Thought For the Day: Internet and Innovation should have no boundaries

NRIs are the backbone of forex reserves in India. As of November 2019, India had received $78 billion and carried its position as the highest receiver of NRI remittance. It is not a coincidence, as Indian interest rates have been the highest paying for the last few years.

NRIs have been reaping the rewards of their hard-earned money by investing them in the stock market, mutual funds as well as fixed deposits in India. An NRI account in India can be either one of these three- Non-Resident External Account (NRE), Non-Resident Ordinary Account (NRO) or a Foreign Currency Non-Resident Account (FCNR). 

NRIs also need to take care of the taxation rules prevalent in India for different investments. With the economy in a tumble with low growth rates and decreasing interest rates, it is advisable for choosing those investment options which can provide stability to NRIs. Investing in the market can also be mayhem for the capital as the markets are aping to the global economic slowdown. Let us look at various safe investment options for NRIs in India in 2020 –

  1. Bank FD – This is the first choice of investors owing to its ease of investment and repatriation facility in NRE accounts. Most NRIs have to open an NRE account, and they tend to create an online FD with surplus cash. However, they fail to note the interest rates have been falling and they should be on the lookout for more lucrative options
  2. Stocks and Mutual Funds – While we do not count these as safe options, most risk-taking NRIs can park their money in liquid funds and buy the units of mutual funds as they are in the lowest pricing range owing to fall in markets.
  3. Company FDs – One of the most underrated investments are Company FDs. They have a high potential to grow your savings as they offer higher returns as compared to bank FDs. Be sure to look out for certified Company FDs such as Bajaj Finance FD, which has the highest credit rating of FAAA by CRISIL and MAAA by ICRA. It means the deposits are as good as that of banks and government-sponsored schemes. You can utilize various benefits and features, along with the highest interest rate of 8.05%.

Growth with Company FDs

Let us see how Company FDs can help NRIs grow their investments, without compromising on the safety of the capital amount.

  • Additional Interest Rates – Enjoy an extra 0.10% if you are a returning customer and an additional 0.25% if you are a senior citizen.
  • Flexible Deposits –Plan your deposits and interest payout frequency by using the online FD calculator. You can choose tenors ranging from 12-60 months, depending upon your financial goals. The minimum deposit amount required is Rs. 25,000. You can also invest in the Systematic Deposit Plan (a new feature of Bajaj Finance FD), which allows monthly deposits starting from Rs. 5000
  • Multi-Deposit Benefit – By using a single cheque, you can create multiple deposits of varying amounts and tenors without the hassles of applying separately.
  • Avoid Exchange Rate Risk – As the investment is allowed only from the NRO account, which is in Indian Rupees, you need not worry about exchange rate risk.

NRIs can use the FD maturity calculator on the websites of various banks and NBFCs and gain the perspective of how much they need to invest to earn a particular maturity amount for a specific tenor.

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By Gaurav Khanna

Gaurav Khanna is an experienced tech enthusiast, digital marketer, and blogger who is well known for his ability to predict market trends. Check out his blog at HighlightStory

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