 year. The above-mentioned rates are only for individual investors and any institutional investors such as Term money, call money and Notice money market participants are precluded from enjoying the above rates.

In a Nutshell!

There are many financial institutions that are offering competitive interest rates on NRE Fixed deposits and it is tough to select your banking partner. However specific factors must be taken into account such as trustworthiness and balance sheet strength of the bank. The prime focus should be on the reputation of the bank in delivering NRI Banking services. Also, investors are recommended to check for the presence of the banking branch in the country they live in presently such as the USA and UK.

There are many advantages to opening an IndusInd NRI FD rate account. However, individuals should exercise due caution to successfully safeguard their deposits against market fluctuations in the exchange rate. The individuals have to decide the fixed deposit tenure in such a way that their investment does not undergo any substantial risk. IndusInd Bank NRE Fixed Deposit rate account openers should also note that any deposits of foreign currency will need to bear the risk of fluctuation in RBI interest rates when converting into Indian rupees.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

Written By: PolicyBazaar - Updated: 20 July 2021
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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