Read on to know more about the Pros and cons of FCNR Deposit Account in detail:
What is an FCNR Deposit Account?
FDs (Fixed Deposits) is one of the safest options for investment, not only for Indian residents but for non-resident Indians (NRIs). One of the common FDs among NRIs is the Foreign Currency Non-Resident Bank (FCNR) account. FCNR is a fixed deposit account that is specifically designed to provide NRIs an option to keep their money in desired foreign currencies of their choice in Indian Banks and earn better returns at the same time.
Usually, most of the banks book FCNR deposit accounts in the below currencies:
The option to hold an FCNR deposit account in the above-mentioned currencies can vary from one bank to another.
FCNR Deposit accounts are a great option for NRIs if you want to retain your money in foreign currencies. Since your deposited money will be placed in a foreign denomination, you can be saved from the risk of exchange rate variabilities. It also makes sure that you earn good and free of risk returns. In addition to this, if you are not sure about where to invest or save your hard-earned savings, you can consider an FCNR account.
There are a number of factors that an NRI should consider before opening an account in India such as family, currency, tax, and repatriability factor.
FCNR deposit accounts are an excellent option of investment for NRIs who are looking to keep their foreign earnings in India and earn stable returns at low risk. However, there are a number of investment options for NRIs such as bonds, equities, etc. So based on your risk appetite and the investment rules of NRIs, you should consider a product that aligns with the long-term financial objectives.