{"id":12396,"date":"2021-06-29T02:00:28","date_gmt":"2021-06-28T20:30:28","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=12396"},"modified":"2021-06-29T02:00:30","modified_gmt":"2021-06-28T20:30:30","slug":"best-nri-investment-options-in-india","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/best-nri-investment-options-in-india\/","title":{"rendered":"11 Best NRI Investment Options In India [with High Return Investments]"},"content":{"rendered":"\n

There are 36 million NRIs in the world and they are always looking to invest in India. To help with this we list down Best NRI Investment Options In India along with some High Return Investments. <\/strong><\/p>\n\n\n\n

NRI Investment Options In India – Why NRIs want to Invest in India?<\/h2>\n\n\n\n

There are mainly 3 reasons why NRIs are looking to invest in India<\/strong>.<\/p>\n\n\n\n

  1. Personal Attachment to India: <\/strong>Most NRIs are born in India and its very natural to have attachment to the place you were born or lived most part of your life. Additionally they have close relatives out here which further encourages to maintain that attachment.<\/li>
  2. Growing Economy:<\/strong> India has been an upbeat economy for last 25 years – giving pretty high returns specially in equity markets and real estate. <\/li>
  3. Good Diversification:<\/strong> Investment in India can help NRIs diversify their investment portfolio to earn higher but stable returns. <\/li><\/ol>\n\n\n\n

    Fixed Deposits<\/h2>\n\n\n\n

    Fixed deposits are quite popular investment option not only for Indians but also for NRIs. This is because of the guaranteed return offered by fixed deposits along with the safety and convenience it offers. Once you have any relationship with the bank, opening FD accounts is very easy and require minimum documentation as the bank already has all of the required details. <\/p>\n\n\n\n

    In the present scenario, interest in FDs ranges between 4%-7%<\/a> for Indian rupee account and 0.5% to 3% on foreign currency accounts<\/a>. An NRI can invest in FDs in an Indian Bank in 3 ways.<\/p>\n\n\n\n

    NRO Fixed Deposit (Non-Resident ordinary account)<\/h3>\n\n\n\n

    NRO is an account to manage income earned in India by an NRI.<\/strong> It provides a good rate of interest and also has a low risk. The added advantage to an NRO account is that you can also use it to receive incomes from direct equity, mutual funds, dividends or rental. Interest earned on an NRO account is taxable in India at marginal income tax rates<\/strong>. Also banks deducted TDS at the rate of 31.2% (including cess)<\/strong> on the interest earned. If you have to pay taxes in both countries for the same income, you may apply for a refund of tax in accordance with the Double Taxation Avoiding Agreement (DTAA). <\/p>\n\n\n\n

    Which bank pays highest interest on NRO Savings Account?<\/strong><\/h4>

    Most banks today pay interest in the range of 2% to 3% on their savings account. However there are banks who can pay up to 6%. We have compared the interest rate offered by all banks in India across different balances here<\/a>.<\/p><\/div><\/div>\n\n\n\n

    NRE Fixed Deposit (Non-Resident External account)<\/h3>\n\n\n\n

    NRE is an account to transfer earnings from foreign to India. Expected interest on FDs in NRE account ranges from 4% to 7%. Interest earned on it is non-taxable in India<\/strong>. But you may have to pay in your countries. If you live in a country like UAE, Saudi Arabia, and Kuwait you do not have to pay in these countries, and on another hand, if you live in a country like the USA or Canada you may have to pay taxes.<\/p>\n\n\n\n

    Get Highest NRE FD Interest Rates<\/strong><\/strong><\/h4>

    NRE Fixed Deposit scheme is a very popular investment option for NRIs. The interest earned is tax free. To help you choose the best NRE FD, we compare the interest rates on fixed deposit across all major 48 banks in India including government, private, foreign and small financial banks<\/a> in India every month.<\/p><\/div><\/div>\n\n\n\n

    FCNR (foreign-currency Non-Resident account)<\/h3>\n\n\n\n

    You can open an FCRN account through which you can invest in fixed deposits with major banks in India in your foreign currency. Almost all banks have FCNR accounts for following currencies – USD, GBP, EUR, YEN. However for less popular ones like HKD, SGD, etc you can open account in ICICI bank. FCNR deposits are opened for a period of 1-5 years. Interest earned on deposits is tax-free for NRI and RNOR<\/strong>(Resident but not ordinary resident). The best thing about this account is that it is free from foreign exchange fluctuations.<\/p>\n\n\n\n

    Latest FCNR Rates for USD<\/strong><\/h4>

    FCNR is a great investment as its safe and offers higher returns that the country you live in. Also interest earned on FCNR deposits is tax free in India. FCNR deposits also do away from the currency fluctuation risk. You can get the latest rate on FCNR interest rates here<\/a>.<\/p><\/div><\/div>\n\n\n\n

    NRE Vs NRO Account<\/h3>\n\n\n\n

    The table below gives a comparison of NRE Vs NRO Account<\/a>. You can choose which one suits you.<\/p>\n\n\n\n

    Particulars<\/strong><\/td>NRE (Non-Resident External)<\/strong><\/td>NRO (Non\u2013Resident Ordinary)<\/strong><\/td><\/tr>
    Who can Open Account?<\/strong><\/td>NRIs\/PIOs\/OCIs<\/td>Any person resident outside India<\/td><\/tr>
    When can one open Account?<\/strong><\/td>After becoming NRI<\/td>While leaving India (even before becoming NRI)<\/td><\/tr>
    Deposit Allowed<\/strong><\/td>Only overseas income in foreign currency<\/td>Income originating in India and overseas income<\/td><\/tr>
    Joint Account<\/strong><\/td>In the names of two or more NRIs. With a resident close relative on ‘former or survivor basis’<\/td>In the names of two or more NRIs or Resident Indian<\/td><\/tr>
    Repatriation<\/strong><\/td>Freely repatriable<\/td>Repatriated up to USD 1 Million in a financial Year with some restictions<\/td><\/tr>
    Transfer-ability of Funds<\/strong><\/td>NRE to other NRE & NRO accounts<\/td>NRO to NRO account only. NRO to NRE accounts requires documentation.<\/td><\/tr>
    Tax on Interest<\/strong><\/td>No Tax in India<\/td>Taxable as per Income Tax Slab<\/td><\/tr>
    TDS on Interest<\/strong><\/td>No TDS<\/td>TDS @ 31.2%<\/td><\/tr><\/tbody><\/table>
    NRE Vs NRO Account – Which one suits you?<\/figcaption><\/figure>\n\n\n\n

    NRE VS NRO Account<\/strong><\/h4>

    As you become NRI, you can no longer use the regular savings account. You need to open NRE or NRO account. We have a detailed post on NRE VS NRO account<\/a> and which one is the right choice for you?<\/p><\/div><\/div>\n\n\n\n

    Tax on Fixed Deposits for NRIs<\/h3>\n\n\n\n